India’s IPO Boom Hits Record $12.5 Billion, Bigger Issues Defy Market Slump
New Delhi: Indian companies raised a record $12.5 billion through initial public offerings during January–September 2026, despite a weak stock market and sustained foreign investor selling, according to LSEG data. The nine-month fundraising total was the highest for this period since records began in 1980. The surge came even as the Nifty declined about 14 per cent, highlighting the contrast…
New Delhi witnessed record-breaking initial public offerings (IPOs) amounting to $12.5 billion between January and September 2026, according to LSEG data. This surpasses the previous record high for the same period since 1980. Despite a weak stock market and continued foreign investor selling, Indian companies demonstrated robust fundraising capabilities during this timeframe.
The Nifty index experienced a decline of around 14%, indicating contrasting performance between the primary and secondary markets. Larger IPOs played a significant role in driving the record fundraising, with proceeds increasing by 11.3% compared to the previous year. However, the number of IPOs decreased by 17.9%, falling to 220 from 268 in the previous year.
The average issue size rose to approximately $57 million, up from $42 million previously. September emerged as a standout month for mainboard activity, with 34 IPOs raising ₹39,380 crore, the highest monthly figure in 2026. Still, nearly three-fourths of proceeds came from offers for sale, meaning most funds benefited shareholders selling their shares rather than supporting company expansion.
Even with estimated foreign portfolio investor selling ranging between ₹2.7 lakh crore to ₹3 lakh crore during the period, domestic liquidity still fueled demand. Post-IPO, investor returns on debut listings cooled down, with the average listing premium falling to 15.1% from 24.4% in August, and the median premium dropping to 5.9% from 21.3%.
Broader equity market fundraising, encompassing follow-on offerings and block sales, witnessed a decline to $40.8 billion, marking a three-year low. Underwriting fees for equity offerings decreased by 9% to $415.6 million, while overall investment banking fees increased by 2% to a record $1.1 billion, buoyed by robust merger and acquisition advisory services.
Over 130 companies hold regulatory approval for IPOs, and their subsequent offerings will determine whether domestic liquidity can maintain demand amidst softer listing premiums and persisting weak market returns.
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