Worst IPO lull in 14 months! Why 50+ firms have delayed public offers despite SEBI nod

Dalal Street's mainboard initial public offering (IPO) market -- which normally sees lakhs of retail investors participating per issue -- has witnessed a sharp slowdown amid escalating tensions in West Asia and rising global uncertainty, with nearly no mainboard IPO activity in the primary market in May 2026. This marks the first month without much mainboard public issue activity since March 2025, indicating the cautious approach adopted by companies and investors alike.

Only one mainboard REIT IPO opened for public bidding in May 2026 amid the broader slowdown in primary market activity. The Rs 3,405 crore issue comprised a fresh issue of Rs 2,390 crore and an offer for sale (OFS) of Rs 1,015 crore. The IPO opened for subscription on May 5 and closed on May 7, 2026.

Slowdown after record fundraising in IPO in FY26

The slowdown comes after a record-breaking fundraising year. During FY26, companies raised an unprecedented Rs 1.78 lakh crore through mainboard IPOs, according to Zee Business research. Fundraising activity had peaked in October 2025, when issuers collectively received Rs 45,188 crore. However, momentum has steadily weakened since then as market conditions turned increasingly volatile.

51 companies postponed their IPO launches

According to Zee Business estimates, as many as 51 companies that have already secured approval from the Securities and Exchange Board of India (SEBI) have postponed their IPO launches. Industry experts believe that this is not a result of poor business fundamentals, but rather a strategic decision and waiting for better market conditions. Concerns of rising market volatility, geopolitical uncertainty, and changes in crude oil prices have put considerable pressure on investors' sentiments.

SME IPO market remains resilient

However, amid the negative sentiment surrounding the main board, the SME IPO market has been holding firm. As many as 17 SME IPOs raised Rs 733 crore during the month of May itself. The market players attribute this stability in investor interest for SME issues to smaller issue sizes and niche business models.

The broader IPO pipeline, however, remains robust. Companies with SEBI approvals are collectively looking to raise more than Rs 2.4 lakh crore through upcoming offerings, according to Zee Business estimates. Additionally, IPO proposals worth nearly Rs 1.5 lakh crore are currently awaiting regulatory clearance, suggesting that issuers remain optimistic about tapping capital markets once conditions improve.

A reduction in listing gains is another factor that has been responsible for the low spirits in the primary market. As per the study, more than two-thirds of the stocks listed through an IPO in the year 2026 are trading lower than their listing price. Listing gains have dipped to about 8 per cent, which is the lowest since 2019.

While the near-term outlook remains challenging due to geopolitical and market uncertainties, the strong pipeline of upcoming issues indicates that IPO activity could rebound once volatility eases and investor confidence returns.

Mainboard IPOs in June 2026

After a long dry spell, two mainboard IPOs are in the pipeline in the first week of June 2026. The first one being CMR Green Technologies IPO, which opened on June 3 and will remain open till June 5, 2026. The IPO is a book-building issue of Rs 630.88 crore, which is an entirely offer-for-sale (OFS) of 3.29 crore equity shares. CMR Group is an Indian company that produces aluminum and zinc die casting alloy products.

The second one is the Hexagon Nutrition IPO scheduled to hit the primary market on June 5 and close for public bidding on June 9, 2026. The public offer is also an OFS of Rs 138.87 crore. Founded in 1993, Hexagon Nutrition Ltd is a nutrition-focused company engaged in micronutrient premixes, clinical nutrition, therapeutic formulations, and ready-to-use foods.