North India Statesman
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Ahmedabad: After two months of calm activity, new activity is being seen in the IPO market in the primary market. However, due to US President Donald Trump’s tariff threats and instability due to India-Pakistan conflict, most companies are now turning to small size IPOs.
The size of the issue filed before the start of the recession is also being reduced. Four of the seven issues declared in the current financial year include Athron Energy, Aegis Vopack Terminals, Shloss Bangalore and Skoda Tubes, cutting 15 to 30% in their size, which they planned while filing draft Red Herring Prospects near the Securities and Exchange Board of India (SEBI).
Experts believe that this trend is likely to continue even after the enthusiasm of the previous financial year, as the demand has become rational and investors are still waiting for clarity on both the US tariff front and India-Pakistan tension. In FY 2025, an all -time high amount of Rs 1.62 lakh crore was raised from the 78 Mainboard issue.
According to market experts, the latest admissions are in line with the market environment, but companies filing IPOs in the fast market will reduce the size of the issue to provide more appropriate assessment to investors. Although the market has become stable, it is not showing the enthusiasm as the previous year. To improve institutional demand, foreign investors will have to return to small and middle class shares.
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Good monsoon will help in development during the current recession. Companies are facing pressure again and when IPO activities start again after an interval, evaluation and size are usually reduced.
The overall spirit due to instability is not in favor of primary market activity and a continuous rapid market is required to resume activity. Statistics of Prime Database show that by 16 May 66 companies have valid SEBI approval, while 70 other applications are waiting for approval from the regulator.
