Confidential IPO filing: 12 new‑age firms have opted for this route till now in 2025. What’s driving this trend?

In the first half of 2025, as many as 12 new-age companies, including unicorns such as Meesho, Groww, boAt, and Physicswallah, opted for the confidential pre-filing route for their IPOs—submitting draft prospectuses confidentially with the Securities and Exchange Board of India (Sebi) rather than making them publicly available at the outset.

In India, confidential IPO filings are still in a nascent stage, but they are steadily gaining traction as more startups mature and prepare for public listings. Introduced by Sebi in November 2022, the confidential pre-filing route allows companies to submit draft red herring prospectuses (DRHPs) privately before going public.

During the initial two years, only four companies took this route, starting with Tata Play, the entertainment distribution arm of the Tata group, in the launch month itself. This was followed by Oravel Stays—the parent of budget hotel chain OYO—later in 2023. However, both companies eventually shelved their IPO plans due to undisclosed reasons.

The turning point came in 2024 when Swiggy and Vishal Mega Mart launched big-ticket IPOs via the confidential route and successfully listed on the domestic bourses. Their success catalysed a wave of new filings in 2025.

“Initially, there was hesitation in adoption of the confidential filing route. However, the successful issues of Swiggy and Vishal Mega Mart have instilled confidence and paved the way for several such filings in the last few weeks” said Pranav Haldea, managing director of Delhi-based PRIME Database Group.

Among the early movers in 2025 were Physicswallah, which filed its confidential DRHP in March, followed by Tata Capital and boAt’s parent, Imagine Marketing, in April. In May, another three companies—Billionbrains Garage Ventures (Groww), logistics tech platform Shiprocket, and precision engineering firm Aequs—took the same route.

This once-nascent trend is now gaining significant momentum, as a growing number of companies embrace the flexibility and strategic benefits of confidential filings. In June alone, four firms—Gaja Alternative Asset Management (operating under Gaja Capital), Jay Jagdamba, Manipal Payment & Identity Solutions, and Shadowfax Technologies—opted for confidential IPO submissions. The trend continued into July, with Steamhouse India and Meesho joining the list in the first week.

What’s driving this trend?

Many investors may be wondering why an increasing number of new-age companies are opting for the ‘confidential route’ for their IPO filings. While several factors contribute to this trend, the most significant advantage is that it allows companies to shield sensitive financial information, key performance indicators (KPIs), business strategies, and legal details from competitors during the early stages of regulatory review.

Additionally, this route offers greater flexibility in IPO timing. Companies get an 18-month window—compared to 12 months under the traditional public filing route—to launch their IPO after receiving Sebi’s initial observations. This extended window provides room to align the offering with more favourable market conditions and investor sentiment.

“Confidential filing is a strategic shift in the IPO landscape,” said Bajaj Broking Research in a note. This is driven by several key factors, including the privacy of sensitive information, flexibility and optionality, reduced public scrutiny and speculation, enhanced due diligence, strategic marketing to institutional investors, and a longer shelf life for observations, it said.

Tarun Singh, Founder & MD, Highbrow Securities, said this has become the new normal for issuers navigating volatile markets. “This approach allows companies to test regulatory waters discreetly, fine-tune valuations amid shifting investor sentiment, and maintain competitive secrecy, especially for tech-led businesses where timing and first-mover advantage are critical,” he said.

Furthermore, the increasing adoption of confidential IPO filings suggests several underlying trends in the broader IPO market, including a maturing ecosystem for new-age companies, an emphasis on risk mitigation, and evolving regulatory frameworks.

“Companies are no longer rushing to the market but adopting surgical precision—using the confidential window to align with optimal macro windows, pre-empt valuation mismatches, and build stronger investor narratives,” Singh said.

This trend ultimately benefits all stakeholders: issuers avoid public misfires, regulators get cleaner filings, and investors see better-prepared companies, he added.

Echoing similar views, Vaqarjaved Khan, senior fundamental analyst, Angel One, said, “Confidential filings allow companies to avoid premature valuation pressures, enabling a more measured and strategic IPO process. This has contributed to a quietly growing IPO pipeline, particularly post-2023, with less hype and more structured execution.”

Going forward, the confidential IPO filing route is expected to grow faster as more startups mature. Plus, with increasing regulatory flexibility and growing awareness among new-age firms, this number is likely to rise sharply in the coming years.