IPO Filings Reach Near-Record Levels in March Amidst Sustained Stock Market Downturn

India Sees Second-Highest Month for IPO Filings Amid Broader Market Caution

India has experienced its second-highest month for initial public offering (IPO) filings, despite a subdued broader equity market and cautious investor sentiment. In March, approximately 30 companies submitted draft prospectuses to the market regulator, seeking to raise around Rs 60,000 crore. This number trails only July 2025, when 32 firms sought about Rs 67,000 crore, according to data from Prime Database and NSE.

The pace of filings defies the lackluster post-listing performance of recent stock debuts. Nearly 65% of companies that started trading over the past year are trading below their issue prices, underscoring tepid secondary market conditions. However, prospective issuers are lining up in anticipation of a rebound in demand later this year.

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According to Amrendra Singh, head of equity capital markets at SBI Capital Co., war-driven volatility may delay issuance windows, but it is unlikely to undermine the structural investment case for Indian equities, with the IPO market still poised for a record year. Pratik Loonkar, managing director at Axis Capital Ltd., believes that once the current bout of volatility eases, the robust pipeline should help revive sentiment in India's presently subdued primary markets and enable the country to raise record-breaking capital before the end of this year.

Issuers are hoping for a stronger second half and that a market rebound will allow them to seize the IPO window without missing the opportunity to list, according to Pranav Haldea, managing director, Prime Database Group.