IPO pipeline faces uncertainty as market sentiment takes a bi hit

The Initial Public Offering (IPO) market is bracing for a slowdown as 26 companies, which have the Securities and Exchange Board of India (Sebi) approval to raise over Rs 43,000 crore between April and December 2024, are yet to launch their offerings. The prolonged delay is attributed to the prevailing market volatility, characterised by weakening investor confidence due to concerns over tariff wars and lacklustre corporate earnings with incessant selling by foreign investors adding to the market woes.According to data obtained from Prime Database, 26 domestic companies received approval from the Sebi between April and December 2024, and they are yet to hit the primary market. These companies are looking to raise Rs 42,390 crore. Typically, a company has 12 months to launch its IPO after receiving approval from the Sebi.Some of the big IPOs that have received Sebi nod between October and December 2024 and yet to launch the offers are Schloss Bangalore Ltd (Rs 5,000 crore), Ather Energy Ltd (Rs 4,500 crore), Avanse Financial Services Ltd (Rs 3,500 crore), Manjushree Technopack Ltd (Rs 3,000 crore) and Ecom Express Ltd (Rs 2,600 crore), as per Prime Database.