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India’s once-buzzing IPO pipeline is facing a serious slowdown. As many as 144 companies with proposed public issues worth a staggering ₹1.47 lakh crore are currently on hold, according to data sourced from Prime Database. Of these, 67 companies are still awaiting approval from the Securities and Exchange Board of India (SEBI) to move forward.
The numbers underscore the depth of the freeze gripping India’s primary markets. Between January and February 2025, only ₹16,000 crore was raised from 10 mainboard IPOs—a sharp 37% drop from December 2024. And in March, not a single mainboard IPO was launched, marking a complete standstill in activity.
High-Profile Delays and Downsizing
Several marquee companies have either delayed or significantly scaled down their IPO ambitions, citing regulatory bottlenecks, valuation pressures, and adverse market conditions.
Ather Energy, which had initially planned a ₹4,000 crore IPO, has now revised its offer size down to ₹3,000 crore. Sources say the electric vehicle manufacturer has seen a sharp valuation cut—from ₹20,000 crore to around ₹12,800 crore. The company has already filed two updates to its draft red herring prospectus (DRHP), pushing its potential launch to the end of April.
Urban Company is also treading cautiously. Originally targeting a $2–3 billion valuation and a raise of ₹3,000 crore, the company has slashed its issue size to approximately ₹500 crore. That is an 80% cut. While the DRHP has yet to be filed, sources suggest the timeline for launch remains on track for late 2025.
Milky Mist, as per sources, appears to be sticking to its original plan. The dairy brand is aiming for a ₹2,000 crore IPO by the end of the year, buoyed by ₹50 crore in profits for FY24. However, in anticipation of weak investor enthusiasm, the company is working through a pre-IPO round to avoid investors and valuation concerns at the time of the launch.
In contrast, LG Electronics India has hit pause on its massive ₹15,000 crore offer-for-sale. Once expected to be among the largest consumer IPOs in India, the listing has been deferred due to global macroeconomic concerns and uncertain investor sentiment.
JSW Cement has also pushed its ₹4,000 crore IPO to July, according to sources. Meanwhile, Zepto is working through pre-IPO fundraising to add more domestic names to its cap table while also dealing with valuation recalibrations. The Y Combinator-backed quick commerce company is now eyeing a Q3 2025 launch of its IPO, according to people with direct knowledge of the matter.
Tata Capital, whose ₹15,000 crore IPO was among the most anticipated, is now delayed in the light of the current market environment, per sources.
Regulatory Bottlenecks, Valuation Woes, and Cautious Sentiment
The IPO slowdown isn’t just about market volatility—it also reflects tighter regulatory scrutiny. SEBI’s Market Infrastructure Institutions (MII) framework has imposed new compliance requirements and timelines that companies like NSDL are currently navigating. NSDL, for instance, has delayed its IPO due to the need to update financial disclosures and obtain MII-related approvals. SEBI has extended its IPO deadline to July 31, 2025.
Combined, these delays signal a broader caution setting in among Indian corporates and investors. Regulatory approval cycles are slower, valuations are under the microscope, and appetite among institutional investors appears muted.
Until there is more 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.
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