At least two initial public offers (OPI) are expected to be delayed, which adds to a growing list of companies that decide to postpone plans for initial public lists due to the weak feeling of investment, Sayers investment bankers.
The provider of educational loans Avans Financial Services and the contractual drug manufacturer Anthem Biosciences are among the companies that will join notable names such as the unity of India of India of India LG Electronics of conglomeration of South Korea, to put OPI’s plans waiting for now, the bank said.
“There are only selected institutional investors at this point given the global uncertainty,” Suraj Krishnaswamy, managing director of Investment Banking in Axis Capital said. “And India-Pakistan tensions have not helped.”
The trend is an indication that global commercial friction and geopolitical tensions have cloudy economic perspectives and caused companies to delay their capital and investment collection plans.
On Tuesday, the debut in the ATher Energy electric scooter manufacturer will be an indicator of the appetite of investors. In the prior market activity, its shares have fluctuated around its issuance price of ₹ 321, indicating a dull start.
Avanse Financial and Anthem Biosciences did not respond to Reuters Consultations for comments.
“There are only selected institutional investors at this point given the global uncertainty,” Suraj Krishnaswamy, managing director of Investment Banking in Axis Capital said. “And India-Pakistan tensions have not helped.”
Up to 58 companies with regulatory authorization have not launched their OPI due to global market interruptions caused by the tariffs of the president of the United States, Donald Trump, who have negatively affected the commercial feeling and fed the fear of the recession.
The regulatory authorizations of some of these companies will expire in the coming months, said Prime Database Group MD Pranav Haldea, forcing them to restart the entire process or extension of the OPI of the market regulator.
India, which was the second largest IPO market in the world last year, has seen a 58 percent drop in the OPIs that appear in the main stock exchanges so far this year, according to the main database. The total collection of funds on all listing platforms has seen a drop of 18 percent, according to LSE data.
“Things move slowly, but it’s not a dead point.
The company’s executives agreed.
“You don’t want to present a presentation when you don’t know how long the volatility will last,” said the CEO of Automobile Automobile Marketplace Dream, Sandop Aggarwal, and added that his company had decided not to present the draft documents for June as he had planned original.
Worried investors
Retail investors, who have suffered significant losses due to market volatility, are more cautious with new investments, resulting in a warm reception for this year’s OPI.
Ather Energy, who decided to process with its IPO of $ 352 million despite uncertainty, had to reduce its objective valuation by 44 percent and release its sacrifice size, although the OPI was full of subscriber.
“Ather can be a risky bet given the current geopolitical problems and high assessment,” said senior research analyst Astha Jain.
The unpredictable environment is inciting bankers to urge their possible OPI clients to adjust their strategies.
“If the problem is important, then it can reconsider the valuations. If the valuation is important, then you must wait for a time,” said Bhaveh Shah, managing director and investment manager in Equirus.
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Posted on May 6, 2025
