West Asia war weighs on Indian markets; IPOs, unlisted shares lose steam

NSE, whose IPO is yet to open, saw its unlisted shares fall 3.47 per cent to ₹1,945, while BSE shares, already listed, rose 5.64 per cent to ₹2,860

SI Reporter New Delhi

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The ongoing conflict in West Asia involving Iran, Israel and the United States (US), which has now entered its third week, has weighed heavily on global equity markets. Indian equities have not been immune to the turbulence. Benchmark indices, the Nifty 50 and the BSE Sensex, have each declined around 7 per cent since February 27, when the conflict began.

The uncertainty has also dampened sentiment in India’s primary market and the unlisted share space, with IPO activity losing momentum and several pre-IPO stocks witnessing a decline in unlisted share prices.

Investor sentiment dampens primary markets

The impact has also been visible in India’s primary market, which had enjoyed a robust run last year but is now witnessing muted investor interest in initial public offerings (IPOs).

Amid this backdrop, Rajputana Stainless revised the listing timeline for its IPO shares to Thursday, March 19, while postponing the allotment date to Tuesday, March 17. The change followed the company’s decision to allow investors to withdraw their bids during a three-day window on March 12, March 13 and March 16. Notably, the Rajputana Stainless IPO had originally been open for subscription from March 9 to March 11.

Earlier, the SEDEMAC Mechatronics IPO, which was available for subscription between March 4 and March 6, failed to receive full subscription from retail investors and non-institutional investors (NIIs). These categories subscribed to only about 20 per cent and 77 per cent of their respective quotas. However, strong participation from qualified institutional buyers (QIBs), who oversubscribed their category by 8.46 times, helped the public issue achieve an overall subscription of 2.68 times.

Impact on unlisted market

Despite broader market weakness, the impact on the unlisted market, which had already been under pressure even before the conflict began, appears relatively limited. Some companies, including National Stock Exchange of India (NSE), Oyo, Hero Fincorp, and Zepto, have, however, seen corrections, according to data compiled by Unlisted Arena.

Among the top five companies preparing to go public whose unlisted shares are actively traded, Oyo has seen the steepest decline. Its unlisted share price has fallen about 10 per cent, from ₹25 per share on February 27 to ₹22.5 on March 16. Meanwhile, Zepto has seen its share price slip 3.57 per cent to ₹54 per share from ₹56.

The National Stock Exchange of India (NSE), whose IPO is still awaited, saw a decline of 3.47 per cent in its unlisted share price to ₹1,945 from ₹2,015. In comparison, shares of BSE, which are already listed, have risen 5.64 per cent to ₹2,860 from ₹2,707.10, according to NSE data.

Company Share Price on March 27 Last Traded Price % Change NSE 2015 1945 -3.47% Oyo 25 22.5 -10.00% Hero Fincorp 1050 1020 -2.86% SBI Funds Management 760 765 0.01% Zepto 56 54 -3.57%

Among other IPO-bound firms, the unlisted share price of Hero FinCorp has declined 2.86 per cent to ₹1,020 from ₹1,050. Meanwhile, SBI Funds Management has seen a modest uptick, with its unlisted shares rising to ₹765 from ₹760, data from Unlisted Arena showed.

Commenting on the trend, Manan Doshi, co-founder of Unlisted Arena, said the unlisted market had already been in a bearish phase even before the recent geopolitical tensions.

“The unlisted market had already been witnessing a bearish phase even before the recent geopolitical tensions. This was largely due to the subdued activity in the primary market and the overall weakness in broader equities,” said Doshi.

Historically, sentiment in the primary market tends to influence the unlisted space as well, he noted, adding that the cycle could reverse once IPO activity regains momentum and investor interest returns.

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First Published: Mar 17 2026 | 8:11 AM IST