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Issue of 20 September 2026  /  Fortnightly8 min read

The Unlisted Letter

September has been one of the busiest IPO months we have seen, even as the broader market slipped on expensive crude and fresh tariff threats from the US. Here is what the primary market raised, why the IPO rush makes the unlisted market buzz, the names our investors are asking about, and where we think markets go next.

01
IPO market update

September’s mainboard IPO haul

Raised via 25 mainboard IPOs, 1–24 September
₹35,917 Cr

Excluding the NSE mega-issue, the other 24 companies are raising ₹13,356 Cr. That is roughly one new mainboard IPO every working day of the month.

Closed / listed17 IPOs
₹9,389 Cr
Open nowNSE and Sonaselection
₹22,703 Cr
Opening this week6 IPOs
₹3,825 Cr

The headline number is dominated by the National Stock Exchange (NSE) IPO, a ₹22,562 Cr issue priced at ₹1,700–1,785 that closes on 21 September. On its own it is larger than the other 24 IPOs of the month put together.

NSE has been one of the most traded names in the unlisted market for years. Its listing is a milestone for unlisted investors, because it shows how a company that spends a long time in the unlisted space eventually reaches the exchange.

Behind NSE sits a deep pipeline of mid-sized issues across real estate, education, auto, retail, engineering, chemicals and fintech. When so many companies choose the same month to list, it tells you promoters and bankers believe investor demand is strong enough to absorb them, even in a falling market.

Largest issues of the month (excluding NSE)
CompanyOpensIssue size
Elevate Campuses23 Sep₹2,100 Cr
Rentomojo9 Sep₹1,256 Cr
Kanohar Electricals8 Sep₹1,056 Cr
Hero Motors16 Sep₹1,000 Cr
Karamtara Engineering9 Sep₹875 Cr
Issue sizes at the upper end of the price band. Purple Style Labs (₹680 Cr), which opened on 31 August, is not included.

Where does the IPO money actually go?

An IPO has two parts. In a fresh issue, the company creates new shares and keeps the money to expand, repay debt or build plants. In an offer for sale (OFS), existing shareholders such as promoters, private equity funds and early investors sell part of their stake, and the money goes to them, not to the company.

All 25 IPOs₹35,917 Cr
21%79% OFS
Excluding NSE₹13,356 Cr
58% fresh42% OFS
Fresh issue: ₹7,727 Cr goes to companiesOffer for sale: ₹28,190 Cr goes to existing shareholders

NSE’s IPO is entirely an offer for sale, so nearly four out of every five rupees raised this month went to existing shareholders cashing out. That is the other side of an IPO boom: it is the exit window for the people who invested early, often while the company was still unlisted. It is exactly the position we want our investors to be in, which brings us to the next section.

What this means for you

A busy IPO calendar is a selling opportunity for early investors, not automatically a buying opportunity for late ones. If you hold pre-IPO shares, this is the environment in which valuations get rewarded. If you are looking to buy, look further down the pipeline.

02
Investor education

By the time a DRHP is filed, the easy money is usually made

Every IPO wave brings a wave of interest in the unlisted market. When investors watch company after company listing, they start believing their own pre-IPO holdings will be next, and demand for anything with an IPO story picks up.

The mistake we see most often, especially among retail investors, is buying a company only after it has filed its DRHP. At that stage the IPO is public knowledge, the unlisted price has already run up, and the alpha of the unlisted market is largely gone.

Pre-IPO shares carry a 6-month lock-in after listing, so you cannot exit on listing day even if the stock pops.

Case study: SBI Funds Management

Price per share, adjusted for bonus
Unlisted, 2022₹180
Unlisted peak~₹800
IPO price~₹574

Investors who bought at a sensible valuation in 2022 and booked profits when unlisted prices ran to around ₹800 made roughly 4x. Those who chased the stock near the top found the IPO priced about 28% lower than what they paid, and still had a lock-in to sit through.

First, six terms you should know

DRHP
Draft Red Herring Prospectus. The document a company files with SEBI when it formally starts its IPO process. Once it is filed, the whole market knows an IPO is coming.
Lock-in
Anyone who holds shares before the IPO cannot sell them for 6 months after listing. Your money is stuck even if the share price falls after listing.
Book building
How the IPO price is set. Large institutions bid for shares, and the price band is fixed based on what they are willing to pay, not on unlisted market prices.
Alpha
The extra return you earn over the market for taking extra risk early. In unlisted shares, most of the alpha comes from buying before the crowd notices.
Mainboard IPO
An IPO on the main NSE or BSE platform, as opposed to the SME platform for smaller companies, which has a longer 1-year lock-in for pre-IPO shares.
Indicative price
The approximate level at which recent unlisted deals have happened. Unlisted shares have no exchange, so there is no single official price.

