Updated Feb 26, 2026 17:09 IST
IPO market 2026: BSE’s IPO index has fallen by about 5% so far this year…
highlights
- The IPO market has cooled down in 2026 and the BSE IPO Index has fallen by about 5%.
- Due to market correction and valuation concerns, companies are postponing their public issues.
- Although big companies have a long pipeline ready, they are waiting for the right time.
How was the response to the IPO in 2026?
So far, IPOs of 5 companies have been listed in the stock market in the first 2 months of 2026. Out of these, only one BCCL has tasted profits to the investors. Apart from this, Aye Finance, Fractal Analytics, Shadowfax Tech, Amagi media have caused losses to investors on the day of listing. Apart from this, 5 IPOs are ready to be listed on the mainboard in the primary market, which have also received a very lukewarm response from retail investors.
Read full article
After all, why are companies not launching IPO?
Actually, at present, continuous correction is being seen in the stock market. Especially the sharp decline in midcap and smallcap stocks has shaken the confidence of investors. When the secondary market is volatile, it becomes difficult for companies to determine the right price for their shares.
The success of an IPO largely depends on the mood of investors and market stability. If the shares fall after listing, the reputation of the company gets affected. This is the reason why many companies are waiting for the situation to improve.
Investors’ focus changed, distance from new shares
Investors generally avoid investing money in new listings during market downturns. At this time the focus is more on handling the old portfolio. Many investors are considering averaging in existing shares as a better opportunity, so that they can reduce their costs by taking advantage of the decline.
In such an environment, the demand for IPO automatically weakens. When there is uncertainty regarding subscription, companies also avoid taking risks. They fear that low subscription or weak listing will send the wrong message.
Valuation becomes a big headache
It is not necessary that the valuation on which companies plan before launching an IPO should match the current market situation. Investors are no longer willing to bid as aggressively as they could earlier.
Additionally, the documents and financial data filed for an IPO remain valid only for a certain period of time. If the listings get postponed, companies have to update them again. This process increases both time and cost. In such a situation, many companies are finding it better to postpone IPO instead of reducing the price.
Long queue ahead, but waiting for the right opportunity
Although the current environment is cold, the pipeline is not empty. Many big companies are preparing to enter the market. These include big names like Hero FinCorp, CarDekho, Cult.fit, Kent RO Systems, VLCC, National Stock Exchange of India, PharmEasy, Reliance Jio, Flipkart and PhonePe.
Some of these have received regulatory approval, while some are waiting for the right time. Companies do not want to put pressure on the market by crowding together. They want to enter gradually, keeping in mind the confidence of investors.
Will the IPO market heat up again?
History shows that the IPO market is cyclical. When stability and momentum returns in the secondary market, the primary market also picks up. At present the 5% decline has indicated that investors are cautious. But as soon as confidence returns in the market and valuations appear balanced, the pace of IPOs may increase again. Currently the companies have stopped their steps, but this pause is not considered permanent.
(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.)
related news
end of article
