Will IPOs Face Trouble Due to Market Volatility in 2025?

Experts are debating whether market volatility will affect the IPO market in 2025. Some believe ongoing fluctuations in secondary markets could dampen investor enthusiasm for new public offerings. The benchmark indices, BSE Sensex and Nifty50, have seen corrections of 11.64% and 12.68%, respectively, from their all-time highs. Despite this, the IPO pipeline remains strong.

Currently, 44 companies have already received approval from SEBI for their IPOs, aiming to raise around Rs 66,095 crore. Additionally, 67 more companies are awaiting approval, with plans to raise approximately Rs 1.17 trillion. Analysts suggest that while volatility may cause short-term challenges, the primary market could rebound once stability returns.

Some experts remain optimistic, stating that investors may still find attractive opportunities in the IPO market despite the volatility. They argue that good quality companies with strong fundamentals can still attract investors, even in uncertain times.

Overall, the outlook for the IPO market in 2025 remains mixed, with opinions divided on the impact of market volatility. While some caution against potential challenges, others believe there is still potential for growth and opportunities in the primary market.