Mainboard IPO Fundraising Hits Record Rs 84,400 Crore in H1 FY27 Driven by Strong DII Inflows
India's mainboard initial public offering (IPO) market delivered an unprecedented performance in the first half of financial year 2026–27 (H1 FY27), mobilising a record ₹84,400 crore. According to a report titled India IPO Market: H1 FY27 and Q2 FY27 Review by consultancy firm Grant Thornton Bharat, total fundraising increased by 30% year-on-year from ₹64,900 crore raised in H1 FY26.
The surge was driven by 71 companies entering the public market between April and September 2026, compared with 55 listings during the corresponding period of the previous fiscal year. Primary market momentum accelerated dramatically after a relatively muted start to the fiscal year, with nearly 94% of the first-half funds mobilised in the July–September quarter (Q2 FY27) alone.
September Sets an All-Time Monthly Record
Activity peaked in September 2026, which emerged as the busiest month in Indian primary market history. During the month, 32 companies floated mainboard issues, raising a cumulative ₹40,400 crore. This single-month tally accounted for nearly half of the entire second-quarter mobilisation.
Investor appetite remained elevated throughout the six-month period, reflecting in stronger subscription numbers and first-day returns:
- The average listing-day gain improved to 18%, up from 10% in H1 FY26.
- Average retail oversubscription climbed to 28 times, compared with 25 times in the year-ago period.
Sectoral Distribution of Capital
The composition of issuers showed strong interest in financial expansion and industrial manufacturing. Financial services dominated in terms of issue size, while capital goods issuers led the league tables by volume.
Sectoral Highlights:
- Financial services accounted for 43% of the total ₹84,400 crore raised in H1 FY27.
- Capital goods led by transaction count, clocking 15 separate mainboard IPOs.
DIIs Counter Secondary Market Weakness
A key factor supporting the record supply of paper was the liquidity provided by Domestic Institutional Investors (DIIs). DII net inflows stood at ₹1.69 lakh crore during Q2 FY27, dwarfing Foreign Portfolio Investor (FPI) inflows of ₹13,900 crore over the same period.
This sustained domestic support cushioned the primary market, allowing investors to absorb large offerings even as the benchmark NSE Nifty 50 contracted 5.7% during September.
"India's IPO market moved from caution to acceleration in Q2 FY27, helping deliver a record first half," said Karan Marwah, Partner and Capital Markets Advisory Leader at Grant Thornton Bharat. "While the scale of fundraising shows the market can absorb new issuance, investor demand stayed selective and increasingly focused on fundamentals, pricing, governance and the use of proceeds."
Primary Market Pipeline
Looking ahead, the issuance pipeline remains active, with 100 mainboard companies and 159 small and medium enterprise (SME) players filing draft offer documents during H1 FY27. However, analysts caution that conversion of draft filings into final listings will continue to depend on pricing discipline, market readiness, and regulatory clearances.
