India’s $26 Billion IPO Plans in FY26 Face Reality Check – Reliance Jio and NSE Brace for Impact

The Indian IPO market, which saw robust fundraising in FY25, has started FY26 on a cautious note. Despite a strong pipeline of upcoming public offerings, the market has witnessed no fresh listings in the first week of the new financial year. However, four SME IPOs, including Desco Infratech, are set to make their stock market debut soon, bringing some activity to the otherwise slow start.

Major companies such as Reliance Jio, Zepto, and LG Electronics are in the process of finalising their listing plans, with the total IPO pipeline estimated to be worth nearly ₹2 lakh crore ($26 billion) in FY26.

SME IPOs Set to Debut This Week

4 SME IPOs are set to debut this week, with Desco Infratech listing on the BSE SME platform on April 2. Its IPO was subscribed 83 times, and shares are trading at a 3% premium. Shri Ahimsa Naturals and ATC Energies will debut on April 3, with Shri Ahimsa’s IPO subscribed 60 times. The company deals in caffeine anhydrous and herbal extracts, while ATC Energies manufactures lithium-ion batteries for energy storage. Identixweb, also debuting on April 3, adding momentum to the IPO market.

Will the IPO Market Rebound in FY26?

FY25 saw an impressive run in the primary market, with companies raising around ₹1.48 lakh crore. The first half of the fiscal year alone saw fundraising nearly double to ₹51,365 crore, while the second half witnessed an even stronger performance, with ₹97,160 crore being raised. Hyundai played a significant role in driving this momentum in the latter half of the year.

However, as the secondary market faced corrections and investor sentiment weakened, many companies postponed their listing plans. The start of FY26 has reflected this trend, with no major IPOs hitting the market in the first week.

Companies such as Reliance Jio, LG Electronics, and the National Stock Exchange (NSE) are expected to launch their IPOs, potentially making FY26 a landmark year for fundraising. However, these companies will need to ensure realistic valuations and strong fundamentals to attract investors in an increasingly cautious market.

Challenges Ahead for India’s $26 Billion IPO Pipeline

While the IPO pipeline looks promising, several challenges could impact the listing plans of major companies. Market volatility, global economic uncertainty, and concerns over high valuations may dampen investor enthusiasm. Additionally, regulatory scrutiny and evolving market dynamics could further influence the pace and success of IPOs.

Reliance Jio’s highly anticipated IPO, for instance, is expected to generate massive investor interest, but concerns over valuation and competitive pressures in the telecom sector could impact demand. Similarly, NSE’s highly anticipated IPO may face a delay of up to 2 years due to regulatory concerns raised by SEBI. While some issues are unrelated to the IPO, NSE must address these hurdles before proceeding.

Conclusion

The IPO market has always been a reflection of broader market sentiment. If the stock market stabilises and investor confidence strengthens, FY26 could see record-breaking fundraising activity.

While the start of the year has been slow, the pipeline of upcoming IPOs remains strong, and several high-profile listings could drive momentum in the coming months. For investors, the key will be to focus on fundamentally strong companies with sustainable growth prospects.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.