Vibrant IPO Landscape in FY26 with Rs 2 Lakh Crore Raised Despite Market Corrections
Synopsis
India's IPO market showcased impressive resilience in FY26, amassing over Rs 2 lakh crore through 153 IPOs, even as broader markets faced corrections. This report underscores the enduring investor confidence in India's economic prospects.
Key Takeaways
Strong IPO Activity: 153 IPOs raised Rs 2,01,442 crore in FY26.
GDP Growth Projection: Real GDP growth expected at 6.5% for FY26–FY27.
Government Spending: Capital expenditure to constitute one-third of FY27 spending.
Inflation Control: Projected inflation rate around 4.5%.
Retail Participation: Over 222 million demat accounts indicate strong retail involvement.
Mumbai, April 20 (NationPress) The primary market in India demonstrated remarkable strength in FY26, with a total of 153 IPOs generating a substantial Rs 2,01,442 crore, despite the broader equity markets facing a correction, according to a report released on Monday.
In its forecast for FY27, HDFC Securities emphasized that the vigorous IPO activity indicates a persistent investor enthusiasm and confidence in India's growth trajectory, even amid global uncertainties and market fluctuations.
The report highlighted that India's macroeconomic fundamentals are showing resilience, with real GDP growth anticipated at approximately 6.5 percent for FY26–FY27 and nominal GDP expected to grow by 10–11 percent.
Government-driven infrastructure investment continues to be pivotal, with capital expenditures predicted to comprise nearly one-third of total spending in FY27.
Inflation is projected to stay manageable at around 4.5 percent, alongside a targeted fiscal deficit of 4.3 percent, as indicated by the report.
However, external challenges persist. The Indian rupee faces pressure due to relatively low foreign direct investment inflows and ongoing foreign portfolio investor outflows, compounded by an expanding trade deficit.
These variables have led to a continuous depreciation trend that began in 2022.
On the corporate earnings front, the report anticipates an overall growth of about 10 percent, though performance is expected to differ across sectors.
Sectors such as banking, consumer discretionary, metals, and telecom are projected to see gradual improvements, while the energy sector may encounter some challenges.
Recent months have witnessed a correction in valuations, particularly within mid-cap and small-cap sectors, although they still exceed long-term averages.
Meanwhile, benchmark indices are nearing historically appealing levels, according to the report.
Retail involvement remains a crucial element of the market. The number of demat accounts has skyrocketed to over 222 million, and active equity traders reached 1.48 crore in February 2026.
Additionally, inflows from Systematic Investment Plans into mutual funds have remained robust, surpassing Rs 30,000 crore annually, as noted in the report.
Point of View
The robust IPO activity reflects an unwavering investor confidence in India's economic narrative. Despite external pressures, the resilience of the primary market signals a promising outlook for the future.
NationPress
7 Jul 2026
Frequently Asked Questions
How much did India raise through IPOs in FY26?
India raised a total of Rs 2,01,442 crore through 153 IPOs in FY26.
What is the projected GDP growth for FY26-FY27?
The real GDP growth for FY26-FY27 is projected to be around 6.5 percent.
How does government spending impact the economy?
Government-led infrastructure spending is anticipated to account for nearly one-third of total expenditure in FY27, which supports overall economic growth.
What are the key challenges facing the Indian rupee?
The Indian rupee is under strain due to weak foreign direct investment inflows, foreign portfolio investor outflows, and a widening trade deficit.
What sectors are expected to perform well in FY27?
Sectors such as banking, consumer discretionary, metals, and telecom are expected to see gradual improvements.
