Mumbai: Just as when the world was preparing for the dust to settle through the US-Iran ceasefire, US President Donald Trump has backtracked on the peace by saying that the Memorandum of Understanding (MoU) with Iran was ‘over’. This, along with fresh US military strikes on Iran on Tuesday, July 7, has threatened the fragile peace in the region, jeopardizing the recovery expected by the markets around the world.
For India, the highly anticipated mega IPO pipeline is at risk, as PhonePe, NSE and Jio Platforms look to raise ₹2.5 lakh crore from the markets. PhonePe has already suspended its IPO plans in March, citing ‘geopolitical conflicts and market volatility’ as the concern. Even the SEBI has taken the unusual step of allowing companies to cut IPO sizes by up to 50% without refilling paperwork, a concession that’s valid until September 30.
According to an Economic Times report, almost ₹70,000 crore of IPO listings were at risk due to the conflict since March. Fresh IPO fundraising has already fallen to ₹16,000 crore from ₹19,000 crore in the same period last year. The ceasefire had renewed optimism in the markets, with stocks rallying and oil prices falling to three-month lows. However, this renewed spate of provocations is delaying the optimism in the markets, which have crashed consistently over the past three months. Brent crude prices have also surged above $78 a barrel, highest in almost a fortnight, as the markets dread a delay in peace negotiations to resolve the conflict.
