Market Correction Halts IPO Rush in Early 2026

Public offerings have been slow in January, with only 3 companies that raised ₹4765 crore. Bharat Coking Coal Ltd, Amagi Media Labs, and Shadowfax Technologies launched before the markets. 

After ending 2025 with a record ₹1.76 trillion raised via IPOs, there is now uncertainty surrounding pricing due to intangible factors in the current volatility of equity.

The IPOs of ~200 firms remain strong despite the volatility.

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Volatility Prompts Deferrals

In recent months, as markets have fluctuated, companies have temporarily withdrawn from launching their offerings until such time as market conditions stabilise. 

Companies that hold a SEBI approved IPO must update their financial statements because of the expiration date on the draft prospectus. Companies that have received sebi approval, including Hero Fincorp, Reliance Jio, Flipkart, PhonePe, HDFC Securities, OYO, Zepto, and Boat, are currently evaluating market conditions and determining optimal timing for launching their IPOs.

Due to limited liquidity, companies may stagger their IPO launches.

Strong Pipeline Awaits Stability

There are 88 businesses that have received approval from SEBI (the Securities and Exchange Board of India) to raise at least ₹1 lakh crores - and many more companies that are expected to receive approval in the future for an additional ₹1.5 lakh crores. As such, the continued activity within the market relies heavily on the state of calm within the secondary stock markets and the overall consumer sentiment.

High-net-worth individuals (HNWI) and the participation of growing retail investors will essentially dictate the success of all future IPOs, as both groups directly relate to the overall market conditions. Potential government policy announcements or budget announcements could encourage new momentum for IPOs.

The most recent IPO listings have seen considerable weakness post-listing, which diminishes the enthusiasm created by prior launches.

Investor Shift to Valuations

Companies that had previously submitted their filings based on pricing assumptions that are no longer based on current market conditions need to revise; hence, companies are now being forced to defer their IPO submissions because the regulatory bodies do not allow for considerable price decreases.

Furthermore, the majority of retail investors are now much more selective about whether they are interested in an IPO, based on reasonable valuation rather than the valuations assigned during private placement rounds. As a result, several IPOs will now be priced at a discount reflecting current market conditions.

The successful conclusion of international trade agreements with global partners such as the United States could provide some initial momentum. The continued normalisation of the market will ultimately depend on numerous domestic and international factors.