Why PhonePe Delayed Listing

Indian stock markets have fallen over 9 per cent since the conflict escalated in late February, eroding investor wealth and confidence. With the market witnessing volatility and sell-off on a daily basis, valuation of stocks has dipped to 52-week lows in several cases. This volatility directly affects IPO plans. When markets are unstable, companies struggle to attract investors at favourable valuations, forcing many to delay their public issues until conditions improve. This situation will also impact the plan of issuers to get a good pricing for their IPOs.

Akshay Gupta, Director, Prime Securities, said India’s IPO market is facing a challenging 2026, with most new listings struggling to deliver gains amid heightened volatility and investor caution. Market jitters, driven by geopolitical tensions and weak secondary markets, are dampening risk appetite and prompting companies to delay debut plans, he said.

Why has PhonePe postponed its IPO?

PhonePe has cited geopolitical tensions and market volatility as the primary reasons for deferring its IPO. The company indicated it will revisit its listing plans once global capital markets stabilise. The fintech firm’s IPO — expected to raise around Rs 12,000–13,000 crore — was poised to be one of the largest in India. Its decision reflects a broader trend that even fundamentally strong companies prefer to wait rather than risk poor pricing or weak investor response in uncertain markets. Other companies are also set to delay the IPO plans and wait for the market to stabilise.

Of the eight mainboard IPOs so far, only three debuted above issue price, and the average return across listings is a negative –5.1 per cent, reflecting subdued performance, Gupta said.

Story continues below this ad

What is the link between stock market & IPO activity?

IPOs are highly sensitive to stock market sentiment. When markets are bullish, investors are more willing to invest in new listings, often leading to strong demand and higher valuations. Even companies prefer to launch IPOs when the market is stable and bullish.

However, during downturns and market crashes, investors turn risk-averse and valuations become difficult to justify. This situation is likely to force companies to price shares lower. “With markets falling sharply in a short span, pricing becomes challenging, and many investors prefer to stay on the sidelines. This reduces the chances of successful listings, prompting firms to delay IPOs. This is the situation now,” said a veteran market observer.

“While the IPO pipeline remains sizeable, sustained uncertainty could further stall activity. Stabilising markets and clearer global cues are key to reviving primary market confidence and participation,” Gupta said.

How widespread is the impact?

The impact of IPO market disruption is broad-based. Companies across sectors — financial services, manufacturing, technology, consumer goods and infrastructure — had lined up IPOs worth around Rs 2.65 lakh crore earlier this year. Major planned offerings included NSE, SBI Mutual Fund and Jio Platforms. Now, many medium and large IPOs are on hold. Around Rs 1.40 lakh crore worth of IPOs are awaiting regulatory approval, while another Rs 1.25 lakh crore has already been cleared but is waiting for the right market conditions.

Story continues below this ad

If delays persist, it could slow corporate fundraising and expansion plans, impact job creation and investment cycles. It would also lead to weaker performance in India’s primary market compared to last year’s record Rs 1.75 lakh crore fundraising. In short, unless markets stabilise soon, the IPO pipeline that looked robust at the start of 2026 may see significant disruptions.