Indian firms defy stock market slump with record $25 billion half-year equity fundraise

BENGALURU — Indian firms have managed to raise an unprecedented $25.27 billion in the first half of fiscal 2027, despite a slump in the secondary market, data revealed on Thursday. Domestic investors were actively seeking new avenues to allocate their capital, resulting in a 75% surge in equity fundraising on a year-over-year basis from April to September, as per PRIME Database Group.

Additionally, average listing gains rose to 19% from 7%, contrary to the Nifty 50 benchmark, which only rose 1.3% during the same period. PRIME Database Group's managing director, Pranav Haldea, attributed this surprising disparity between the primary and secondary markets to a backlog of initial public offerings (IPOs) from the past 2-3 years and robust domestic liquidity.

Several high-profile IPOs contributed to the record-breaking fundraising, including NSE's $2.3 billion issuance, SBI Funds Management's $1.03 billion IPO, and hospital chain operator Manipal Health Enterprises' $960 million offering. Notably, the mainboard IPOs generated a remarkable 942.05 billion rupees across 78 issues, a 35% increase compared to the previous record set in the first half of fiscal 2026.

The surge was further fueled by the Indian market regulator granting a one-time extension for IPOs postponed due to weak market sentiment caused by the Middle East war, as many approvals expired between April and September.

Investors also sought niche opportunities in sectors underrepresented on Indian stock exchanges, with listings emerging from industries such as furniture rental (Rentomojo), supply chain asset pooling (LEAP India), and asset reconstruction companies (India). The government's extensive divestment drive, encompassing companies like Life Insurance Corp of India and Coal India, resulted in secondary stock offerings soaring fivefold to 553.37 billion rupees, with LIC alone accounting for a 6.5% stake sale worth approximately 314 billion rupees.

Qualified institutional placements also grew by 36% to 615.53 billion rupees, led by Jio Platforms' $3.8 billion IPO, Carlsberg's India business, and hotel aggregator Oyo's parent company Prism. The momentum appears to be sustaining, with nearly 250 companies set to raise about 4.65 trillion rupees through IPOs in the second half, according to PRIME Database.

However, Chief Investment Banking Officer at Emkay Global Financial Services, Yatin Singh, cautioned that unless there are major global or Indian economic changes, the surge is unlikely to diminish significantly in the upcoming half.