"My sense is that we have to wait for the elections and we need to see more stability and more visibility, both in markets and the economy, for seeing IPO markets come back," Mr Kotak, who is also Kotak Mahindra Bank's vice chairman, told PTI on the sidelines of an event over the weekend.
According to the data collected by Prime Database, money raised from the primary market hit a 12-year low at Rs 1,619 crore in 2013.
According to analysts, the IPO market was dry due to regulatory issues and the overall dull economic conditions.
Capital markets watchdog Securities and Exchange Board of India (Sebi) has been working to revive interest in markets with schemes, including extending the longevity of the draft red herring prospectus so that issues do not collapse.
When asked about markets at present, Mr Kotak said he is "cautiously optimistic" on both the economy and the markets.
The recent outflows of foreign investors were not due to any domestic reasons, but because of external factors like nervousness among investors after the Federal Reserve's tapering of economic stimulus programme, he said.
"I don't think it is linked to domestic factors as much as the global situations around EMs and in early stage of such withdrawal, the foreign investors tend to be pretty irrational across markets. Over time, the fact that the macro is getting better, will reflect in differentiation vis-a-vis other countries," he said.
On the country's growth prospects, He said he expects the GDP to grow 4.5-5 per cent in the current fiscal year, and move up by 0.50 per cent in the next one.
"I am of the view that growth will move more cautiously. In the current year, somewhere between 4.5-5 per cent and into next year, depending on the political outcome, my expectation is 5 per cent, plus or minus half per cent," he said.
The i-banker said there are many encouraging things happening in the country and specifically lauded the ability of the government at restructuring the current account and the fiscal deficits.
He, however, said formation of a stable government post elections hold the key for economic growth.
"A fragmented mandate will put more challenge to some of the policy decisions which need to be taken and I hope we are able to come out with a solution which enables us to sustain growth and bring it close to 6 per cent."