IPO Filings In March Surges To Second Highest Ever Despite Weak Investor Sentiment

The month of March clocked in as the second-highest month ever in filings of initial public offering (IPO) despite weak investor sentiment in the broader equity market. While retail investors have remained cautious during a time when markets are rattled by the ongoing Iran war, companies filing their IPO papers surged.

According to data from Prime Database, nearly 30 companies filed their draft red herring prospectus with the Securities and Exchange Board of India (Sebi) in March, aiming to raise around Rs. 60,000 crore. This comes only second to the total number of filings in July 2025, when 32 companies filed their papers to raise around Rs. 67,000 crore.

The surge in filings has also defied the recent performance of companies after listing on the exchanges. Around 65 per cent of the firms which began their debut on the Indian stock exchanges in the past year are trading below their issue prices, as per Bloomberg data. This cements the tepid investor sentiment in the market due to several global and domestic factors.

However, companies are lining up to issue their share in the market in the hopes of a turnaround in investor sentiment later in the year. Companies said that once the near-term turmoil due to the Iran war settles, the pipeline of several major IPOs could help boost investor sentiment. Several experts said that the near-term volatility in the markets could defer issuances by companies, but IPOs are still poised to see a record number of filings, and the structural demand in the primary market will turn by the end of the financial year.

Several notable large firms have shown their interest in tapping the primary market this year. SBI Funds Management, India’s largest AMC, is among the notable names that wish to issue their shares. SBI Funds Management is looking for a pure offer-for-sale (OFS) issue to part with 10 per cent of its stake worth around $1.5 billion. PhonePe is also looking to enter the primary market this year, with its IPO tentatively worth around Rs. 12,000 crore. Moreover, Manipal Hospitals is planning to raise around $1 billion. Zetwerk, PGP Glass, and Torrent Gas have also submitted their draft papers through the confidential route and plan to enter the primary market this year to raise around $450 million to $500 million.