India’s IPO market shows signs of a stronger second quarter in FY2026-27, with a growing pipeline of companies awaiting market entry, though market participants remain cautious about the actualisation of these listings amid valuation challenges and market stability concerns.
India’s initial public offering market appears set for a stronger second quarter of FY2026-27, as a large queue of companies waits for regulatory and market conditions to align. Axis Capital’s August market update said 146 firms have already secured approval from the Securities and Exchange Board of India and are ready to launch, while another 65 have filed draft prospectuses and are awaiting the regulator’s response. The report also said 33 companies have submitted confidential draft documents since March 2025.
The pipeline includes some of the country’s most closely watched private businesses, among them Jio Platforms, the National Stock Exchange, PhonePe, Zepto, Oravel Stays, Cult.Fit, the Indian Gas Exchange, Acevector, Imagine Marketing, Manipal Payment and Identity Solutions and Playsimple Games. Business Standard reported in April that the queue already looked sizeable, with 144 companies approved and 63 awaiting clearance at that point, underscoring how quickly the pipeline has continued to build.
Even so, market participants remain cautious about how much of that pipeline will actually reach investors. Axis Capital chief executive Atul Mehra told Moneycontrol that only about 40% of the current roster may make it to market, citing a widening gap between issuer valuation expectations and what investors are willing to pay. That caution has been echoed by other market observers, who say secondary-market stability and a steadier risk appetite will be critical if the flow of new listings is to accelerate meaningfully.
For now, the after-market performance of recent flotations is providing support for the broader case for new issuance. Axis Capital said the combined market value of 407 mainboard IPO-linked companies it tracks rose 4.89% in July to ₹64.59 lakh crore from ₹61.58 lakh crore in June, outperforming the wider equity market. Of the 12 mainboard IPOs that came in during July, nine listed at a premium, one was flat and three were still pending as of July 31.
The longer-term picture is also helping sustain interest. Axis Capital said the 407 IPOs it analysed delivered an average listing gain of 21% for retail investors, while the average return from issue price had climbed to 66% by July 31. The report said 86 companies, or 21% of the sample, were trading at more than twice their offer price, with another 50 up between 50% and 100% and 55 trading 25% to 50% above issue levels.
That resilience comes after a busy FY26 for India’s primary market. Research from Ken Research said the year saw 371 IPOs raise more than ₹1.96 lakh crore, but also noted that investors have become more selective, paying closer attention to earnings momentum, governance and promoter discipline. In June 2026, the National Stock Exchange said capital mobilisation across equity, debt and business trusts hit a record ₹3.15 lakh crore, though it also flagged a slowdown in mainboard activity in Q1FY27. Together, the figures suggest that India’s IPO market still has plenty of depth, but the next phase is likely to be more discriminating than exuberant.
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