Can India’s market regulator sustain its momentum to make 2025 a landmark year for IPOs?
MUMBAI, Tuesday, September 9, 2025 — The Securities and Exchange Board of India (SEBI) is accelerating initial public offering (IPO) approvals, targeting a three-month clearance timeline using artificial intelligence (AI), as the country eyes record-breaking fundraising in 2025, according to regulatory sources.
India’s robust IPO market, second only to the US globally, is pivotal for economic growth in South Asia, enabling capital formation and attracting foreign investment amidst regional geopolitical challenges.
SEBI Fast Tracks IPO Approvals 2025 with AI Technology
SEBI’s push to expedite IPO approvals comes under the leadership of its new chief, Tuhin Kanta Pandey, who assumed office in March 2025. The regulator aims to approve most IPOs within three months, a significant reduction from previous timelines that could extend to six months. SEBI Chairperson Madhabi Puri Buch announced at the Association of Investment Bankers of India (AIBI) Annual Convention on Tuesday, January 21, 2025, that SEBI is developing a standardised IPO template to simplify filings. “It’s like a fill-in-the-blanks approach,” Buch said, noting that deviations from the template will trigger exception reporting to streamline reviews.
AI tools are central to this strategy, scanning documents for compliance issues, conducting online searches for red flags, and cross-checking content for accuracy. This technological shift has already reduced pending IPO applications, with only two exceeding six months as of November 2024, down from eight in March 2022, according to SEBI’s official data.
Record Fundraising in Sight
India’s IPO market is poised for a historic year. In 2024, companies raised USD 20.5 billion through IPOs, securing India’s position as the world’s second-largest IPO market, per LSEG data. For 2025, investment bankers project fundraising between INR 1.5 trillion and INR 1.75 trillion (USD 17 billion–USD 20 billion), potentially surpassing 2024’s record. “SEBI’s approach has eased pressure in a crowded market,” said Madhurima Mukherjee Saha, partner at JSA Advocates & Solicitors, on Tuesday, September 9, 2025, at 2:00 PM.
As of August 2025, large Indian firms raised USD 8.2 billion through IPOs, despite secondary market challenges driven by foreign sell-offs and US tariffs on Indian goods. Public offerings worth USD 13 billion have been approved, with USD 18.7 billion pending, according to PRIME Database.
Confidential Filings and Market Dynamics
A notable trend is the rise in confidential IPO filings, with 17 companies opting for this route in 2025, up from four between 2022 and 2024. This approach allows limited initial disclosures, facilitating faster processing. Companies like LG Electronics India, Credila Financial Services, Physicswallah, and WeWork India Management are among those with approved IPOs set to launch this year.
However, secondary market underperformance, with the Nifty 50 index up only 5% in 2025 compared to an 18% rise in MSCI’s Asia-Pacific index, poses challenges. Foreign portfolio investors sold USD 16.3 billion in secondary markets but invested USD 4.7 billion in primary markets, reflecting confidence in IPOs.
Background
India’s IPO market has matured since Reliance Industries’ pioneering public offering in 1977. Economic liberalisation in the 1990s spurred a wave of IPOs, and today’s market reflects India’s entrepreneurial energy. SEBI’s adoption of AI, initiated under former Chairperson Madhabi Puri Buch, aligns with global trends, as noted in the International Organization of Securities Commissions’ March 2025 report on AI in capital markets. The regulator’s efforts to streamline processes, including a proposed template-based IPO document system by December 2024, aim to reduce costs and enhance transparency.
What’s Next
SEBI plans to process up to 1,000 IPOs over the next two years, enabled by AI integration and regulatory easing. The regulator is introducing a standardized “fill-in-the-blanks” IPO filing template, combined with AI-supported exception reporting to identify outliers, and aims to reduce approval timelines to around three months from up to six months previously. This modernization drive is part of SEBI’s strategy to fast-track IPO approvals in 2025 and strengthen India’s position as a leading IPO market, potentially driving substantial capital inflows.
Published in SouthAsianDesk, September 9th, 2025
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