India mainboard IPO fundraising hits record ₹84,400 crore in H1 FY27, up 30%
Synopsis
Key Takeaways
India's mainboard IPO market raised a record ₹84,400 crore (Rs 844 billion) in the first half of financial year 2026-27 (April–September 2026), a 30 per cent jump from Rs 649 billion in the same period last year, according to a report released on Monday, 2 November 2026 by Grant Thornton Bharat. A striking 94 per cent of that capital was mobilised between July and September, underscoring how swiftly the issuance window reopened after a subdued first quarter.
Scale of Activity
A total of 71 mainboard companies entered the public markets during April–September 2026, up from 55 in the corresponding period of the previous year. Average listing-day gains improved to 18 per cent from 10 per cent, while average retail oversubscription climbed to 28 times from 25 times, signalling robust demand from individual investors.
September's Record-Breaking Month
The acceleration was concentrated in September 2026, when 32 IPOs collectively raised Rs 404 billion — more than half of all Q2 FY27 fundraising and the highest single-month total on record. Financial services dominated by value, accounting for 43 per cent of total capital raised, while capital goods led by volume with 15 IPOs. Notably, this surge occurred despite a 5.7 per cent decline in the Nifty 50 during September — a sign that IPO-specific demand held firm even as secondary markets weakened.
Domestic Investors Drive Absorption
Domestic institutional investors (DIIs) emerged as a critical stabilising force, recording net equity inflows of Rs 1,694 billion during Q2 FY27, compared with just Rs 139 billion from foreign portfolio investors (FPIs). This domestic depth allowed the market to absorb a sharp uptick in issuance even as global risk appetite remained uneven. The divergence between DII and FPI flows is the widest seen in recent quarterly data, pointing to a structural shift in who is anchoring Indian equities.
What Experts Said
Karan Marwah, Partner and Capital Markets Advisory Leader at Grant Thornton Bharat, noted: 'India's IPO market moved from caution to acceleration in Q2 FY27, helping deliver a record first half. 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.' Marwah added that 'successful IPO execution is not only about choosing the right window, but about being fully prepared when it opens.'
Pipeline and Cautions Ahead
The forward pipeline remains substantial: 100 mainboard companies and 159 SME companies filed draft offer documents during H1 FY27. However, the report cautioned that a large pipeline does not automatically translate into completed listings, particularly where regulatory approvals lapse or market readiness remains incomplete. With valuations under closer scrutiny and investor selection increasingly fundamentals-driven, the quality of upcoming issuances will be as closely watched as their quantity.