Synopsis

September 2025 marked a significant increase in Draft Red Herring Prospectuses submitted to Sebi with 55 submissions. Companies with a March 31 fiscal year end rushed to file before the September 30 deadline. Failing to meet this deadline could complicate their IPO plans, requiring updated audits and due diligence. The IPO market has surged since July, recovering from previous delays in activity.

Mumbai: More than 50 companies filed Draft Red Herring Prospectuses (DRHPs) with the Sebi in September, making it the busiest month in a year for such submissions. In September 2025, 55 companies had made filings, including confidential ones.

Experts suggest the rush is being driven by a regulatory deadline. Sebi allows companies with a March 31 fiscal year end to use their audited annual results in a DRHP only until September 30. After that, issuers need to update their filings with recent financials, adding to the work involved and potentially delaying the IPO process.

ET Bureau

"Securities regulations require the audited financials in the offer document to be no more than six months old," said Venkatraghavan S, managing director, equity capital markets, Equirus Capital. "So companies whose last audit was as of March 31 will want to file their DRHPs before September 30."

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Among those that have filed DRHPs are Mahanadi Coalfields, Knack Global, Rudra Cottex, Valuedrive Technologies, Jai Parvati Forge, Abakkus Asset Manager, Claroid Pharma, JSW One Platforms, Airiq 365, Mount Everest Breweries, J Infratech, Arate 22, Deon Energy, Jagatjit Agri Engineering, Goldi Solar, Assetgro Fintech, Wadhwagroup Holdings, Biocon Electric and Royal Chains.

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Missing the September 30 deadline can require companies to commission a fresh stub-period audit, refresh due diligence and extend the IPO process, said Ratiraj Tibrewal, director at Choice Capital Advisors. The same cycle makes March another peak month for companies filing with September half-year financials.

This rush has been intensified by IPO activity returning after a period of market volatility, with several deals delayed since April now coming back to the market, he said. India has seen a sharp rise in IPO launches since July. The latter month saw 12 IPOs raising ₹28,650 crore. In August, 23 IPOs raised ₹22,452 crore and 34 IPOs raised ₹39,400 crore in September.

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