IPO launches fell in last two pre-election periods, will 2019 be different?

I-bankers say the uncertain market environment is not conducive for raising capital

The six-month period before Lok Sabha elections has historically been good for secondary markets. However, this cannot be said of initial public offerings (IPOs). Issuances dropped six months ahead of the previous two Lok Sabha elections.

Six months ahead of the 2009 elections, only two IPOs were launched, and before the 2014 elections, only one had hit the market.

Investment bankers say the uncertain market environment is not conducive to capital raising. Therefore, companies and investors refrain from equity launches ahead of general elections.

This year could be no different. Industry players have forecast primary market activity will remain tepid until May.

“Investors look