India’s IPO Pipeline Faces a Serious Slowdown
India’s once-buzzing Initial Public Offering (IPO) landscape is experiencing a significant slowdown, with a staggering 144 companies currently holding proposed public issues worth ₹1.47 lakh crore in limbo. According to data from Prime Database, this freeze underscores the challenges gripping the country’s primary markets. Between January and February 2025, only ₹16,000 crore was raised from 10 mainboard IPOs, marking a sharp 37% decline from December 2024. Moreover, March saw a complete standstill, with not a single mainboard IPO launched.
High-Profile Delays and Downsizing
Several marquee companies have either delayed or significantly scaled back their IPO ambitions, attributing their decisions to regulatory bottlenecks, valuation pressures, and adverse market conditions.
Ather Energy
Ather Energy, an electric vehicle manufacturer, initially planned a ₹4,000 crore IPO but has since revised its offer size to ₹3,000 crore. The company has faced a substantial valuation cut, dropping from ₹20,000 crore to approximately ₹12,800 crore. Following two updates to its draft red herring prospectus (DRHP), Ather is now eyeing a potential launch by the end of April.
Urban Company
Urban Company is also treading cautiously. Originally targeting a valuation between $2–3 billion and aiming to raise ₹3,000 crore, the company has slashed its issue size to around ₹500 crore—an 80% reduction. While the DRHP has yet to be filed, sources indicate that the timeline for launch remains on track for late 2025.
Milky Mist
In contrast, Milky Mist appears to be sticking to its original plan, aiming for a ₹2,000 crore IPO by the end of the year. The dairy brand, buoyed by ₹50 crore in profits for FY24, is proactively working through a pre-IPO round to mitigate potential investor concerns regarding valuations at the time of launch.
LG Electronics India and JSW Cement
LG Electronics India has paused its ambitious ₹15,000 crore offer-for-sale, which was expected to be one of the largest consumer IPOs in India. The deferral is attributed to global macroeconomic concerns and uncertain investor sentiment. Similarly, JSW Cement has postponed its ₹4,000 crore IPO to July, reflecting the cautious approach many companies are adopting.
Zepto and Tata Capital
Zepto, a Y Combinator-backed quick commerce company, is currently navigating pre-IPO fundraising to enhance its domestic investor base while recalibrating its valuation. The company is now targeting a Q3 2025 launch for its IPO. Meanwhile, Tata Capital’s ₹15,000 crore IPO, among the most anticipated, is also delayed due to the prevailing market environment.
Regulatory Bottlenecks and Valuation Woes
The slowdown in IPO activity is not solely a result of market volatility; it also reflects tighter regulatory scrutiny. The Securities and Exchange Board of India (SEBI) has introduced new compliance requirements and timelines under its Market Infrastructure Institutions (MII) framework, which companies like NSDL are currently navigating. NSDL has delayed its IPO due to the need for updated financial disclosures and MII-related approvals, with SEBI extending its IPO deadline to July 31, 2025.
These delays signal a broader caution among Indian corporates and investors. Regulatory approval cycles are slower, valuations are under scrutiny, and institutional investor appetite appears muted.
The Road Ahead
Until there is greater clarity on interest rate cycles, global macro trends, and local investor sentiment, India’s IPO pipeline—which was once poised for record-breaking activity—may remain subdued. The current environment calls for a cautious approach, as companies reassess their strategies in light of evolving market dynamics.
In conclusion, the once-thriving IPO market in India is at a crossroads, facing significant challenges that could reshape its future. As companies navigate regulatory hurdles and market uncertainties, the path forward will require careful planning and strategic foresight.