India’s IPO activity slows amid West Asia crisis; pipeline swells to nearly ₹4 lakh crore

Escalating geopolitical tensions in West Asia, rising crude oil prices and persistent foreign investor outflows have injected fresh volatility into Indian equity markets, slowing momentum in the country’s primary market. Weak investor response to recent initial public offerings (IPOs) and muted listing gains have further dampened sentiment, prompting several companies to defer their public listing plans.

According to reports, several companies have already deferred their public issue plans, including PhonePe, boAt, Zepto and Flipkart, along with jewellery firms Lalithaa Jewellery Mart, Augmont Enterprises, Priority Jewels, Shankesh Jewellers and Sunil Gold. Persistent geopolitical uncertainties, weakening average listing gains and elevated valuations are making it increasingly difficult for companies to command favourable pricing despite a robust IPO pipeline.

A total of 157 companies, with plans to raise ₹2.38 lakh crore, have received Sebi approval and are poised to enter the market, while another 77 firms, aiming to mobilise nearly ₹1.58 lakh crore, are awaiting regulatory clearance, according to data from Prime Database.

The combined IPO pipeline of nearly ₹3.96 lakh crore highlights the continued appetite among Indian companies to tap public markets, even as several issuers recalibrate listing timelines amid geopolitical uncertainty and global market volatility.

So far in calendar year 2026, as many as 65 companies have already filed offer documents with the Securities and Exchange Board of India (Sebi), collectively targeting fundraising of around ₹1.43 lakh crore. The strong pipeline comes after a record-breaking 2025, when 260 companies filed IPO papers to raise nearly ₹3.97 lakh crore, making it the busiest year for IPO filings in recent history. Prior to that, 2024 had also witnessed a sharp pickup in primary market activity, with 157 companies filing draft papers to mobilise around ₹2.9 lakh crore.

According to Pranav Haldea, Managing Director of PRIME Database Group, the IPO pipeline remains staggering. “Given the recent market volatility, issuers are in a wait and watch mode. An IPO is a once in a lifetime event for a company and they would rather let their approval lapse than to launch in a volatile or bearish market,” he said.

The pipeline spans a wide range of sectors including financial services, healthcare, renewable energy, consumer internet, manufacturing, hospitality, infrastructure and technology, reflecting the broadening depth of India’s capital markets.

Financials, new-age, healthcare dominate pipeline

The data showed that financial services companies continue to dominate the IPO queue. Key names include Hero FinCorp, Credila Financial Services, InCred Holdings, SBI Funds Management and TruHome Finance.

Healthcare and diagnostics is another major theme, with companies such as Manipal Health Enterprises, Indira IVF Hospital, Agilus Diagnostics and Yashoda Healthcare Services preparing for public listings.

The consumer technology and internet segment also remains active. IPO hopefuls include PhonePe, Zepto, Shiprocket, boAt through parent Imagine Marketing, OYO through parent Oravel Stays, Snapdeal through AceVector, and Rentomojo.

Renewable energy and infrastructure-focused issuers are also lining up in large numbers, including Avaada Electro, Juniper Green Energy, Continuum Green Energy and SAEL Industries.

Among the biggest and most closely watched IPOs in the current pipeline are SBI Funds Management, which is targeting a massive ₹15,000 crore public issue, followed by PhonePe with a planned ₹11,700 crore IPO and Zepto looking to raise around ₹11,000 crore.

Healthcare major Manipal Health Enterprises is preparing a ₹10,546 crore issue, while renewable energy player Avaada Electro aims to mobilise ₹9,000 crore. Hospitality technology company OYO is planning a ₹6,650 crore IPO, whereas financial services firms Credila Financial Services and Hero FinCorp are targeting ₹5,000 crore and ₹3,600 crore issues, respectively.

Construction materials platform Infra.Market, through Hella Infra Market, is also eyeing a ₹5,000 crore offering, while logistics technology platform Shiprocket plans to raise around ₹2,400 crore through its IPO.

Sebi extends IPO approval validity

Earlier in April this year, Sebi announced a set of one-time relaxations for companies, extending the validity of IPO approvals and easing compliance requirements related to minimum public shareholding (MPS), amid continued market volatility that has impacted fundraising activity. The relaxation covers approvals expiring between April 1 and September 30, 2026, giving companies breathing room to time their market debut more strategically.

As many as 37 companies, looking to raise around ₹44,000 crore collectively, were at risk of seeing their approvals lapse amid turbulent conditions, according to Prime Database. The extension, granted after industry representations, ensures they remain IPO-ready while waiting for sentiment to stabilise.

The IPO pipeline includes some large issuers from financials, chemicals, and renewable energy sectors. Leading the pack are Credila Financial Services Ltd. and Dorf-Ketal Chemicals India Ltd., each targeting around ₹5,000 crore. They are followed by Continuum Green Energy Ltd. (₹3,650 crore), Hero Fincorp Ltd. (₹3,600 crore), and Juniper Green Energy Ltd. (₹3,000 crore).