Ahmedabad: Indian tech startups are being forced to reconsider their IPO plans due to business tension generated due to a possible economic recession in the US and new tariff proposals by President Donald Trump. Investors’ interest has decreased due to increasing instability in the market, due to which many companies are considering postponing their listing.
American tariffs not only affect trade but also affect global relations and future plans of companies. The IPO season will remain weak until stability is achieved. But the situation is expected to improve after Diwali.
According to a report, about 30 startups – a joint assessment of about 100 billion dollars – is ready to enter the stock market by 2027. It includes big names such as Flipkart, PhonePe, Lenskart, Regrape, Zetwork, Misho and Ether Energy.
However, the current market conditions have changed the schemes of many of these companies. Ather Energy planned to launch an IPO later this month, but is now considering decreasing its IPO from $ 400 million to $ 350 million.
Lasted companies are suffering losses due to tariffs and its effect will also be seen on startups. This can affect their evaluation and IPO price. Tariff has reduced foreign investment in India, especially in public markets. Companies that receive a large part of their revenue from abroad or which depend on global supply chains may have a greater impact.
The joint market value of 30 new technology companies in India currently exceeds $ 110 billion. By 2030, their market cap can reach 1 trillion dollars. The reason for this is that companies are preparing for IPOs.
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