September IPO rush draws $1 billion FPI money even as listed stocks see record outflows

In September, the Indian primary market witnessed a significant influx of funds from Foreign Portfolio Investors (FPIs) despite a surge in stock sales. FPIs invested $1 billion (₹9,676 crore) in the primary market, while simultaneously offloading $4.8 billion (₹45,537 crore) worth of equities in the secondary market. This outflow marked the highest since April 2026, when the equivalent figure was $6.7 billion (₹63,167 crore).

Of the 96 IPOs held in 2026, a substantial 34 were scheduled for September alone, signifying that one in every three IPOs this year was concentrated in a single month.

This concentration of IPO activities may lead to a slowdown in the primary market offerings in October, as companies need time to compile audited financial data for the June and subsequent quarters of the current fiscal year. However, the anticipated launch of the Jio Platforms IPO in the second half of October could offer some respite to FPIs, who have invested a total of $5.9 billion in the primary market and sold $33.7 billion worth of equities in the secondary market so far in 2026.

This stands in contrast to the previous year's figures, where the primary market saw a net inflow of $5 billion, and the secondary market experienced a staggering outflow of $22.7 billion. FPIs' continued interest in new equity papers, coupled with their propensity to offload stakes in listed counters, highlights the allure of primary markets for potential investors.