The increasing geopolitical tension in West Asia is impacting India’s IPO pipeline. This year, companies like Jio Platforms, Flipkart Internet, Zepto, PhonePe and SBI Funds Management are expected to enter the mega IPO market worth about Rs 70,000 crore.
This risk comes at a time when India’s primary market has remained sluggish even as early as 2026, after two record-breaking years in terms of listings. According to Bloomberg data, in the first quarter of 2026, companies raised about Rs 16,000 crore through IPO, whereas last year during the same period this figure was Rs 19,000 crore.
The listing performance has also been weak. Seven of the last nine mainboard IPOs started with negative listing gains, pointing to a cautious attitude of investors amid the recent fall in the equity markets.
Experts say that increasing geopolitical risks, including the Iran conflict, are increasing instability in global markets and forcing companies to rethink the timing of their public offerings. A recent example of this is PhonePe, which decided to postpone its IPO plans citing geopolitical uncertainty and market volatility.
According to the ET report, investors were demanding less than the previously decided valuation of $15 billion of the company. This shows how volatile markets can put pressure on price expectations. Experts say that if the situation does not stabilize in the next few months, then similar valuation related challenges may arise for many big listings to happen in the coming months.
Is the listing postponed?
- Jio IPO:One of the potential big IPOs is Jio Platforms, the telecom unit of Reliance Industries. This company is preparing to launch India’s biggest IPO till date. According to initial estimates, the company is working with many banks for this offering, due to which the valuation of Jio can reach up to $ 170 billion. Based on the minimum 2.5 per cent public shareholding requirement recently set by regulators for large issuers, the company can raise about $4.3 billion (about Rs 40,000 crore) through this sale.
- Flipkart IPO:Another listing on which everyone is eyeing is Flipkart. This Walmart Inc. Is an e-commerce company under the control of. Flipkart has recently transferred its holding company structure from Singapore to India. This move is widely seen as preparation for the company’s domestic listing. The company’s previous valuation was around $37 billion in 2024, when Alphabet Inc invested $350 million.
- SBI Funds Management IPO:Asset management company SBI Funds Management, which is backed by State Bank of India and Amundi SA, is also considering an IPO. Up to $1.2 billion can be raised from this IPO in the first half of 2026. Such listing will provide an opportunity to public market investors to directly invest in India’s rapidly growing mutual fund industry.
- Zepto IPO:Meanwhile, quick commerce company Zepto had earlier submitted confidential documents for an IPO. About Rs 11,000 crore is expected to be raised from this IPO. However, analysts say that companies in high-growth sectors may be more sensitive to the changing mood of investors regarding valuations.
Challenges facing companies
The big challenge faced by companies launching IPO is that in volatile markets, investors generally shy away from investing in new listings. When benchmark indexes fall sharply, investors often prefer to invest in large-cap stocks whose prices have fallen, rather than participating in IPOs, which they consider more risky.
Khushi Mistry, research analyst at Bonanza Portfolio, had earlier said that this slowdown reflects the changing mood of investors. He said that the decline in the broad and midcap indices in the market has reduced the risk taking ability of investors. Instead of making new purchases, investors are giving priority to averaging down the average price of their existing shares. Until the secondary market stabilizes, this sluggishness in the market may persist.
PL Capital Markets Executive Director Uday Patil said in a media report that in the current environment, companies have become more cautious about launching IPOs. He said that volatility in the secondary market and concerns over valuations have weakened investors’ willingness to invest. Companies are hesitant in launching new IPOs because they fear that they will not get a good response from investors. This slowdown in the market is not a structural problem, but it is for some time.
Still the pipeline is strong
Investment bankers say that despite the current slowdown, the IPO pipeline remains strong. Bhavesh Shah, managing director and head of investment banking at Equirus Capital, said in the ET report that the current slowdown is mainly due to the change in investor mood and not due to any structural problem. Shah said that this slowdown in IPO is not a structural problem, but is due to the weak mood of investors in the secondary market. Companies are taking more thoughtful steps regarding whether to launch an IPO or not. Due to the changing mood of investors, companies have become more cautious about deciding the right time and price for launching an IPO.