SMPP, PMEA Solar Tech, and two others IPOs worth ₹6,540 cr set to expire this month

As many as four companies - including Varindera Constructions, SMPP, PMEA Solar Tech, and Kumar Arch Tech - are set to let their IPO approvals worth ₹6,540 crore lapse in January 2026, despite having received clearance from the Securities and Exchange Board of India (SEBI) to raise funds, according to data shared by IPO Central.

Notably, Sebi approvals are typically valid for 12 months from the date of issuance of the observation letter.

This development comes even as 2025 emerged as a record-breaking year for the primary market, with 103 mainboard companies raising over ₹1.75 lakh crore through IPOs, surpassing the previous record set in 2024. The surge was driven by strong domestic investor demand and large offerings such as Tata Capital, HDB Financial Services, and LG Electronics India.

In 2025, around 44 companies that had received approval from the Securities and Exchange Board of India (Sebi) chose to temporarily pause or defer their IPO plans instead of launching issues amid unfavourable market conditions. Since 2019, a total of 94 companies seeking to raise about ₹1.35 lakh crore have allowed their SEBI approvals to lapse due to reasons such as adverse market conditions, legal challenges, and other undisclosed factors.

SMPP IPO

SMPP, a manufacturer serving industrial and engineering applications, received SEBI approval for its ₹4,000-crore IPO on January 29, 2025. The issue comprised a ₹580-crore fresh issue and a ₹3,420-crore offer for sale, making it one of the larger IPOs in its peer group. While the company has demonstrated steady revenue growth, profitability remains vulnerable to raw material price volatility and cyclical industrial demand. With investor appetite in industrial manufacturing turning selective and valuation expectations under pressure, SMPP appears to have deferred its listing plans. Failure to launch before approval expiry could necessitate revalidation.

PMEA Solar Tech IPO

PMEA Solar Tech, a player in India’s fast-growing renewable energy and solar solutions segment, received SEBI approval on January 14, 2025. The proposed IPO included a fresh issue of around ₹600 crore and an offer for sale of over 1.12 crore shares, aimed at funding capacity expansion and strengthening the balance sheet. Despite strong sector tailwinds, the company appears to have paused its listing amid volatile markets and cautious institutional sentiment toward capital-intensive green energy businesses. Elevated funding requirements and valuation sensitivity may have influenced the decision to let the approval lapse.

Kumar Arch Tech IPO

Kumar Arch Tech, operating in architecture-led construction technology and project execution, secured SEBI approval on January 31, 2025, for a ₹740-crore IPO comprising a ₹240-crore fresh issue and a ₹500-crore OFS. The company’s differentiated, design-led model and technology focus offer niche positioning. However, scalability concerns and margin sustainability in the construction services space have weighed on investor sentiment. Weak post-listing performance of comparable mid-sized firms has likely added to caution. As the approval window narrows, Kumar Arch Tech must decide whether to proceed with the IPO or refile updated documents.

Varindera Constructions IPO

Varindera Constructions, an infrastructure-focused EPC player engaged in roads, bridges and government-backed projects, received SEBI approval for its ₹1,200-crore IPO on January 23, 2025, after filing its DRHP in October 2024. The issue comprised a fresh issue of around ₹900 crore and an OFS of ₹300 crore, with proceeds largely earmarked for working capital, equipment purchases and balance-sheet deleveraging. However, sustained margin pressure in the construction sector, uneven order inflows and subdued secondary market sentiment for infrastructure stocks have weighed on the company’s listing plans. A delay beyond the approval window would require refiling updated draft papers.