India’s IPO Market Thrives: 70+ Firms Await SEBI Nod

India’s Initial Public Offering (IPO) market is exhibiting robust resilience, with 175 companies currently holding valid SEBI observations for their draft papers. An additional 70 firms are also awaiting regulatory clearance, according to a recent report by Equirus.

Key IPO Market Figures

• 175 companies: Hold valid SEBI observations for draft IPO papers.
• 70 firms: Currently awaiting regulatory clearance from SEBI.
• FY26 Mainboard Issuance: Reached a three-year high in both deal count and capital mobilized.
• Rs 1,000-1,500 crore: Range for mid-sized IPOs, which were top performers in FY26.
• Rs 40,396 crore: Committed by Foreign Portfolio Investors (FPIs) as anchor investors.
• Rs 36,439 crore: Invested by domestic mutual funds.
• 72%: Fresh-issue orientation in the Infrastructure sector.
• 79%: Of funds raised in IT/Tech/Telecom segment comprised of Offer For Sale (OFS).

Market Activity Surges

The Equirus report highlights a sharp increase in overall IPO activity observed in September 2025. This surge is primarily attributed to robust market conditions and strong domestic inflows, setting the stage for significant public offerings.

Larger IPOs are expected to be concentrated within the October-November 2025 window, indicating a sustained momentum in the market. Mainboard issuance specifically reached a three-year high in FY26, both in terms of the number of deals and the total capital mobilized.

Investor Preferences and Sectoral Performance

Investor preferences in FY26 leaned towards mid-sized IPOs, particularly those raising between Rs 1,000-1,500 crore, which emerged as the top performers. This trend suggests a strong appetite for companies demonstrating clear earnings visibility.

Fundraising efforts were led by the Media, Consumer, and Healthcare (MCH) sector, securing the largest share of capital. This was closely followed by the Industrials and BFSI sectors, reflecting diverse investment interests across the economy.

Capital Inflows and Investment Dynamics

Foreign Portfolio Investors (FPIs) played a crucial role, acting as the largest anchor investors by committing Rs 40,396 crore. This substantial investment signals a robust global risk appetite for India’s high-growth sectors.

Domestic mutual funds also contributed significantly, investing Rs 36,439 crore in these offerings. The report details distinct fundraising approaches across sectors, with infrastructure focusing heavily on fresh issues.

• Infrastructure sector: Showed the strongest fresh-issue orientation at 72%.
• IT/Tech/Telecom segment: Was predominantly monetisation-led, with Offer For Sale (OFS) comprising approximately 79% of the funds raised.

The sustained pipeline of companies awaiting SEBI clearance, coupled with strong investor interest and robust market conditions, underscores the enduring strength of India’s IPO ecosystem. This indicates a positive outlook for capital markets in the near future.