The festivity in the primary market is all set to continue for a longer period if the number of new draft red herring prospectus being filed and under the consideration of market regulator SEBI are anything to go by.

As of last month-end, SEBI is in the process of considering 57 DRHP applications and has sought clarification from another 19 companies that have already field DRHP, as per SEBI website.

This apart, in last one week, another 10 companies have filed papers with SEBI for listing on the main board, while the SME platforms of BSE and NSE are separately considering IPO applications of 21 and 18 companies.

The buoyancy in the public issuances comes on the back of large corporates queuing up to tap the market for growth capital despite the concern over the sustainability of domestic growth amid strained relationship with the US and geopolitical issues.

The fresh tariff and levy on H-1B visas imposed by the US have hit many sectors and cast a gloom over the export-oriented IT services sector, which has already laid-off employees and put new recruitments on hold.

However, the government has gone all out to boost domestic demand across sectors by cutting GST on various products, hiking DA allowances of Central government employees and providing general income tax relief to salaried employees.

This apart, the RBI had cut the repo rate (at which banks borrow from RBI) by one per cent to 5.50 per cent in the first half of this year and has enough room to reduce rates further, with inflation hovering much below the central bank’s target.

Given the recent developments, the secondary equity markets have significantly underperformed its global peers this year, marking one of its weakest performances in dollar terms in many years. However, valuations have now turned relatively attractive and the outlook for a revival in corporate earnings remains intact supported by various fiscal and monetary measures from the government.

Santosh Meena, Head of Research, Swastika Investmart said the abundant domestic liquidity has been one of the major factors for IPO rush and DRHP filing.

Institutional investors such as mutual funds and insurance companies, along with an expanding base of retail investors, have been actively participating in the markets and this has created a resilient liquidity pool, laying a solid foundation for IPO activity, he said.

“While global uncertainties persist—particularly on the tariff front—I believe Indian markets are well-positioned to outperform from here. If FIIs return amid potential US rate cuts and a weaker dollar index, momentum could accelerate meaningfully” he said.

Historically, many large IPOs are seen coinciding with market highs, as high valuations are advantageous for new capital raising and alluring exits through offers for sale, said Master Capital Services.

Even with global uncertainties such as US tariffs looming, the Indian market has managed to stay resilient with government-led capex and added consumption stimulus by GST rationalisation and lower inflation, it added.

Published on October 4, 2025