IPO Pipeline: ₹1.75 Trillion Waits on SEBI Relief

IPO Pipeline Gets a Lifeline — But Is the Market Ready? SEBI's one-time extension of observation letter validity through September 30, 2026 isn't a small procedural tweak. It's an acknowledgment that something has gone wrong. Over two dozen companies sitting on ₹1.75 trillion in approved but unlaunched IPOs couldn't find their window. Eighteen of them let approvals lapse entirely in FY26. That's not a coincidence — that's a signal. The regulatory shift buys time. It doesn't buy confidence. The distinction matters enormously for anyone trying to read what comes next in India's primary markets. The backstory is straightforward: weak post-listing performance across several high-profile IPOs through late 2024 and early 2025 spooked promoters and their bankers. If your stock opens at a discount and trades sideways for six months, the incentive to wait is obvious. SEBI's extension essentially tells those waiting companies: the clock isn't your enemy right now. Take the time. Watch the market. But don't let another approval expire. Which Banks and NBFCs Stand to Gain The primary market revival — whenever it comes — flows directly into fee income for the institutions running these deals. [ICICI Bank](/stock/ICICIBANK) (NSE: ICICIBANK) and [HDFC Bank](/stock/HDFCBANK) (NSE: HDFCBANK), through their investment banking arms ICICI Securities and HSBC-HDFC partnerships, have meaningful exposure to IPO-related advisory and anchor placement activity. [Axis Bank](/stock/AXISBANK) (NSE: AXISBANK) similarly benefits through Axis Capital, which has been active in mid-market mandates. This isn't transformational fee income for a bank the size of HDFC. But it's directionally positive. Investment banking fees across the IPO segment can run 1.5% to 3.5% of issue size depending on deal complexity. On a ₹1.75 trillion pipeline, even if 40% gets executed before September 2026, the fee pool across lead managers could approach ₹10,500–24,500 crore in aggregate — split across syndicates, ...