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Below Comment on SEBI extending deadline for IPOs till Sep by Ratiraj Tibrewal, CEO of Choice Capital Advisors

SEBI’s extension provides significant relief to companies that delayed or reconsidered IPO plans amid volatile markets, as it removes the earlier pressure to either proceed in uncertain conditions or let approvals lapse and restart a costly process. It allows issuers to better time the market, protect valuations, and avoid weak listings while ensuring continuity in capital-raising plans without additional regulatory burden. Companies that had only delayed can now re-time their offerings without fresh approvals, while those that withdrew benefit indirectly through a more supportive environment, encouraging re-entry with more realistic pricing and calibrated issue sizes, ultimately enabling a more strategic, market-aligned approach.

The extension, along with easing geopolitical tensions, creates a constructive backdrop for a revival in IPO activity, with these ~40 companies forming a ready pipeline that can tap the market as sentiment improves. However, the recovery is likely to be gradual rather than immediate, as institutional investors remain selective and capital allocation more disciplined, leading fundamentally strong companies to drive the initial wave while others adopt a wait-and-watch approach. Overall, 2026 is expected to witness a steady reopening of the primary market, supported by improving macro stability and a backlog of prepared issuers.

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