India-US trade deal has returned confidence in the market. Two IPOs are coming on 9th February and many big companies are standing in line…
highlights
- After record IPO in 2025, the IPO market remained sluggish in January due to global tension and trade war.
- Now the India-America trade deal has returned confidence in the market.
- Two IPOs are coming on 9th February and many big companies are standing in the queue.
Upcoming IPO: The year 2025 was memorable for IPOs in the history of the Indian stock market. This year, a record 108 companies offered their shares in the market. There was tremendous enthusiasm among investors, from startups to big corporate companies were entering the market and the primary market seemed to be constantly buzzing. But at the end of the year the situation changed rapidly and the pace of IPO suddenly came to a halt.
The global situation started worsening in the second half of 2025. Fears of America’s trade war, geopolitical tension and weakness in foreign markets directly impacted the Indian stock market. There was a sharp decline in Sensex and Nifty, due to which the confidence of investors was shaken. In this uncertain environment, many companies postponed their IPO plans in the first month of 2026 or adopted a cautious approach regarding the launch.
Record slowness in January, only 3 IPOs
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Its effect was clearly visible in the beginning of the year 2026. This time in January, only three companies came up with mainboard IPO. In this, BCCL’s IPO brought profit to the investors, but Amagi Media Labs and Shadowfax Tech caused loss to the investors on the very first day. Heavy selling by foreign investors made the situation more difficult. Foreign portfolio investors pulled out billions of dollars in January alone, weakening market sentiment. The result was that the amount raised through IPO in January reached the lowest level since April 2024.
Sentiment changed due to India-US trade deal
Now the picture seems to be changing again. After the announcement of trade deal between India and America, there has been a strong recovery in the stock market. Sensex and Nifty have jumped by about 5 percent from the low levels of Budget Day. This positive environment has breathed new life into the primary market also. Micro-loan providing company Aye Finance and AI and analytics firm Fractal Analytics are going to launch their IPO on February 9.
Small size IPO, but big expectations
However, both these companies are bringing IPO in smaller size than before. Aye Finance has reduced both its fresh issue and OFS, while Fractal Analytics has also reduced the size of its IPO significantly. Market experts believe that companies have now become more cautious regarding valuation and size, understanding the reality. In the current situation, this strategy is giving them an opportunity to enter the market.
Big companies are standing in the IPO line
Interestingly, even though there have been fewer IPOs in recent months, the IPO pipeline still remains strong. Big companies like CarDekho, NSE, Hero Motors, Kent RO, SBI Mutual Funds, VLCC, Reliance Jio, Flipkart, PhonePe, Zepto, Fabindia and Oyo have been preparing for IPO for a long time. As soon as stability returns to the market, these companies can also turn to the stock market.
What signals come next?
Experts believe that the India-US trade deal has given a significant relief to the IPO market. If global tension and selling by foreign investors stops, the IPO drought may end in the coming months. At present, a small but important beginning has been made and investors’ eyes are fixed on the next big IPO.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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