Equity Capital Market Deals in 'Wait and Watch' Mode Amid Indo-Pak Ceasefire, Say Bankers

 Equity capital market transactions, particularly IPOs poised for launch, are being postponed or put on hold as investors seek clarity following the recent ceasefire announcement between India and Pakistan, a group of investment bankers told Moneycontrol on condition of anonymity.

"Previously, concerns centered around Trump-era tariffs and economic growth. Now, the Indo-Pak conflict has introduced fresh uncertainty. Investors have become more cautious regarding valuations, and their qualitative criteria have shifted. There is noticeable pushback on IPOs nearing launch, even when demand books were building," said one banker.

Another executive added, "It's challenging for investors to commit to IPOs as they are long-term investments. However, once stability returns, short-term transactions such as block deals and QIPs are likely to resume quickly. If the current calm persists, we expect deals that are in progress to move forward in the coming weeks."

Despite these delays, there has been little impact on IPO pitches or the filing of issue documents with SEBI.

"The filing process continues uninterrupted, as most understand that an IPO typically spans 9 to 12 months. Regulatory reviews are also ongoing," a third banker informed Moneycontrol.