The once-thriving primary market, once buzzing with a surge of initial public offerings (IPOs), has entered a quieter phase. Three months into the year, the slowdown in public issues amid a broader market downturn comes as no surprise. The bigger question now is whether IPO momentum can make a strong comeback in the next two quarters, said Sarthak Misra, Partner at SoftBank, speaking at Moneycontrol’s 2025 Global Wealth Summit.
Reflecting on past market cycles, Misra noted striking similarities to the post-Facebook IPO period.
“I started when Facebook went public in the summer of 2012, only to see its stock quickly drop by half. Back then, companies like Groupon and Zynga had market caps of $12 billion, yet despite 15-18 companies being slated to go public, the IPO market came to a standstill. I wouldn’t be surprised if we see something similar now—and that’s completely fine,” he said.
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So far this year, 10 IPOs have been filed on the BSE mainboard, a sharp decline compared to 90 in 2024, 59 in 2023, and 38 in 2022. The cooling IPO market reflects broader concerns around valuations, investor sentiment, and liquidity conditions. However, Misra remains optimistic about the long-term trajectory.
“While we all hope for excitement in the next two quarters, IPOs should be viewed with a long-term lens. If you had invested in that basket of companies back then, you would likely be pleased with where they are today. The same applies to the long-term outlook of Indian markets,” he added.
Despite the slowdown, Misra expects consumer tech companies to lead the next wave of IPOs. Stock broking firms are also on the horizon—“it’s only a matter of time,” he noted.
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