WHEN THE IPO RUSH PAUSED: PITRU PAKSHA, A SHAKY MARKET AND WHAT COMES NEXT

By Tanya

Introduction: A Busy Market Goes Quiet

Across many years of India’s stock market, a new company seemed to be asking for investors' money every other day. October arrived as calendar flips it leaves and boom the rush had simply stopped asking bigger question why? and how?. According to Mint's report of 7 October, two things lay behind the lull: Pitru Paksha, the fortnight on the Hindu calendar set aside for remembering ancestors, and a secondary market that was sliding further the slope. Pitru Paksha ran from 26 September to 10 October, and the month had opened right after the landmark listing of the National Stock Exchange of India on 25 September

A record month followed by a not so quiet pause is not alarming in itself. What makes this one worth studying is that it exposes how India's primary market actually works: regulation, investor psychology and plain market mood all decide when a company dares to launch an issue is still a big question isn’t it?.

A September Unlike Any Other

why October feels so empty the scale of sepetmber might hold key to that question we ask upon. Data from Prime Database, reported by Financial Express, shows that 34 mainboard IPOs raised about ₹39,340 crore during the month, the highest monthly count in nearly three decades let the “three decade part” sink in.Several forces pushed companies to the starting line together.

Figure 1: Key dates around Pitru Paksha 2026. Source: author's illustration       

   SEBI had granted a one-time extension, until 30 September, to approvals that would otherwise have lapsed between April and September focus on “one-time”. Postponement of  their plans earlier in the year because of geopolitical tension, costly crude oil and weak markets, as calendar flipped through different pages and months moved on filled with wait so a backlog was waiting. And a large share of the money went to existing shareholders rather than the companies themselves: roughly 61% of mainboard IPO fundraising in 2026 up to 23 September came through offers for sale.

Is the Festival Really to Blame?

It is tempting to blame the calendar and move on isn’t it? But as a deepthinker lets uplift some layers and look beyond the surface.  Mint's own reporting cautions against that. IPOs carried on through Pitru Paksha in both 2024 and 2025, which shows that the period is not an absolute barrier to raising money. This year the difference was the backdrop. Issuers were looking at a deepening selloff, and few wanted to price a share sale into it.

Clearly the contrast can be seen in numbers and digits that follow daily through market. No mainboard IPO opened in the first nine days of October. Only two were confirmed for the following week: HD Fire Protect on 13 October, aiming for ₹712.31 crore, and Fusion CX on 14 October, aiming for ₹702 crore. So the better reading is that the festival and the falling market arrived together at nearly same, and the market did most of the damage.

Cautious Money, Selective Demand

A useful clue to further solve the mystery lies in data. Economic Times data, cited by INDmoney, shows that foreign portfolio investors put ₹9,676 crore into the primary market that month while selling shares worth ₹45,537 crore on the exchanges. In plain words, foreign funds were willing to buy fresh stories filled with hopes but not to hold on to existing ones.

Figure 2: Foreign portfolio investor activity in September 2026. Source: author's chart based on Economic Times data cited by INDmoney.

Doubt about returns after listing adds to the caution. An investment banker quoted by Mint estimated that about 65% of recently listed companies were trading below their issue price. That is an industry estimate and not a verified market-wide figure, but it explains why bankers are wary of pushing expensive valuations.

The Jio Platforms Test

All eyes now turn to Jio Platforms at stage set up for jio’s theatrical new performance. In its Mark to Market column of 19 October, Mint reported a price band of ₹1,065 to ₹1,119 per share, with an issue size of about ₹30,213 crore at the upper end, which would make it the biggest public issue in India's capital market history. At that price the column estimates a price-to-earnings multiple of about 32, and it points out that earlier mega issues such as Hyundai Motor India and the NSE have largely disappointed investors.

Figure 3: Jio's proposed issue compared with September's total. Source: author's chart based on Mint and INDmoney data.

The comparison is striking. One issue is roughly three-quarters of everything raised by 34 IPOs in September. Reports suggest the offer could open around 21 October, though that date had not been confirmed at the time of writing. If it succeeds, it could restore confidence for the large pipeline waiting behind it, which stood at 237 companies seeking about ₹4.48 lakh crore as of 25 September.

The Regulator Takes a Closer Look

Regulation is also moving. Mint reported on 19 October that SEBI plans a sub-group under its Primary Markets Advisory Committee to review the rules for mainboard IPOs and follow-on offers, with an email sent to members on 12 October. The aim is to find provisions that need clarification or change in the ICDR regulations. A separate review of SME IPO rules is under way as well. After a record month, a closer look at the rulebook is a sensible next step.

Conclusion: A Pause, Not an Ending

Put together, the story is less about superstition and more about timing. A regulatory deadline pulled issues into September, a falling market and the festival fortnight pushed them out of early October, and the Jio offer will now show how much appetite is left. Whether the boom continues depends on valuations and post-listing returns, not on the calendar.

For students and new investors, three lessons stand out. The number of IPOs says little about their quality. It matters whether the money goes into the business or into the pockets of selling shareholders. And a quiet primary market gives you time to read the prospectus carefully. This article is for learning and is not investment advice.