India IPO market slows amid Pitru Paksha, secondary correction
No new mainboard initial public offerings are scheduled this week in India, following a record ₹94,205 crore raised in the first half of FY27.
India's IPO Market Experiences Lull
India's equity capital markets, a global hub for primary listings, are experiencing a slowdown in new offerings. This pause coincides with Pitru Paksha, an inauspicious fortnight in the Hindu calendar dedicated to deceased ancestors, which began on 26 September and concludes on 10 October.
This current lull contrasts sharply with 2024 and 2025, when IPO activity continued during Pitru Paksha, demonstrating it was not an absolute barrier to primary-market fundraising then. After an active start to September, which included the National Stock Exchange of India Ltd's landmark listing on 25 September, October has begun quietly.
Secondary Market Selloff Deters Issuers
The current quiet period is further exacerbated by a deepening selloff in the secondary market. The Nifty index, which closed around 22,400 in the week ending 1 October, has recorded eight consecutive weekly declines, marking its longest losing streak in 25 years.
The benchmark index now stands approximately 15% below its January 2026 peak, with about 81% of Nifty 500 stocks trading below their 50-day averages. Volatility also surged by nearly 19% last week.
Weak investor demand has left roughly 65% of newly listed companies trading below their issue prices, discouraging retail and high-net-worth investors, who typically provide listing-day liquidity. The Reserve Bank of India's 25 basis point repo rate hike on Wednesday, the first since February 2023, further tightens monetary policy.
Mixed Performance for Recent Listings
Despite the broader slowdown, some companies did launch IPOs during the current Pitru Paksha period.
These included Carlyle-backed Varmora Granito Ltd, Hillhouse-backed Elevate Campuses Ltd, Accel-backed Moneyview Ltd, Runwal Enterprises Ltd, Snapdeal parent Acevector Ltd, and Orient Cables (India) Ltd. Moneyview and Orient Cables recorded significant listing day gains of 58% and 49% respectively.
However, Elevate closed its debut day with an 11% decline, and Acevector saw a 19% drop. In contrast, 2025 saw IPOs like Urban Company Ltd and Dev Accelerator Ltd open during Pitru Paksha, with subscriptions ranging from 1.4x to 103.6x and listing gains from -4.7% to +57.5%.
Substantial Pipeline Awaits Favourable Window
While public subscription windows are currently closed, regulatory processes continue, with the Securities and Exchange Board of India (Sebi) and stock exchanges reviewing offer documents. Approximately 144 companies hold valid regulatory approvals, representing ₹1.75 trillion in cleared capital, and are awaiting suitable launch windows.
The total mainboard pipeline is substantial, comprising 200 to 250 companies aiming to raise up to ₹5 trillion. Issuers are expected to re-evaluate their launch timings once Pitru Paksha concludes and the festive period of Navratri begins, with major offerings such as the potential ₹35,000 crore Jio Platforms Ltd IPO keeping dealmakers busy.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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