IPO Activity Slows Amid Geopolitical Uncertainty; 222 Companies Wait in Pipeline

India’s primary market has lost steam after a strong start to the year, with many companies choosing to wait for better market conditions before launching their initial public offerings (IPOs). Uncertainty in the broader market and pressure on valuations have made firms more cautious.

In the first three months of 2026, primary market activity remained healthy as 18 companies launched mainboard IPOs and cumulatively raised Rs 18,928 crore. This was higher than the Rs 15,723 crore raised in the same period a year ago. In the small and medium enterprise (SME) segment, 45 companies have raised Rs 2,133 crore.

The trend, however, has weakened in April amid geopolitical tensions in West Asia, which have affected investor sentiment brutally. So far this month, only one mainboard IPO has opened, and it has raised just Rs 150 crore.

IPO Pipeline Remains Strong

IPO pipeline, meanwhile, remained strong, showed data from Chittorgath. As many as 151 companies have filed their draft papers with the Securities and Exchange Board of India (Sebi) and also received approval to collectively raise Rs 98,155 crore through public issues.

Another 71 companies have filed their draft papers but are awaiting Sebi’s approval. These companies are aiming to raise Rs 31,279 crore.

Issuers Given More Time To Launch IPOs In Volatile Markets

According to Sebi rules, companies can go public only with up to six-month-old financial data. This means IPO-bound firms using December-quarter results as the latest financials in their draft red herring prospectus (DRHP) are typically required to launch their public issue by June.

However, Sebi earlier this month provided a one-time extension for IPO observation letters that were set to expire between April 1 and September 30, 2026, pushing their validity to September 30, 2026.

"Sebi has received representation from the Industry body on difficulties faced by the issuers in mobilising resources and accessing the capital market in the backdrop of ongoing geopolitical tensions in the Middle East. This has led to several issuers to defer, recalibrate or withdraw issuance plans leading to potential lapses in observation letter validity and duplication of regulatory processes. Considering the representation of the Industry Body, the prevailing uncertain market conditions due to ongoing geopolitical tensions and subdued investor participation, Sebi has decided to grant one time relaxation to extend validity of the Sebi Observations letters, expiring between April 1, 2026 - September 30, 2026 till September 30, 2026," said a Sebi circular dated April 7.