Kamal Ghorui
MUMBAI: India’s choc-a-block equity-raise calendar is shifting gears, with many companies pushing back fundraises amid West Asia-driven market volatility. Deals remain on hold, not off. “The immediate impact is that investors are less willing to add risk through new deals in the near term. This isn’t so much a pricing issue but a case of biding time to see how far these events go, and to assess their overall structural and economic impact in both the near and long term,” said UBS India ECM head Abhishek Joshi. Uniqus Consultech’s partner Raghuram K said companies are adopting a “wait-and-watch approach until the ongoing crisis stabilises,” after which they are likely to proceed with IPOs. India has raised about $5 billion through equity issuances so far in 2026, down from $6 billion in Q1 2025, according to LSEG. IPOs accounted for $1.7 billion of that tally, compared with $2.3 billion a year earlier.
“The IPO momentum has tapered off in 2026 due to market conditions, weak post-listing performance-of 100+ IPOs in the past year, 30% delivered negative listing-day returns and 65% now trade below issue price-and the West Asian conflict, reflected in sharply lower IPO subscriptions, with median demand at 3x versus 28x in April-Dec 2025,” said Ambit ECM head Vikas Khattar. He added that “with market volatility remaining elevated, the fundraising environment has turned more cautious, particularly for companies planning near-term IPO launches.” Bankers insist the pause is tactical rather than structural. “Markets operate in windows and while recent events may have temporarily put a pause on IPO activity, fundamentally not much has changed in terms of investors’ belief in the growth and strength of the Indian economy,” Joshi said. Raghuram echoed the sentiment. “India’s structural growth story remains strong. With year-end earnings awaited, companies are likely to prefer a more stable market environment to discover the right valuation,” he said. Equirus Capital investment banking head Bhavesh Shah said short-term delays are unlikely to materially affect full-year IPO activity given strong domestic liquidity and rising retail participation.” Nor is India alone. Geopolitical tensions are injecting volatility into equity markets globally as investors assess the economic fallout of unfolding developments. Among emerging nations, India is now the second hottest IPO destination after the Czech Republic, which raised $4 billion through listings in Q1 2026. In Q1 2025, India held the top spot, according to LSEG. Khattar said investor preferences are also shifting. “With rising geopolitical uncertainty, investors are prioritising stronger near-term earnings visibility and more conservative valuation multiples,” he said, adding that companies are also “optimising” IPO sizes. Some of the companies listed this month, like Clean Max Enviro Energy Solutions, Omnitech Engineering, and PNGS Reva Diamond Jewellery, had reduced their IPO sizes. The year has seen 20 listings so far, according to LSEG, with a few more expected in March. For now, bankers are advising companies to stay ready so they can move quickly when the market window reopens. “Our advice is to stay prepared and be ready on the sidelines to tap the right window when it arrives,” Joshi said. Over 200 companies have filed draft prospectuses with the markets regulator, with several awaiting listing, while over 100 others, including NSE, are preparing to enter the IPO process. Bankers said activity could match or exceed last year’s levels once market stability improves, with many keeping their fingers crossed.
