IPO Market Cools Down as January Sees Only 3 Issues Raising ₹4,765 Crore
The Indian IPO market has witnessed a significant slowdown in January 2026, with only three companies raising ₹4,765.00 crore compared to the record ₹1.76 trillion raised in 2025. Market volatility and weak post-listing performance have dampened investor sentiment, leading companies to defer launches despite a strong pipeline of over 200 firms preparing for public offerings. While 88 companies have secured SEBI approval to raise over ₹1.00 lakh crore, experts expect activity to remain muted until market conditions stabilize.
*this image is generated using AI for illustrative purposes only.
The Indian primary market has experienced a dramatic slowdown in January 2026, with only three initial public offerings launched so far, collectively raising ₹4,765.00 crore. This represents a stark contrast to the record-breaking performance of 2025, when companies raised ₹1.76 trillion through IPOs, highlighting how market volatility has prompted companies to adopt a wait-and-watch approach.
Current Market Activity
The three companies that have braved the current market conditions to launch their public issues are:
| Company | Status |
|---|---|
| Bharat Coking Coal | Launched IPO |
| Amagi Media Labs | Launched IPO |
| Shadowfax Technologies | Launched IPO |
| Total Fundraising | ₹4,765.00 crore |
Industry experts indicate that while a few IPOs could enter the market in the coming months, many companies are likely to defer their listing plans due to continued market uncertainty. Several firms that have already received regulatory approval may delay launches as volatile conditions make pricing difficult.
Market Challenges and Investor Sentiment
Gaurav Bhandari, Chief Executive Officer of Monarch Networth Capital, explained that the slowdown in primary market activity is largely due to the meaningful correction witnessed across broader market and mid-cap indices. The 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.
Uday Patil, Executive Director at PL Capital Markets, noted that 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.
Strong Pipeline Despite Current Slowdown
Despite the current lull, the IPO pipeline for 2026 remains exceptionally strong:
| Pipeline Status | Details |
|---|---|
| Total Companies Preparing | Over 200 companies |
| SEBI-Approved Firms | 88 companies |
| Approved Fundraising Amount | Over ₹1.00 lakh crore |
| Additional Pipeline Value | ₹1.50 lakh crore (awaiting clearance) |
The pipeline includes several prominent names such as Hero Fincorp, Reliance Jio, Flipkart, PhonePe, HDFC Securities, OYO, Zepto, and Boat. These large-scale offerings indicate the underlying strength of the Indian primary market once conditions stabilize.
Market Recovery Outlook
Experts emphasize that the pace of IPO launches 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.
Vinit Bolinjkar, Head of Research at Ventura, suggested that 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.
Strategic Considerations
Some experts 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.
Additionally, muted post-listing performance of some recently listed companies has further cooled investor sentiment. Investors have become increasingly selective, preferring offerings at more reasonable valuations, with some recent IPOs being priced at discounts to earlier private placement valuations to reflect current market conditions.
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. Market experts suggest that activity may remain subdued for a few months until broader markets stabilize, unless supported by major policy or budget-related announcements.
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