India's once-thriving IPO market is experiencing a significant slowdown in 2025, as global economic volatility and geopolitical tensions dampen investor enthusiasm. At least two major IPOs—Avanse Financial Services and Anthem Biosciences, collectively valued at $759 million—are being postponed, joining other firms like LG Electronics India unit in delaying listings.

The decline in IPO activity is evident, with a 58% drop in the number of IPOs listed on major Indian exchanges compared to the previous year, and an 18% decrease in overall fundraising. Investor caution is further reflected in the muted market debut of Ather Energy, an electric scooter maker, which saw its shares fluctuate around the issue price of ₹321, indicating a lukewarm reception.

The challenging market conditions are attributed to several factors, including rising inflation, tightening interest rates, and global geopolitical tensions. These elements have led to a cautious approach from investors and companies alike, with many opting to delay or scale back their IPO plans.

In response to the IPO slowdown, the private equity (PE) and venture capital (VC) sectors in India are poised for growth. Industry executives anticipate an uptick in deals, particularly in financial services, IT, and healthcare sectors, as companies seek alternative avenues for capital raising amid the IPO market's challenges.

As the year progresses, the outlook for India's IPO market remains uncertain. Companies with regulatory approvals are closely monitoring market conditions, hoping for stabilization that would allow them to proceed with their listings.