Hasta La Vista, IPO Market? India Pauses Before Its Next Big Debut

I'll Be Back... Eventually: The IPO Winter

The numbers. They are…disappointing. One year ago India's IPO market was booming. Now? Not so much. Only 99 listings compared to 147 last year. Hasta la vista baby said the investors to many hopeful companies. Even LG Electronics India is hesitating. What happened? Weak investor sentiment bleak macroeconomic outlook and a debut by Ather Energy that couldn't alleviate market concerns. It opened at 328 rupees a share a premium of around 2% to its issue price of 321 rupees now down more than 3%. Pathetic. Remember I told you I'd be back even IPO.

No Fate But What We Make: Consumption Slowdown

A more pressing problem? Slowing consumption levels. Rishika Chandan says corporate earnings are suffering. Private equity backed consumer brands that used to grow 35% to 40% annually only grew 15% to 20%. Not good enough. Companies are pushing back their listing plans hoping for higher sales during festive seasons. Clever girl. But the Reserve Bank of India might help. It cut rates and the government is trying to stimulate consumption. We need to see stronger revenue and profit numbers or they will be back… in private not public.

Come With Me If You Want to List: Signs of Life

There is a subtle shift. $6.4 billion raised in May. Highest monthly total since December 2024. Block trades are driving this. $1.2 billion raised in the first week of this month alone. Dhruba Jyoti Sengupta says India's fundamentals are solid. He states that the Indian primary market is just pausing before its next leap. In this instance I am a believer as well.

I Know Why You're Hesitating: Big Names Waiting

Sengupta foresees several listings including Reliance Jio Tata Capital and LG Electronics India. Reliance Jio the telecommunications arm of Reliance Industries is expected to go public later this year in an approximately 400 billion Indian rupee listing. Tata Capital is reportedly slated to get regulatory approval to list for $2 billion. If they can you can too.

Get to the Chopper… I Mean the Valuations!

Lenskart backed by Softbank KKR and Temasek is reportedly close to filing a draft of its preliminary proposal. Nicholas Cator is curious about how much it can amass on the public market. Other listings to watch: Urban Company and Bluestone gunning for unicorn status. Good hunting but do not get terminated by investors who do not find you valuable!

It's In Your Nature To Destroy Yourselves: Valuations Check

The optimism of India's IPO market is sometimes marred by concerns over elevated valuations. Swiggy and Ola Electric haven't performed well. Everybody wanted to take the valuation higher but our expectation is that valuations are already normalizing largely because some of the IPOs in the tail end of 2024 haven't really performed well. India is no longer just an emerging market. It's becoming an IPO destination with depth diversity and discipline.