As volatility continues to cloud India’s primary market, an increasing number of companies, particularly new-age technology firms, are opting for the confidential IPO pre-filing route, under which draft prospectuses are submitted privately to the Securities and Exchange Board of India (Sebi) instead of being disclosed publicly at the initial stage.

Over the past few years, several prominent startups and internet-led businesses, including OYO, Swiggy, Meesho, Groww, Zepto, PhonePe, Shadowfax and Shiprocket, have explored confidential draft filings with Sebi.

According to PRIME Database data, the trend has accelerated sharply since 2024 amid volatile equity markets, geopolitical tensions and shifting investor sentiment. While companies such as Swiggy, Meesho, Groww and Shadowfax successfully tapped public markets after filing confidentially, others including OYO parent PRISM, Dhoot Transmission, Zepto, Garuda Aerospace and Torrent Gas are among those preparing to list via the route.

48 firms opted for confidential IPO filings so far

The data shows that 48 companies have filed under the confidential IPO mechanism since 2022, of which half have been filed this year. Adoption remained limited in the initial phase, with just one filing each in 2022 and 2023, rising marginally to two filings in 2024.

Activity picked up sharply thereafter, with 20 filings in 2025 and a further 24 filings in the first five months of 2026 alone, indicating a strong acceleration in the use of the confidential route amid heightened market volatility and growing issuer preference for flexibility in IPO timing.

Meanwhile, so far in calendar year 2026, a total of 65 companies across both confidential and regular routes have submitted offer documents with Sebi, collectively targeting fundraising of about ₹1.43 lakh crore.

Introduced by Sebi in November 2022, the confidential pre-filing route allows companies to submit draft red herring prospectuses (DRHPs) privately before making disclosures public, enabling them to manage timing and market uncertainty more effectively.

During the initial phase of the framework, only four companies used the route, starting with Tata Play in 2022, followed by Oravel Stays, the parent of OYO, in 2023. However, both later shelved their IPO plans. The turning point came in 2024 when Swiggy and Vishal Mega Mart successfully listed after confidential filings, triggering broader adoption in 2025 as market depth improved.

In 2025–26, the pipeline has expanded across sectors such as fintech, logistics, healthcare, consumer internet and renewable energy. Companies in various stages of filing include PhysicsWallah, Tata Capital, Groww (Billionbrains Garage Ventures), Shiprocket, Meesho, PhonePe, Zepto, Avaada Electro, Indira IVF, Yashoda Healthcare Services, AGS Health, Zetwerk Manufacturing Businesses, InCred Holdings, Turtlemint, Infra.Market, Gaja Alternative Asset Management and Garuda Aerospace, among others.

Is market volatility driving the confidential IPO trend?

Market experts say the key attraction of the confidential route is the flexibility it offers during uncertain market cycles.

“In the current market conditions, with volatility, companies are uncertain about whether they will be able to launch their IPO even after getting approval, and the confidential filing route gives them greater optionality,” said Pranav Haldea, managing director of Delhi-based PRIME Database Group.

“If conditions don’t improve, their data is not made available in the public domain,” he added.

Haldea noted that tech companies, in particular, benefit from confidentiality given the evolving nature of their business models and competitive intensity. “Many of these are first-of-their-kind businesses. There is greater incentive to keep information private for longer compared to traditional sectors like steel or cement, where industry dynamics are well understood,” he said.

Another advantage is the extended validity period. While regular IPO approvals are valid for 12 months, confidential filings allow an 18-month window for companies to launch their issue.

“When you are not sure whether market conditions will be right in three to four months, this route provides flexibility,” Haldea said.

He added that market volatility, driven by geopolitical tensions, crude oil fluctuations and shifting global risk appetite, has reinforced the appeal of the mechanism.

The framework, inspired by global practices such as the United States, has gradually expanded beyond startups to include financial services, infrastructure, manufacturing and healthcare companies.

“Over time, more companies have started using this route, and it is now steadily becoming part of the mainstream IPO process in India,” Haldea said.