The life of a pre-IPO share, and where the money is made

Most companies go through the same five stages on the way to listing. The price behaviour at each stage is remarkably similar across companies.

  1. 3+ years before IPO
    Quiet accumulation

    Few people track the company. Prices are reasonable, liquidity is low and patience is needed.

    Best risk-reward
  2. 1–2 years before
    Growth shows up

    Profits grow, the board adds independent directors, bankers get appointed. Prices start to rerate.

    Still good
  3. DRHP filed
    Buzz peaks

    News coverage and retail demand surge. Unlisted prices often overshoot what the IPO will pay.

    Late entry
  4. IPO
    Price reset

    Institutions set the price through book building. It is frequently below the unlisted peak.

    Alpha gone
  5. 6 months after listing
    Lock-in ends

    Pre-IPO holders can finally sell. Heavy selling around this date can pressure the price.

    Exit window

Why does the IPO often come in below the unlisted price?

The unlisted market is thin

There are only a few buyers and sellers at any time. When IPO excitement builds, a small rush of buyers can push the price far above fair value because very few holders are willing to sell.

Institutions price with discipline

Mutual funds, insurers and foreign funds bid in the IPO. They compare the company with listed peers and will not overpay, so the IPO price reflects their valuation, not the unlisted mood.

Companies leave something on the table

Promoters and bankers usually price an IPO so that it lists well. A strong listing protects the company’s reputation, which means a conservative price rather than the highest possible one.

Late buyers carry lock-in risk

If you bought near the top, you cannot sell for 6 months after listing. Any correction during that period is fully borne by you, with no way out.

Our rule of thumb
Enter the unlisted space 2–3 years before an IPO, at the right valuation, and be willing to exit when valuations turn absurd.

How do you spot a company 2–3 years before its IPO?

  • Consistent profit growth over three to four years, not just one good year.
  • A large, growing sector where listed peers already trade at healthy valuations.
  • Institutional investors on board, such as private equity funds or a well-known parent group.
  • Governance clean-up: independent directors, a Big-4 or reputed auditor, conversion to a public limited company.
  • Capital restructuring such as a bonus issue or share split, which companies often do to prepare for listing.
  • Management talking about listing in annual reports or AGMs, before any DRHP is filed.
What this means for you

Treat a DRHP filing as the start of your exit planning, not the start of your buying. Build positions when a company is still quiet, and use the IPO buzz to book part of your profits at stretched valuations.

03
On our radar

Names buzzing in the unlisted market

Four companies have drawn the most enquiries from our investors this fortnight. Each sits on a clear structural tailwind, and none has yet reached the frenzy stage that usually follows a DRHP filing. For each one we explain what the company does, why it is in focus, and what you should keep an eye on.

MT

MTandT Rentals

Equipment rental / infrastructure

India’s largest pure-play aerial work platform (AWP) and ground-protection mat rental company by fleet size. Think of the scissor lifts and boom lifts used to work at height inside factories, airports and metro stations, which it both rents out and sells.

  • How it earns: Two ways. Mainly, it buys expensive equipment once and rents it out repeatedly, so rental income depends on how much of the fleet is on rent. It also sells machines outright to customers who prefer to own them, which brings in upfront revenue alongside the recurring rental stream.
  • The tailwind: India’s infrastructure and manufacturing build-out, plus stricter safety norms that push contractors away from bamboo scaffolding towards proper access equipment.
  • Background: Part of the MTandT Group founded in 1974, carved out as a standalone rental business in 2009.
Keep an eye on: fleet utilisation, the mix between rental and sales income, and debt. Rental is capital-heavy, so growth needs borrowing and a slowdown in construction hits both rentals and machine sales.
Check indicative price
PA

Prisma Global (Prism AI)

Computer vision AI

Its Gryphos platform adds face recognition and object detection to camera networks a customer already owns. Uses include banking authentication, traffic enforcement and airport baggage scanning.

