The IPO market may face challenges post-2025 due to geopolitical uncertainties and a potential tariff war, which could limit public market exits for private investors. While the IPO frenzy is likely to continue, it will be selective, favoring robust businesses. A recent E&Y report suggests that recent asset price corrections may lead to increased M&A activity, narrowing bid-ask spreads. Strategic sales, such as Hindustan Unilever’s acquisition of Minimalist, indicate a trend toward consolidation. As Indian corporates and MNCs seek acquisition targets, more significant deals backed by private equity and venture capital are expected in the coming years.

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