The Securities and Exchange Board of India (SEBI) is speeding up clearances of initial public offerings (IPOs), boosting an already strong pipeline of share sales that could hit a record this year, according to regulatory and investment banking sources.
the country’s market regulator will try to approve a majority of the IPOs within three months of filing, the two regulatory sources said. Previously, such clearances sometimes took up to six months.
Shortening IPO approval timelines is among the changes that new SEBI chief Tuhin Kanta Pandey, who took over in March, is bringing as part of a goal to ease regulation. Disclosure requirements on companies were significantly tightened before Pandey took over the reins, which increased the timelines for companies to go public.
SEBI is using artificial intelligence to scan documents for shortcomings and engaging with merchant bankers to speed up clarifications needed, the regulatory sources said.
The regulator did not answer an emailed request for comment.
“In a market that is overcrowded with issuers wanting to catch the right window to list, SEBI’s approach in recent times has helped ease the pressure,” said Madhurima Mukherjee Saha, partner at Mumbai-based JSA Advocates & Solicitors.
Large Indian companies have already raised $8.2 billion through IPOs till August this year despite the country’s secondary equity markets underperforming Asian and emerging market peers due to foreign selling and pressure from punitive tariffs imposed by the U.S. on Indian goods.
“We expect around 1.5 trillion-1.75 trillion rupees ($17 billion-$20 billion) worth of fundraisings through IPOs in 2025 – possibly higher than the record-breaking fundraisings seen in 2024,” said Bhavesh Shah, managing director and head of investment banking at Equirus.
WORLD’S NO.2 IPO MARKET
In 2024, Indian firms raised $20.5 billion via public offerings, making India the world’s second-biggest IPO market in terms of funds raised after the U.S. It has retained that position so far in 2025, LSEG data shows.
Public offerings worth nearly $13 billion have already been approved by the regulator, while another $18.7 billion worth are pending approval, according to data provided by PRIME Database, a primary market tracking firm.
IPOs that already have regulatory approvals and are expected to hit the market this year include the Indian unit of South Korea’s LG Electronics, education financier Credila Financial Services, ed-tech company Physicswallah and workspace solutions provider WeWork India Management.
In addition, 17 companies have opted for the confidential filing route, which allows for limited initial disclosures, so far this year, compared to just four between 2022 and 2024, according to the data.
While the primary market remains strong despite geopolitical tensions, the pricing will have to be “accommodative” given the correction in secondary market valuations, said Neha Agarwal, managing director and head of equity capital markets group at JM Financial.
The benchmark Nifty 50 is up 5% so far this year and has substantially underperformed most emerging market peers, with MSCI’s broadest index for Asia-Pacific stocks outside Japan rising about 18%.
Foreign portfolio investors have sold shares worth $16.3 billion in the secondary market this year, just shy of the record $16.5 billion outflows seen in 2022.
However, they have remained active buyers in the primary market, investing around $4.7 billion, as per depository data. ($1 = 88.1090 Indian rupees)