  • Growth: Revenue grew 64% to about ₹1,119 Cr in FY26, and profit rose from ₹14 Cr in FY24 to ₹44 Cr in FY26.
  • Model: It owns the AI platform and customer contracts, and outsources most delivery work to partners.
  • The tailwind: AI adoption in security, identity and public infrastructure is one of the fastest-growing tech themes worldwide.
Keep an eye on: valuation (P/E near 98), all revenue coming from overseas with five clients making up 73% of it, and borrowings. Read our full research note before investing.
Check indicative price
PP

PPFAS Asset Management

Mutual fund AMC

The asset management company behind Parag Parikh Flexi Cap, one of India’s most popular equity mutual funds, known for its long-term, value-conscious investing style.

  • How it earns: A small annual fee on every rupee it manages. As assets grow, profits grow faster because costs stay relatively fixed.
  • The tailwind: Monthly SIPs have made mutual funds a habit for millions of Indian households, and that money keeps compounding.
  • Precedent: The SBI Funds journey above shows how strongly the market values a well-run AMC once it lists.
Keep an eye on: dependence on one flagship fund, and the fact that AMC earnings fall when markets fall, since fees are linked to asset values.
Check indicative price
GE

GFCL EV Products

EV battery materials

A subsidiary of Gujarat Fluorochemicals that is building a domestic supply chain for the chemicals and materials that go inside lithium-ion batteries.

  • Why it matters: India imports most of its battery materials today. Every EV and energy-storage cell made in India needs a local supplier.
  • The tailwind: Government incentives for local cell manufacturing, rising EV sales and large grid-storage projects for solar power.
  • Parent strength: Backed by an established listed fluorochemicals group with chemistry expertise.
Keep an eye on: this is an early-stage, capex-heavy business. Returns depend on plants scaling up on time and on competition from Chinese suppliers.
Check indicative price
Latest indicative prices are updated daily on www.unlistedzone.com. Mention of a company is not a recommendation to buy or sell.
What this means for you

A strong tailwind is where to start, not where to stop. Before buying any unlisted share, check the valuation against listed peers, the debt, and how you would exit if an IPO takes longer than expected.

04
Market view

Crude and tariffs weigh on Dalal Street

Sensex
▼ 3.4%
76,942 → 74,295
Nifty 50
▼ 3.0%
24,056 → 23,346
Crude oil ($/barrel)
$100+
from the mid-$80s on 1 Sep

Why expensive oil hurts India more than most

India imports more than 85% of the crude oil it uses, and its demand keeps growing every year with more vehicles, flights and factories. So when oil moves from the mid-$80s to above $100 a barrel, the effect travels through the whole economy:

Crude above $100→Bigger import bill→More dollars needed→Weaker rupee→Higher inflation→Rate cuts delayed→Foreign investors cautious
Usually hurt by high crude

Oil marketing companies, airlines, paints, tyres, chemicals and logistics, all of which use oil or its by-products as a key input.

Usually hold up better

Oil producers and upstream companies, and exporters such as IT and pharma that earn in dollars and gain when the rupee weakens.

The tariff threat from Washington

On 18 September the US President signed the Sanctioning Russia and Iran Act of 2026. The law allows the US to impose tariffs of up to 100% on goods from the largest buyers of Russian oil and gas, a list that puts India directly in the line of fire.

In simple terms, a 100% tariff would double the price of Indian goods in the US market, which would hit exporters of textiles, gems and jewellery, engineering goods and auto components. But the law gives the President wide discretion over which countries are targeted, at what rate, and whether to grant waivers. It takes effect within 30 days, during which US trade officials will recommend targets and rates.

That is why markets are nervous but not panicking. What they are pricing today is uncertainty, not a confirmed 100% duty. A negotiated outcome, for example a lower tariff in exchange for India reducing Russian oil purchases, remains possible.

Our view

Much of this is event risk. The US goes to the polls for its mid-term elections on 3 November, and trade rhetoric tends to be loudest in the run-up to an election. Once the elections are behind us, we expect the tone to cool, crude to find a more stable range, and Indian markets to recover.

For unlisted investors, a softer listed market is not all bad news. Unlisted prices often take their cue from listed peers, so market corrections can throw up better entry valuations in quality pre-IPO companies.

Index levels are closing values on 1 September and 18 September 2026 (last trading session before 20 September).
What this means for you

Avoid panic selling on headlines. Use this phase to build positions gradually in companies you understand, and keep some cash aside in case the tariff news gets worse before it gets better.

Looking for companies still 2–3 years from an IPO?

Browse 271+ unlisted, pre-IPO and ESOP shares with research and daily indicative prices, or speak to our team.

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Happy investing,
Team UnlistedZone