India IPOs raise record $12.5 billion in Jan-Sep 2026 despite Nifty slide
Synopsis
Indian IPOs just logged their best January-September haul since records began in 1980 — $12.5 billion raised despite a 14% Nifty slide and heavy FPI selling. The twist: fewer companies listed, average deal sizes jumped, and three-fourths of proceeds went to existing shareholders, not the companies themselves. With 130-plus SEBI-approved IPOs in the queue and listing premiums cooling fast, the real test begins now.
Key Takeaways
Indian companies raised a record $12.5 billion via IPOs in January-September 2026 , the highest Jan-Sep total since 1980 , per LSEG data.
IPO count fell 17.9 per cent to 220 , but proceeds rose 11.3 per cent year-on-year; average issue size climbed to $57 million from $42 million .
September 2026 was the strongest month, with 34 mainboard IPOs raising ₹39,380 crore .
Nearly three-fourths of proceeds came from offers for sale, meaning most capital went to existing shareholders, not companies.
Foreign portfolio investors sold an estimated ₹2.7–3 lakh crore of Indian equities in the period; domestic liquidity absorbed the pressure.
Average listing premium fell to 15.1 per cent in September from 24.4 per cent in August, signalling cooling post-listing returns.
Indian companies raised a record $12.5 billion through initial public offerings (IPOs) in the first nine months of 2026, even as broader equity markets remained under pressure with the Nifty declining roughly 14 per cent over the same period, according to data from LSEG. The figure marks the highest January-September IPO fundraising since records began in 1980.
Key Numbers Behind the Record
While the total amount raised climbed 11.3 per cent year-on-year, the number of IPOs actually fell 17.9 per cent to 220 from 268 in the same period a year earlier, according to LSEG analysis. This divergence points to a market dominated by larger, higher-quality issuances rather than a broad-based listing frenzy.
The average issue size rose sharply to approximately $57 million from $42 million the previous year, and several major offerings collectively accounted for nearly 35 per cent of total IPO proceeds, signalling concentration at the top end.
September Stands Out
September 2026 alone saw 34 mainboard IPOs raise ₹39,380 crore, the highest monthly tally of the year, according to reports. However, a structural caveat tempers the headline: offers for sale (OFS) accounted for nearly three-fourths of all proceeds, meaning the bulk of capital flowed to existing shareholders rather than into company coffers for fresh investment or expansion.
Broader Equity Markets Tell a Different Story
The IPO surge sat against a backdrop of weakness in the wider equity capital market. Total equity capital market proceeds — including follow-on offerings and block sales — fell 1.7 per cent year-on-year to a three-year low of $40.8 billion, underscoring that IPO momentum was not reflective of a broader fundraising upswing.
Foreign portfolio investors (FPIs) were net sellers, offloading an estimated ₹2.7 lakh crore to ₹3 lakh crore worth of Indian equities between January and September. Domestic liquidity — driven by retail and institutional flows — is credited with cushioning the IPO market against this FPI exit pressure. This is increasingly being cited as evidence of India's growing domestic investor base acting as a market stabiliser.
Listing Gains Cooling, Fees Mixed
Signs of a tempering appetite are visible in post-listing performance. The average listing premium dropped to 15.1 per cent in September from 24.4 per cent in August, while the median premium fell sharply to 5.9 per cent from 21.3 per cent — a notable compression that could influence retail investor sentiment in the months ahead.
On the investment banking side, equity underwriting fees dipped 9 per cent to $415.6 million, even as overall investment banking fees rose 2 per cent to a record $1.1 billion, buoyed by stronger mergers and acquisitions advisory activity. With more than 130 companies holding SEBI approval for pending IPOs, the coming months will test whether domestic liquidity can sustain the listing pipeline amid weaker market returns and a cooling secondary market.
Point of View
Not broadening — fewer IPOs, bigger cheques, and three-quarters of proceeds recycled to existing shareholders through OFS rather than deployed for growth. That is a liquidity event, not a capital formation story. More telling is the divergence between IPO buoyancy and the three-year low in total equity capital market proceeds: domestic retail flows are propping up listings even as FPIs exit and broader fundraising contracts. With listing premiums compressing sharply in September and 130-plus SEBI-approved issuances in the queue, the pipeline risk is real. If domestic flows soften — whether from weaker returns or rate-cycle shifts — the IPO market's structural support disappears quickly.
NationPress
9 Oct 2026
Frequently Asked Questions
How much did Indian companies raise through IPOs in 2026 so far?
Indian companies raised a record $12.5 billion through IPOs in the first nine months of 2026, the highest January-September total since records began in 1980, according to LSEG data. Proceeds rose 11.3 per cent year-on-year even though the number of IPOs fell.
Why did IPO proceeds rise even though fewer companies listed?
The average issue size grew to approximately $57 million from $42 million a year earlier, and several large offerings accounted for nearly 35 per cent of total proceeds, driving up the aggregate even as the count of IPOs declined 17.9 per cent to 220.
What is an offer for sale and why does it matter here?
An offer for sale (OFS) is when existing shareholders — promoters or early investors — sell their stakes in a public offering rather than the company issuing fresh shares. In Jan-Sep 2026, OFS accounted for nearly three-fourths of IPO proceeds, meaning most of the money raised did not go into company expansion or operations.
How did the Nifty decline affect the IPO market?
Despite the Nifty falling roughly 14 per cent and foreign portfolio investors selling an estimated ₹2.7–3 lakh crore of Indian equities, the IPO market held up due to robust domestic liquidity. However, listing premiums cooled significantly, with average premiums dropping to 15.1 per cent in September from 24.4 per cent in August.
What happens next for India's IPO pipeline?
More than 130 companies currently hold SEBI approval for IPOs, making the coming months a critical stress test for domestic liquidity. Investment banking fees from equity underwriting already fell 9 per cent, and if listing gains continue to compress, retail appetite for new issues could weaken further.
