Indian Companies Raise Record $12.5 Billion via IPOs in First Nine Months of 2026

Indian primary markets scripted history during the first nine months of 2026, with domestic enterprises raising a record $12.5 billion through initial public offerings (IPOs). According to financial market data provider LSEG, this represents the highest January–September fundraising total since records began in 1980.

The historic surge in IPO fundraising stands out sharply against the headwinds seen in the secondary market. Over the same nine-month period, benchmark index Nifty 50 declined by approximately 14 percent amid severe global volatility and sustained selling by Foreign Portfolio Investors (FPIs). FPIs offloaded an estimated ₹2.7 lakh crore to ₹3 lakh crore worth of Indian equities between January and September. However, resilient domestic liquidity from domestic institutional investors (DIIs) and retail participants provided the necessary foundation to absorb the heavy pipeline of new offerings.

Key Trends Driving the IPO Boom

• Bigger Issue Sizes: Although the total number of IPO issues dropped 17.9 percent year-on-year to 220 from 268, total proceeds expanded by 11.3 percent. The average issue size climbed substantially from $42 million to roughly $57 million.
• Mega Offerings Leading: Large-scale offerings accounted for nearly 35 percent of total proceeds raised during the nine months.
• Bumper September: Primary market activity reached a crescendo in September, which saw 34 mainboard IPOs mobilize ₹39,380 crore—the highest single-month mop-up recorded in 2026.

OFS Concentration and Listing Gain Moderation

Despite the aggregate milestone, data indicates that the bulk of the capital raised did not go directly toward corporate expansion. Offers for Sale (OFS) accounted for nearly three-fourths of all proceeds, indicating that private equity sponsors and early promoters used the window primarily to secure exits or pare down stakes.

At the same time, listing day gains have started showing distinct signs of moderation:

• The average listing premium cooled from 24.4 percent in August to 15.1 percent in September.
• The median listing gain narrowed sharply from 21.3 percent to 5.9 percent over the same period, signaling growing pricing discipline among investors.

Mixed Fortunes in Broader Equity Capital Markets

The strength in initial share sales contrasted with a broader deceleration across the equity capital market (ECM) ecosystem. Total ECM proceeds—encompassing follow-on public offerings (FPOs), qualified institutional placements (QIPs), and block sales—slipped 1.7 percent year-on-year to a three-year low of $40.8 billion.

This divergence translated into mixed earnings for merchant bankers. Total investment banking fees in India edged up 2 percent to a record $1.1 billion, buoyed primarily by advisory fees from mergers and acquisitions. Conversely, equity underwriting fees slid 9 percent to $415.6 million.

Outlook Ahead

The appetite of the domestic primary market faces further scrutiny in the final quarter. With over 130 companies already possessing valid regulatory approvals from the Securities and Exchange Board of India (SEBI), market participants will closely watch whether domestic mutual fund inflows can maintain their current pace to absorb upcoming paper amid broader index volatility.

Tags: Primary Market IPO NSE Nifty 50 SEBI LSEG Investment Banking