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 between primary market activity and secondary market performance.

Larger IPOs Drive Record Fundraising

IPO proceeds increased 11.3 per cent year-on-year, although the number of issues fell 17.9 per cent to 220 from 268 a year earlier.

Average issue size rose to approximately $57 million, compared with $42 million previously. Several large offerings contributed nearly 35 per cent of total proceeds, indicating that bigger transactions powered the fundraising record.

September Sees Strong Mainboard Activity

September alone recorded 34 mainboard IPOs raising ₹39,380 crore, the highest monthly amount of 2026, according to reports.

However, offers for sale represented nearly three-fourths of proceeds. Consequently, most funds went to selling shareholders rather than supporting companies’ expansion or business requirements.

Domestic liquidity supported demand despite estimated foreign portfolio investor selling of ₹2.7 lakh crore to ₹3 lakh crore during January–September.

Listing Gains Lose Momentum

Investor returns on debut moderated in September. The average listing premium declined to 15.1 per cent from 24.4 per cent in August, while the median premium dropped to 5.9 per cent from 21.3 per cent.

Broader equity capital market fundraising, including follow-on offerings and block sales, fell 1.7 per cent to $40.8 billion, a three-year low.

Banking Fees And IPO Pipeline

Equity underwriting fees decreased 9 per cent to $415.6 million. Overall investment banking fees nevertheless rose 2 per cent to a record $1.1 billion, supported by stronger merger and acquisition advisory activity.

More than 130 companies hold SEBI approval for IPOs. Their offerings will test whether domestic liquidity can sustain demand as listing premiums soften and market returns remain weak.