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Economic Times
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Startups not getting price they want may pause IPOs amid Trump’s tariff turmoil
- Trump's imposition of tariffs could lead Indian startups to reconsider their IPO plans due to market volatility and compressed multiples.
- Public investor sentiment may shift towards safer assets, affecting new-age companies attempting stock market debuts.
- Startups planning IPOs may need to adjust multiples and valuations to attract investors and provide safety margins.
- Some companies might defer IPOs while profitable ones with reasonable pricing could still perform well.
- Venture-backed startups like Bluestone, Ather Energy, Groww, and others are in various stages of going public.
- Founders may delay IPOs if they are not satisfied with the pricing offered by the market.
- Market volatility may lead to liquidity challenges for investors looking to exit through public markets.
- Startups valued at high PE multiples may find it challenging to secure deals in both public and private markets.
- Delhivery's distress sale of Ecom Express and the impact on private market investments suggest challenges for startups in finding ideal valuations.
- IPO plans may be pushed back by 12 to 18 months, leading to longer deal closures in the private market.
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