At least two Indian initial public offerings (IPOs) with a combined value of $759 million are expected to be postponed, according to investment bankers, adding to a rising number of companies delaying their stock market debuts due to weak investor sentiment.
Avanse Financial Services, a provider of education loans, and contract drug manufacturer Anthem Biosciences are among the firms expected to defer their IPOs. They join other high-profile companies, including the Indian unit of South Korean conglomerate LG Electronics (LGEL.NS), in putting their listing plans on hold, bankers said.
“There are only select institutional investors coming in at this point given the global uncertainty,” said Suraj Krishnaswamy, Managing Director of Investment Banking at Axis Capital. “And India-Pakistan tensions have not helped.”
The delays come as global trade tensions and geopolitical instability, including tariff-related disruptions under U.S. President Donald Trump, have dampened the economic outlook and caused many firms to reassess capital raising strategies.
The recent market debut of electric scooter maker Ather Energy (ATHR.NS) — seen as a bellwether for IPO sentiment — further signaled market caution. Although it listed at a 2% premium to its issue price of 321 rupees, the stock ended its first day down 5.8%, reflecting broader concerns about profitability and stiff competition in the EV space.
So far this year, India — last year’s second-largest IPO market globally — has seen a 58% decline in the number of IPOs on its main stock exchanges, with total fundraising across platforms dropping 18%, according to data from PRIME Database and LSEG.
Avanse Financial received regulatory approval for its $356 million IPO in October 2024, while Anthem Biosciences secured clearance for a $403 million issue on April 3. Neither company responded to Reuters’ requests for comment.
According to Pranav Haldea, Managing Director of PRIME Database Group, some firms risk losing their regulatory approvals in the coming months unless they either relaunch the IPO process or obtain extensions from India’s securities regulator.
Retail investor caution has also played a role in the slowdown, with many still reeling from recent market volatility. “You don’t want to file [for an IPO] when you do not know how long the volatility will last,” said Sande
