Market correction puts IPO rush on hold; 2026 sees only 3 issues so far

markets

• January saw only three IPOs, raising Rs 4,765 crore.
• Over 200 companies are preparing IPOs for 2026, but launches may be staggered
• Market volatility and weak post-listing performance dampen investor sentiment.

Did our AI summary help?

Primary market issuances have cooled sharply, with January seeing only three initial public offerings so far, as sustained volatility in equity markets has prompted companies to remain on the sidelines.

After a record year in 2025, when companies raised Rs 1.76 trillion through IPOs, fundraising activity in 2026 has remained muted so far. January till date, only three companies have launched public issues this year, collectively raising about Rs 4,765 crore. These include Bharat Coking Coal, Amagi Media Labs and Shadowfax Technologies.

Industry experts said while a few IPOs could enter the market in the coming months, many companies are likely to defer listing plans due to continued market uncertainty. Several firms that have already received regulatory approval may delay launches as volatile conditions make pricing difficult. Prolonged delays could also result in the expiry of financial statements included in draft prospectuses, requiring companies to update disclosures with the latest financials and further postponing fundraising plans.

Gaurav Bhandari, Chief Executive Officer of Monarch Networth Capital, said the slowdown in primary market activity is largely due to the meaningful correction witnessed across broader market and mid-cap indices. He said intense selling in these segments has created opportunities at lower valuations, prompting investors to deploy capital toward averaging existing holdings rather than subscribing to new issues, resulting in muted IPO activity.

Despite the slowdown, the IPO pipeline for 2026 remains strong. More than 200 companies are preparing to tap the markets. Of these, 88 firms have already secured Securities and Exchange Board of India approval to raise over Rs 1 lakh crore, while others are awaiting clearance for an additional Rs 1.5 lakh crore. The pipeline includes several large names such as Hero Fincorp, Reliance Jio, Flipkart, PhonePe, HDFC Securities, OYO, Zepto and Boat.

Experts said the pace of IPO launches seen over the past two years will depend heavily on overall market conditions and cannot be viewed in isolation. IPO activity is influenced not only by institutional participation but also by sentiment among high-net-worth individuals and retail investors, making secondary market stability a key factor for revival. They added that activity may remain subdued for a few months until broader markets stabilise, unless supported by major policy or budget-related announcements. Predicting an exact recovery timeline remains difficult, as market normalisation depends on multiple domestic and global factors.

Vinit Bolinjkar, Head of Research at Ventura, said progress on trade agreements between India and key global partners, including the United States, along with improved global economic stability, could act as meaningful catalysts for renewed momentum in the primary markets.

Some experts also noted that the size of the IPO pipeline has contributed to caution, with concerns that multiple large offerings launched simultaneously could strain market liquidity. As a result, issuers are opting to stagger launches rather than rush multiple offerings at the same time. They added that muted post-listing performance of some recently listed companies has further cooled investor sentiment, although this phase does not indicate the end of the IPO cycle.

Uday Patil, Executive Director at PL Capital Markets, said companies had filed IPO documents based on pricing assumptions prevailing under earlier market conditions. With sentiment having changed, issuers may now need to revise valuation expectations. However, regulatory limits on reducing issue sizes have prompted several companies to defer launches instead of cutting prices sharply.

Patil added that investors have become increasingly selective, preferring offerings at more reasonable valuations. He noted that some recent IPOs have been priced at discounts to earlier private placement valuations, reflecting current market conditions.