IPO pipeline robust with 245 DRHPs filed with Sebi, 175 receive observations: Equirus

India’s IPO market is gearing up for a busy schedule, with 245 companies having filed their draft red herring prospectus (DRHP) with Sebi, out of which the market regulator has already sent observations to 175 firms, according to Equirus.

In its latest Equity Capital Markets Tracker - June 2026 report, Equirus Capital said India's equity capital markets continue to demonstrate resilience amid global uncertainties, supported by strong domestic investor participation, a healthy pipeline of companies preparing to go public and improving market sentiment.

Out of the total 245 DRHPs that have been filed with the market regulator, 70 draft papers are awaiting observations while 39 are scheduled to expire by September, 45 by December and the remaining 91 thereafter, the report added.


How India's IPO market performed in June

June was a busy month for IPO investors, showing signs of recovery after a period of moderation, aided by easing macroeconomic uncertainty following the US-Iran ceasefire framework, the report noted, adding that while issuance volumes remain below the peak witnessed in September 2025, issuers have gradually begun returning to the primary market as market conditions stabilised.

This came on the back of resilient domestic investor participation. Monthly SIP inflows remained close to Rs 31,000 crore through June, compared with Rs 28,464 crore a year earlier, helping cushion foreign institutional investor (FII) outflows, which widened to around $5 billion during the month even as broader risk sentiment improved, the report said.

Looking at broader market trends, Equirus noted that FY26 marked the strongest year for India's IPO market over the past three financial years in terms of both the number of issues and capital raised. While subscription multiples moderated from the exceptionally high levels recorded in FY25, investor appetite remained healthy, it said. The Rs 1,000-1,500 crore IPO segment delivered the strongest listing performance during FY26, indicating a growing preference among investors for companies with stronger earnings visibility over smaller, sentiment-driven offerings, it added.

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Which sectors see biggest fundraising?

Sector-wise, Equirus in its report identified media, consumer and healthcare (MCH) as the largest fundraising segment over the last 12 months, mobilising more than Rs 1.12 lakh crore, followed by industrials at around Rs 82,800 crore and BFSI at over Rs 71,300 crore.

Interestingly, it noted that while fundraising across MCH, BFSI and industrials was largely driven by Offer for Sale (OFS) transactions, the infrastructure sector recorded the highest proportion of fresh issues, with nearly 72% of funds raised through fresh issues, reflecting continued demand for growth capital. In contrast, IT or telecom remained the most monetisation-led segment, with nearly 79% raised through OFS.

This came amid the growing role of institutional investors in supporting the primary market, according to Equirus. Foreign Portfolio Investors (FPIs) invested Rs 40,396 crore through anchor books over the past 12 months, making them the largest anchor investor category, closely followed by mutual funds at Rs 36,439 crore. Insurance companies invested Rs 8,456 crore while financial institutions and banks contributed Rs 7,565 crore, reflecting broad-based institutional participation in IPOs, it said.

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Beyond IPOs…

Beyond the primary market, Equirus highlighted that Indian equities outperformed several major global markets during June 2026. The benchmark index Nifty 50 delivered a 2.07% monthly return, outperforming markets such as the US and China, supported by easing geopolitical tensions and stable domestic macroeconomic conditions.

Overall, the report indicated that a combination of resilient domestic liquidity, sustained institutional participation and a robust IPO pipeline provides a constructive backdrop for India's equity capital markets in the months ahead.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)