Tariff Impact Forces 58 Companies to Delay IPO Plans – The tariff impact on IPO markets is making global headlines, and not without reason. In 2025, 58 companies have delayed their Initial Public Offering (IPO) plans due to heightened trade tensions and sweeping tariffs, primarily introduced by the United States. This dramatic slowdown in IPO activity is sending ripples across global markets—including India—and is raising concerns for both retail and institutional investors.
At the heart of this delay lies a new wave of protectionist policies. The U.S., under its “Liberation Day” trade strategy, has imposed a 145% tariff on Chinese goods and a 10% tariff on all imports, which has triggered uncertainty, market volatility, and weak investor sentiment. This environment has made it difficult for companies to assess the right valuation and attract confident participation in public listings.
Tariff Impact Forces 58 Companies to Delay IPO Plans
| Feature | Details |
|---|---|
| Number of IPOs Delayed | 58 companies globally |
| Main Cause | U.S. trade tariffs (145% on China, 10% on all imports) |
| Effect on India | IPO market down 58%, funding down 18% |
| Notable Companies Affected | Avanse Financial, Anthem Biosciences, LG India |
| Investor Risk | Reduced new investment opportunities, exit challenges for VCs |
| Additional Insight | Increase in due diligence and private fundraising rounds |
| Source | Reuters, Business Insider, Politico |
The tariff-induced IPO delay in 2025 has put investors in a cautious spot. With 58 companies holding back, the IPO landscape looks uncertain in the short term. But history shows us that strong companies will eventually come to market, and resilient investors will still find opportunities.
Whether you’re a retail investor, startup founder, or fund manager, this is the time to focus on patience, diversification, and research. Stay alert to policy changes, and don’t put all your eggs in the IPO basket.
Understanding the Tariff Shock: What Happened?
In April 2025, the United States launched a new trade war strategy, drastically increasing tariffs on imports. These aggressive measures were designed to protect domestic industries but have inadvertently disrupted global trade and equity markets.
This ripple effect was swift. Stock markets reacted negatively. Investor confidence dropped. And most critically for startups and growing companies—valuation expectations could no longer be met. This led to widespread IPO cancellations and delays.
Some of the companies that postponed their IPOs include:
- Avanse Financial Services
- Anthem Biosciences
- LG Electronics (India unit)
On the other hand, Ather Energy, an Indian EV manufacturer, went ahead with its IPO but received lukewarm investor interest amid the uncertainty.
Why Companies Are Backing Out of IPOs in 2025?
Investor Uncertainty
When markets turn volatile, investors become cautious. IPOs depend heavily on investor sentiment. If the mood is pessimistic, under-subscription becomes a real risk.
Valuation Challenges
A company that could command a ₹10,000 crore valuation in a stable market may be forced to settle for ₹6,000–₹7,000 crore today. Naturally, promoters and early-stage investors prefer to wait for better times.
Global Risk Aversion
Institutional investors worldwide are reevaluating their positions. Many are cutting down on emerging market exposure, particularly IPOs that require high risk tolerance.
Compliance and Regulatory Concerns
New tariff rules are adding complexity to compliance. Companies now need to reassess their supply chains, cost structures, and global compliance before going public.
How the IPO Delay Affects Indian Investors?
Retail Investors
If you’re a retail investor hoping for strong IPO gains in 2025, this slowdown means fewer new listing opportunities. That also translates into fewer chances for short-term gains and long-term portfolio additions.
Venture Capitalists (VCs) and PE Firms
Delayed IPOs mean delayed exits. Venture capitalists rely on IPOs to unlock capital and show returns. A sluggish IPO market can disrupt capital recycling, slowing down fresh startup investments.
Startup Ecosystem
Startups aiming to expand using public funds now face financing bottlenecks. This could impact job creation, innovation, and future profitability.
Private Markets May Thrive
As IPO windows close, private fundraising is gaining traction. Many companies are opting for late-stage private equity rounds or pre-IPO bridge funding to extend their runway.
What This Means for the Future IPO Pipeline?
The long-term effects of this market turbulence could be significant:
- Stalled pipeline: With 58 companies pulling back, we may not see a rebound until 2026.
- Risk repricing: Markets will reassess how to value IPOs amid geopolitical risk.
- Sector shift: Companies in defensive sectors—like software services or FMCG—may proceed with IPOs, while industrial and manufacturing firms might hold off longer.
- SPAC Resurgence?: Special Purpose Acquisition Companies (SPACs) may make a comeback as alternative listing routes for firms seeking capital without traditional IPO exposure.
How Should Investors React to IPO Volatility in 2025?
1. Diversify Your Investments
Don’t just rely on IPOs. Explore mutual funds, index ETFs, and high-yield FDs to balance your portfolio.
2. Focus on Fundamentals
If an IPO does come to market, check the company’s debt levels, revenue growth, unit economics, and market potential. Avoid hype-driven decisions.
3. Monitor Policy Changes
The global IPO outlook is deeply influenced by macroeconomic policy and trade agreements. Follow developments closely to anticipate future opportunities.
4. Watch for Strategic Timing
Sometimes, the best returns come not from the IPO day but from investing after the stock stabilizes in the market. Be patient.
Examples of Past IPO Delays and Recovery
- In 2020, several companies postponed IPOs due to the COVID-19 outbreak. However, many bounced back stronger in 2021.
- In 2018, market turbulence from Fed interest rate hikes saw similar delays—but resilient companies came out stronger.
These examples show that IPO delays are temporary—but timing and risk management are key for investors.
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FAQs about Tariff Impact Forces 58 Companies to Delay IPO Plans
Q1. Why are IPOs being delayed in 2025?
Due to trade tariffs imposed by the U.S., financial markets have become volatile. This affects investor confidence, leading many companies to postpone IPOs.
Q2. Are Indian IPOs also being affected?
Yes. Major Indian firms like Avanse Financial and Anthem Biosciences have delayed their plans. IPO activity in India is down 58% in 2025.
Q3. Is it safe to invest in IPOs right now?
It depends on the company and sector. Software and digital service companies are relatively safer. However, investors should research thoroughly and not rely solely on hype.
Q4. When will the IPO market recover?
Recovery depends on global trade conditions and market stability. If tariffs are lifted or adjusted, we could see IPO activity rebound by late 2025 or early 2026.
Q5. What are the alternatives to IPO investments?
Mutual funds, bonds, exchange-traded funds (ETFs), and blue-chip stocks offer safer alternatives during IPO slowdowns.
Q6. Could SPACs replace traditional IPOs?
Potentially. SPACs offer an alternate route for listing and may gain momentum if traditional IPOs remain subdued.
