Why India’s IPO pipeline is swelling despite market volatility

By: Team India Tracker

The IPO market is set to gain momentum in Q1 FY27, backed by a deep pipeline of companies with pending approvals or launch-ready clearances

India’s primary market pipeline is swelling, with a sharp spike in draft filings in March pointing to improving issuer sentiment—even as companies hedge against volatile markets by getting regulatory approvals in place early. As many as 38 companies, including SBI Funds Management and Manipal Health Enterprises, filed preliminary initial public offering (IPO) papers with the Securities and Exchange Board of India (Sebi) in March 2026. The surge marks a steep rise from 22 filings in March 2025 and 16 in March 2024, underscoring a growing queue of companies preparing to tap public markets. 

The uptick caps a strong year for equity issuance. In FY2025-26, 112 companies launched IPOs, up from 78 in the previous fiscal, according to data from Prime Database and Bloomberg. The momentum reflects a broader revival in India’s capital markets, even as global uncertainties and intermittent volatility persist. 

The March spike is not just about optimism—it also reflects a tactical shift by issuers. Companies are increasingly filing early to secure regulatory clearance, allowing them to time their listings when market conditions turn favourable. Companies are increasingly filing early, given regulatory timelines and the difficulty of timing markets, to remain prepared for favourable listing windows. With approvals valid for up to 12 months, such early filings are seen as a strategic move rather than a pure reflection of market sentiment. 

This explains why the surge comes even as markets grapple with geopolitical tensions and intermittent volatility. So far in 2026, 18 companies have launched IPOs, with eight hitting the market in March alone, suggesting issuers are willing to test investor appetite despite uncertain conditions. 

Big-ticket listings in the pipeline 

The pipeline is expected to deepen further. High-profile companies such as the National Stock Exchange (NSE) and Reliance’s telecom arm Jio are preparing to file draft papers in the coming weeks, according to merchant banking sources. Other potential issuers include Sembcorp Industries’ Indian renewable energy arm, Sweden-based Modern Times Group’s subsidiary PlaySimple, TPG-backed lending platform Fibe, and Tiger Global-backed Battery Smart. 

The breadth of sectors—from financial services and healthcare to clean energy and digital platforms—highlights the diversification of India’s IPO market, which is no longer dominated by a handful of industries. 

Confidential filings gain traction 

Of the 38 companies that filed in March, nine opted for the confidential filing route, including Zetwerk, Rediff.com India, Torrent Gas, Synergy Advanced Metals, Garuda Aerospace, and Sohan Lal Commodity Management. 

The rising use of confidential filings reflects issuers’ preference to test regulatory waters without immediate public disclosure, particularly in volatile environments. It also aligns India’s market practices more closely with global norms, where such mechanisms are widely used to manage timing risks. 

Since March 2025, 20 companies have taken the confidential route, indicating a structural shift in how firms approach public listings. 

Strong backlog signals future supply 

The pipeline remains robust beyond immediate filings. According to an Axis Capital report, 64 companies have filed DRHPs and are awaiting Sebi clearance, while 124 companies have already secured approval but are yet to launch their IPOs. This backlog points to a significant overhang of potential supply, which could hit the market in phases depending on investor sentiment and liquidity conditions. 

Performance data suggest the market has been reasonably supportive. Of the 109 mainboard IPOs in FY26 (till March-end), 69 listed above their issue price, while only three were yet to debut as of March 31. This indicates that despite volatility, investor appetite for primary issuances remains intact. 

Sentiment vs strategy 

Market participants say the March surge reflects a mix of improving confidence and procedural factors. The surge in filings cannot be attributed solely to regulatory timelines; it reflects a combination of improving issuer confidence and compliance-driven moves to complete filings before the fiscal year-end. 

At the same time, not all companies are rushing ahead. Digital payments firm PhonePe has temporarily deferred its listing plans, citing geopolitical risks and market volatility, though its chief executive Sameer Nigam reiterated the company’s commitment to going public in India. 

Looking ahead, the IPO market is expected to gather further momentum in the first quarter of FY27, supported by a deep pipeline of companies with either pending approvals or ready-to-launch clearances. The key variable remains market stability. With global uncertainties still in play, issuers appear to be prioritising readiness over timing perfection—a strategy that allows them to move quickly when investor sentiment improves. 

The surge in filings, therefore, signals not just optimism but a more mature approach to capital markets—one where companies prepare in advance and wait for the right moment to strike.