Indian companies have raised a record $12.5 billion through initial public offerings in the first nine months of 2026, even as the Nifty slid about 14 per cent, according to a report based on LSEG data published on October 9 — the highest January-September fundraising since records began in 1980.
Fewer IPOs, but bigger ones
The number of IPOs actually fell 17.9 per cent year-on-year to 220 from 268, but proceeds rose 11.3 per cent as the average issue size climbed to about $57 million from $42 million. A handful of large offerings accounted for nearly 35 per cent of total proceeds.
September alone saw 34 mainboard IPOs raise Rs 39,380 crore — the highest monthly total of 2026. However, offers for sale made up nearly three-fourths of proceeds, meaning most of the money went to existing shareholders rather than into the companies themselves.
Domestic money fills the FPI gap
The IPO boom stood in sharp contrast to the broader equity 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.
Foreign portfolio investors sold an estimated Rs 2.7 lakh crore to Rs 3 lakh crore of Indian equities in the first nine months, but strong domestic liquidity kept the primary market running.
Signs of cooling are emerging: the average listing premium fell to 15.1 per cent in September from 24.4 per cent in August, while the median dropped to 5.9 per cent from 21.3 per cent.
Equity underwriting fees slipped 9 per cent to $415.6 million, though overall investment banking fees still rose 2 per cent to a record $1.1 billion, supported by stronger merger-and-acquisition advisory work. More than 130 companies now hold SEBI approval for IPOs, which will test whether domestic demand can sustain the pipeline as listing gains soften.
Sources: ABP Live: IPO fundraising hits record $12.5 billion in 2026 despite 14% Nifty decline | Free Press Journal: India's IPO boom hits record $12.5 billion
Fewer IPOs, but bigger ones
The number of IPOs actually fell 17.9 per cent year-on-year to 220 from 268, but proceeds rose 11.3 per cent as the average issue size climbed to about $57 million from $42 million. A handful of large offerings accounted for nearly 35 per cent of total proceeds.
September alone saw 34 mainboard IPOs raise Rs 39,380 crore — the highest monthly total of 2026. However, offers for sale made up nearly three-fourths of proceeds, meaning most of the money went to existing shareholders rather than into the companies themselves.
Domestic money fills the FPI gap
The IPO boom stood in sharp contrast to the broader equity 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.
Foreign portfolio investors sold an estimated Rs 2.7 lakh crore to Rs 3 lakh crore of Indian equities in the first nine months, but strong domestic liquidity kept the primary market running.
Signs of cooling are emerging: the average listing premium fell to 15.1 per cent in September from 24.4 per cent in August, while the median dropped to 5.9 per cent from 21.3 per cent.
Equity underwriting fees slipped 9 per cent to $415.6 million, though overall investment banking fees still rose 2 per cent to a record $1.1 billion, supported by stronger merger-and-acquisition advisory work. More than 130 companies now hold SEBI approval for IPOs, which will test whether domestic demand can sustain the pipeline as listing gains soften.
Sources: ABP Live: IPO fundraising hits record $12.5 billion in 2026 despite 14% Nifty decline | Free Press Journal: India's IPO boom hits record $12.5 billion
