Iran war leaves Rs 3 lakh crore IPO backlog in India. Will Reliance Jio, NSE and others end the lull soon?

The muted activity comes despite a massive pipeline waiting to be tapped. Around 144 companies with Sebi approval are looking to raise nearly Rs 1.75 lakh crore, while another 63 firms aiming to raise about Rs 1.37 lakh crore are still awaiting regulatory clearance.

Together, this puts over Rs 3 lakh crore worth of IPOs in the queue.

For now, companies are choosing to wait. The Nifty has remained under pressure, investor sentiment is weak, and foreign institutional investors have been consistent sellers. The ongoing Iran conflict and sharp swings in oil prices have added to uncertainty, making it a difficult environment for companies to launch offerings.

Analysts say this is a sentiment-driven slowdown rather than a structural issue. Companies are avoiding listings in a volatile market where valuations may not hold, preferring to wait for better pricing conditions rather than rushing into weak demand.

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The pipeline includes several high-profile names that could revive primary market activity once conditions improve. Among them are the long-awaited IPO of NSE, which could raise over Rs 20,000 crore, and Jio Platforms, which is expected to be India’s largest-ever listing with a potential issue size of around Rs 40,000 crore.

NSE has already appointed 20 investment banks to manage the issue, exceeding previous records for bookrunners in Indian IPOs, along with eight law firms advising on various aspects of the transaction. It had also engaged Rothschild & Co. as an independent adviser to oversee the selection process for intermediaries.Meanwhile, Jio is working with multiple banks for the offering, which could value the company at as much as $170 billion, according to earlier estimates. At the minimum 2.5% public shareholding requirement recently permitted by regulators for large issuers, the company could raise roughly $4.3 billion (nearly Rs 40,000 crore) through the sale.

Other large offerings in the queue include Flipkart, which has shifted its holding structure to India ahead of a likely listing, asset manager SBI Funds Management, and new-age companies such as Zepto and PhonePe.

Market experts expect activity to pick up once secondary markets stabilise and foreign flows return. With such a large backlog, IPO launches could accelerate quickly once sentiment turns favourable.

According to Bhavesh Shah, managing director and head of investment banking at Equirus Capital, the current slowdown is largely sentiment-driven rather than structural. “The slowdown in IPOs is not structural but due to subdued sentiment in the secondary market,” Shah said.

“Companies are adopting a more tactical approach on whether to proceed or hold back, as investor sentiment has made issuers more calibrated about launch windows and pricing.”

Vinit Bolinjkar believes Q2 2026 could see a revival. “If secondary markets recover and FII flows reverse, the large Sebi-approved pipeline can move forward. Marquee names could accelerate the pickup,” he said. Uday Patil of PL Capital echoed a similar view. “IPO activity could strengthen in the medium to long term. The backlog means launches can happen quickly once sentiment improves,” he added.

Historically, IPO markets move in cycles. Periods of weak sentiment often lead to a pause in listings, but they also help correct valuations and bring discipline to pricing. This phase may ultimately benefit investors, as companies come to market with more realistic expectations.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)