Since many IPOs are performing well, the appetite for IPOs will continue for some time, but the exuberance is unlikely to last. | Photo Credit: hanibaram

The pipeline of initial public offerings is expected to remain robust in the coming months with 72 corporates waiting for SEBI approval to raise about ₹1.70 lakh crore as of August-end, according to the data sourced from primedatabase.com.

Some of the companies awaiting SEBI approval for their DRHP include Mahanadi Coalfields (₹10,000 crore), Carlsberg India (₹6,300 crore), Sembcorp Green Infra (₹3,750 crore), Emerald Jewel Industry India (₹3,500 crore), Encube Ethicals (₹3,000 crore) and Veritas Finance (₹2,800 crore), it added.

Despite bearish sentiment in the secondary market, it has already been raining IPOs, with 20 companies raising about ₹12,269 crore so far in September.

Gathering pace

In fact, a record six companies listed on a single day last week after attracting demand of ₹1.4 lakh crore against an issue size of ₹7,100 crore. The rush of IPOs is expected to gather further pace this month, with SEBI extending the validity of approvals for IPOs and rights issues expiring between April 1 and September 30, 2026, until September 30, 2026.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said there is an element of irrational exuberance in the booming IPO market, as most retail investors are bidding for listing gains and therefore are not giving due importance to valuations and management quality.

Since the average returns from IPOs during the period from early June to September 7 have been 22 per cent, retail investors have been chasing IPOs, he added.

Since many IPOs are performing well, the appetite for IPOs will continue for some time, but the exuberance is unlikely to last. In fact, there are better opportunities in the secondary market, he said.

The real challenge

CA Sandeep Gupta, Director, Valmiki Leela Capital, said the real test for IPOs in the pipeline will be the willingness of issuers to launch issues at valuations that the market can absorb, and this could prompt some companies to wait for more supportive conditions.

Several 2026 listings are trading below their issue prices, showing that listing gains can no longer be taken for granted. Retail investors are increasingly paying attention to post-listing performance, which is putting greater emphasis on valuation discipline, he added.

“Jio Platforms will be closely watched given its proposed fresh issue with no offer for sale. A well-received issue at a valuation that investors find attractive will reinforce confidence across the IPO pipeline,” he said.

Anooshka Soham Bathwal, CEO & Founder of Dhanvesttor, said there has been immense liquidity and enthusiasm in the market, especially from retail investors looking for a stake in India’s success story.

However, some weak listing performances by recently listed companies have provided a reality check for investors, which should help them realise that highly sought-after IPOs and good investments do not always mean the same thing, she added.

“Investors should evaluate the business model, earnings predictability, competitive edge and, especially, valuation relative to peers. Even an excellent company can become overvalued once all future growth is priced in,” said Bathwal.

Published on September 20, 2026