Fed tightening may delay listing of unicorns in India: Chris Wood

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26 Aug, 2025 12:21

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The Federal Reserve tightening its monetary policy will not end the much anticipated listings of Indian unicorns but only delay it, said Christopher Wood, head of global equity strategy at US-based investment bank Jefferies.

The arrival of a growing number of listed digital plays is clearly coming, which will add another dimension to the stock market, said Wood.

"Meanwhile, as with China in the early 2000s, a listing of prominent state-owned enterprises can lift significantly the overall market capitalisation of the whole stock market which is currently $3.5 trillion," Wood added.

2021 was the best year for companies that listed after their initial public offerings in the midst of a pandemic that crimped economic activity and left many jobless. About 64 companies came out with IPOs totaling Rs 1.2 lakh crore in 2021, while most of them doubled on listing day from their issue price.

Currently, almost 45 companies have got regulatory approval for their planned IPOs for a total of about Rs 50,000 crore. Over 35 companies are awaiting the regulator’s approval to go ahead with Rs 60,000 crore of IPOs and over half a dozen companies have filed draft papers so far this year.

Recently, post the weak listing of Paytm owner One97 Communications Ltd many IPOs saw muted response with tepid listings. Start Health and Allied Insurance, Anand Rathi Wealth, RateGain Travel Tech, Metro Brands, Medplus Health Services and CMS Info Systems saw muted listings.

Payments firm MobiKwik has delayed its plans to proceed with an IPO this month, said a TOI report. Meanwhile, The Economic Times said Go Air has put on hold its Rs 3,600 crore-IPO plan.

So far, 2022 has also seen muted response for IPO. AGS Transact Technologies Ltd and Adani Wilmar Ltd have cut their IPO size. Vedant Fashions was subscribed on the last day of its IPO with just 2.57 times. Retail participation and high networth investors got unsubscribed.