Sebi accelerates IPO approvals as a record fundraising looms up: report

Mumbai: The Indian market regulator speeds up the approvals of initial public offers (IPOs) and encourages an already strong pipeline of stock sales that could reach a record this year, according to sources for legal and investment banking.

The Securities and Exchange Board of India (Sebi) will try to approve a majority of the IPOs within three months of submitting, according to the two sources of regulatory sources. Previously, such approvals sometimes lasted up to six months.

The shortening of IPO approval period lines is one of the changes that the new Sebi -Chef Tuhin Kanta Pandey, which took over in March, brings as part of a goal to illuminate the regulations. Unprivess requirements for companies were considerably tightened before Pandey took over the reins, which increased the timelines for companies to become public.

Sebi uses artificial intelligence to scan documents on shortcomings and to deal with trading bankers to accelerate clarifications, according to the sources of regulatory.

The supervisor has not answered an e -mail request for comments.

“In a market that is overcrowded with emptents who want to catch the right window to mention, the approach of Sebi has recently contributed to the relief of pressure,” said Madhurima Mukherjee Saha, partner at JSA Advocates & Platicitors in Mumbai. Large Indian companies have already collected $ 8.2 billion until August of this year, despite the fact that the secondary stock markets of the country will find out the Asian and emerging market squares due to foreign sale and pressure of punitive rates imposed by the US on Indian goods. “We expect around 1.5 trillion-1.75 trillion rupees ($ 17 billion- $ 20 billion) of fundraising via IPOs in 2025 possibly higher than the record-breaking fundraising that can be seen in 2024,” said Bhaveh Shah, director and head of investment bank at Equirus.

The world’s number 2 IPO market

In 2024, Indian companies collected $ 20.5 billion through public offers, making India the second largest IPO market in the world in terms of funds collected after the US after the US, has retained that position so far in 2025, according to LSEG data.

Public offers worth almost $ 13 billion have already been approved by the regulator, while another $ 18.7 billion is worth, according to data, provided by Prime Database, a primary market follow -up company.

IPOs who already have legal approvals and are expected to be on the market this year include the Indian unit of the LG Electronics in South Korea, educational financier Credila Financial Services, ED-Tech Company Physicswallah and Workspace Solutions Wework India Management.

In addition, 17 companies have opted for the confidential archiving route, which has so far made limited initial disclosures possible this year compared to only four between 2022 and 2024, according to the data.

Although the primary market remains strong despite geopolitical tensions, the prices must be “accommodation” in view of the correction in the ratings of the secondary market, said Neha Agarwal, director and head of Equity Markets Group at JM Financial.

The Benchmark Nifty 50 has so far increased by 5% this year and has considerably left most emerging market companions, with the widest index of MSCI for Asia-Pacific shares outside of Japan that rises around 18%.

This year, foreign portfolio bumpers sold shares worth $ 16.3 billion worth $ 16.3 billion, just shy for the record of $ 16.5 billion in 2022.

However, they have remained active buyers on the primary market and invest around $ 4.7 billion, according to the deliberate data.