After a large number of listings in the stock market in the year 2024, new listings are seeing a decline amid the decline in the market. Due to the correction in the secondary market, no IPO has come to the market in the last three weeks. This decline in the number of new IPOs is also visible in the figures as only five companies went public in January and four in February, while there were 16 listings in December 2024. The IPO of Quality Power Electrical Equipment Limited was the last IPO which opened on February 14.

At least three companies, Advanced System-Tech, SFC Environmental Technologies and Vini Corporation, withdrew their draft papers and IPO plans in January and February.
The change comes after a remarkable performance in 2024, which raised a total of Rs 1.6 lakh crore through 91 public issues, driven by strong retail participation, a resilient economy and rapidly growing private capital expenditure. What is the reason for the slowdown According to PTI, Bhavesh Shah, Managing Director and Investment Banking Head of Equirus, said that the slowdown is mainly a result of correction in the secondary market, especially in January and February, which negatively impacted the share prices of many listed companies. As a result, investors have focused on their existing portfolios rather than looking for new listings. Shah emphasized that the slowdown in market activity has come due to less focus of investors on new IPOs. Strong IPO pipeline Despite this caution, V. Prashanth Rao, director and head of ECM investment banking at Anand Rathi Advisors, said the long-term outcome remains positive with a strong IPO pipeline.