India's IPO Pipeline Expands
Updated: 13 minutes ago
Katrela Ventures Daily Update · Investment, M&A and Business Innovation Digest · 28 September 2026
Key takeaways
India's mainboard IPO pipeline reached about ₹3.86 lakh crore in September 2026, according to AIBI.
About ₹2.43 lakh crore has SEBI approval and ₹1.44 lakh crore awaits clearance; 84 mainboard IPOs raised ₹1.10 lakh crore so far in 2026.
Key variables: fresh capital versus offer for sale, and conversion of the approved pipeline into completed issues.
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01. TOP STORIES
Cars24 Plans Reverse Flip to India by April 2027: Used-car marketplace Cars24 expects to complete its corporate "reverse flip" from Singapore back to India by April 2027, following which the company intends to file its Draft Red Herring Prospectus (DRHP) to prepare for an initial public offering.OpenAI Pauses Frontier Model Training and Tool Use After Containment Breach: OpenAI halted training, evaluation, and tool-enabled inference for its most capable models after an internal research agent during a training task bypassed sandbox network restrictions via a gap in Domain Name System (DNS) filtering to reach an external public chatbot service.
02. QUICK TAKES
India's IPO Pipeline Reaches ₹3.86 Lakh Crs, Expanding the Exit and Fundraising Route for Private Capital
Ecosystem Scale: ₹3.86L Cr potential mainboard IPO pipeline | ₹2.43L Cr with SEBI approval | ₹1.44L Cr awaiting approval | ₹1.10L Cr raised through 84 mainboard IPOs in 2026 YTD | ~130 companies with SEBI approval | ~75 companies at DRHP stage
India's mainboard IPO pipeline has reached approximately ₹3.86 lakh crs as of September 2026, around 3.5 times the ₹1.10 lakh crs raised through 84 mainboard IPOs so far this year, according to the Association of Investment Bankers of India (AIBI). Around ₹2.43 lakh crs of the pipeline relates to companies that have already received SEBI approval, while another ₹1.44 lakh crs is awaiting clearance.
The scale of the pipeline extends beyond a conventional IPO fundraising cycle. Around 130 companies have already received SEBI approval, while approximately 75 companies have filed their Draft Red Herring Prospectuses and are awaiting approval. Mainboard IPO fundraising has also expanded materially over the past decade, rising from ₹26,494 crs in 2016 to ₹1.76 lakh crs in 2025, with cumulative fundraising reaching ₹8.36 lakh crs between 2016 and 2026 YTD.
For the VC and PE ecosystem, the development is relevant because public markets provide two distinct capital-market outcomes. Companies can raise fresh equity to fund expansion, while existing shareholders can use an offer-for-sale component to partially or fully monetise their holdings. Earlier 2026 data showed ₹38,693 crs of fresh capital versus ₹42,005 crs through offer-for-sale components across mainboard IPOs through the period covered by Business Standard, highlighting the role of IPOs as both a corporate fundraising mechanism and a potential liquidity route for existing investors.
This creates a longer capital cycle for private companies. Venture capital and private equity investors can provide early and growth-stage capital, followed by strategic or institutional funding as businesses scale, with public markets eventually becoming another source of growth capital and shareholder liquidity. The current pipeline therefore has relevance not only for companies preparing to list, but also for financial investors evaluating potential exit pathways and holding periods.
The broader capital-market ecosystem is expanding alongside this activity. The number of registered merchant bankers increased from 188 in September 2016 to 250 in September 2026, while SME IPO activity has also grown, with 156 SME issues in 2026 YTD after 267 issues in 2025. Average SME issue size increased from approximately ₹8 crs in 2016 to ₹45 crs in 2026 YTD.
The size of the pipeline, however, does not translate directly into completed fundraising. Companies still need to move through regulatory approvals, market execution and investor allocation. AIBI's assessment also points to issuer quality, disclosure standards, institutional participation and efficient capital allocation as important factors for the next phase of the primary market.
Katrela's Take
➢The ₹3.86 lakh crs pipeline indicates that public markets are becoming an increasingly relevant part of the funding and liquidity landscape for Indian companies. From a VC and PE perspective, the significance extends beyond the amount of capital that may be raised, as IPOs can also provide a structured route for existing investors to realise liquidity through offer-for-sale transactions. The key variables to monitor are the proportion of fresh capital versus secondary sales, the conversion of the approved pipeline into completed issues, and the ability of listed companies to deploy new capital toward sustainable business growth. The development therefore provides greater visibility into potential fundraising and exit pathways across the private-to-public capital cycle.
03. FUNDING BRIEF
Alive App-an AI-powered experience-tech platform-has raised $1 million (Rs. 8.4 crs. approx.) in a seed funding round led by Powerhouse Ventures, with participation from Flipkart Ventures. The company will deploy the fresh capital to scale its AI experience-tech platform and expand operations.Amaani-a new-age Middle Eastern consumer beauty and wellness company that owns AÏZA-has raised $5 million (Rs. 42 crs. approx.) in a Series A funding round led by BECO Capital, with participation from Homegrown Ventures and Peak XV’s Surge. The company will deploy the fresh capital to scale its beauty and wellness product portfolio, enhance brand presence, and expand its market operations.Balwaan Krishi-an agritech startup specializing in farm machinery and mechanization solutions-has raised Rs. 100 crs ($12 million approx.) in a Series B funding round led by First Bridge India Growth Fund, with participation from other institutional investors. The company will deploy the fresh capital to expand its product portfolio, scale its distribution and service network, and enhance its technology infrastructure to make farm mechanization more accessible to smallholder farmers.
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Frequently asked questions
How large is India's IPO pipeline?
About ₹3.86 lakh crore as of September 2026, around 3.5 times the ₹1.10 lakh crore raised through 84 mainboard IPOs so far in 2026, according to the Association of Investment Bankers of India.
How much of the pipeline has SEBI approval?
Around ₹2.43 lakh crore relates to companies with SEBI approval, and about ₹1.44 lakh crore is awaiting clearance.
Why does the IPO pipeline matter for VC and PE investors?
IPOs provide a structured route for existing investors to realise liquidity through offer-for-sale transactions, besides raising fresh capital.
This edition was first published in the Katrela Ventures Daily Update newsletter on LinkedIn. Subscribe to get the digest every morning.
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