India's initial public offering boom is fading, with proceeds down by a fifth from a year earlier as companies cut deal sizes, accept lower valuations and delay listings, raising doubts about sustaining momentum after two record years. The IPO market has been one of the world's strongest performers, but weakening global conditions and tepid investor demand are forcing issuers to rethink strategies. Several high-profile companies have either scaled back offerings or pulled plans entirely, signaling a shift in sentiment among both corporate issuers and underwriters.

Despite the slowdown, analysts note that the structural shift toward equity financing in India remains intact, with more firms eyeing public markets over the longer term. The cooling trend mirrors broader headwinds in Asian equity markets, where rising interest rates and geopolitical uncertainty have dampened appetite for new listings.