IPO pipeline swells to nearly Rs 4 lakh crore: Liquidity squeeze for secondary markets or valuation reset? Analysts weigh in

India's primary market is on the brink of a colossal IPO wave, with estimates nearing Rs 4 lakh crore. Analysts express concern that this influx might siphon off liquidity from the secondary market, which could adversely affect current stock values. While IPO activity undoubtedly impacts liquidity, experts emphasize that multiple factors shape market dynamics. Historical analysis indicates that secondary market valuations may eventually appeal more to investors.