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India's IPO Market Soars: $2.5 Billion Raised in Best Q1 Since 2018

India's primary market had its strongest first quarter since 2018, raising $2.5 billion through IPOs, a 7.8% year-on-year increase. Financial companies led the activity, contributing $1.2 billion, while the energy and power sector saw explosive 127% growth. In contrast, overall mergers and acquisitions activity in India fell sharply, with total deal value dropping 44.5% to $17.4 billion. The debt market also weakened, with bond issuances falling 39% to their lowest Q1 level in a decade.

Key Points: India IPO Market Hits $2.5B in Q1 2026, Strongest Since 2018

  • $2.5B raised in Q1 IPOs
  • Financial sector leads with $1.2B
  • Energy sector fundraising grows 127%
  • Overall M&A value drops 44.5%
2 min read

India IPO market hits highest Q1 since 2018, raises $2.5 billion

India's IPO market raises $2.5B in Q1 2026, a 7.8% YoY increase. Financial and energy sectors lead, while M&A activity declines sharply.

"Deal makers continue to prioritise scale, AI adoption, domestic consolidation, and portfolio divestitures - Elaine Tan, LSEG"

New Delhi, April 2

India's primary market has started 2026 on a strong note, with initial public offerings raising $2.5 billion in the first quarter, marking a 7.8 per cent increase year-on-year and the highest first-quarter performance since 2018, a new report said on Thursday.

India remained a key global IPO destination, accounting for around 8 per cent of worldwide proceeds during the quarter, according to a report by London Stock Exchange Group (LSEG).

The broader equity capital markets (ECM) showed resilience even as global uncertainties weighed on dealmaking sentiment.

Follow-on offerings contributed a major share, accounting for 58 per cent of total proceeds, the report stated.

Sector-wise, financial companies led the fundraising activity, contributing $1.2 billion and capturing over one-fifth of the market.

This was supported by large deals such as the IPO of Raajmarg Infra Investment Trust. Energy and power emerged as the second-largest sector, raising $1.0 billion with a sharp 127 per cent growth compared to last year.

Retail activity also surged, nearly tripling to $893.4 million and securing a 15.1 per cent share, the report stated.

However, overall dealmaking activity remained subdued. Mergers and acquisitions (M&A) involving India fell sharply, with total deal value dropping 44.5 per cent year-on-year to $17.4 billion.

In the debt market, bond issuances by Indian entities stood at $19.5 billion, down 39 per cent from a high base last year, making it the weakest first quarter in a decade.

Financial institutions continued to dominate bond fundraising, accounting for over 70 per cent of total issuance, the report stated.

Commenting on the trend, Elaine Tan, Senior Manager at LSEG Deals Intelligence, said dealmaking in India has begun the year cautiously, with a noticeable slowdown in both M&A volumes and large transactions.

"Deal makers continue to prioritise scale, AI adoption, domestic consolidation, and portfolio divestitures, amidst uncertainty and broader caution, resulting in more selective pockets of activity," Tan stated.

- IANS

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Reader Comments

P
Priya S
Great to see infrastructure and energy sectors leading the charge. We need more capital flowing into these core areas for long-term growth. However, the sharp drop in M&A is a bit worrying. Hope the momentum picks up in the coming quarters.
R
Rohit P
Retail activity nearly tripling! That's the real story here. More and more of us are moving from FDs to equities. Just hope the SEBI and companies ensure full transparency so small investors don't get burned.
S
Sarah B
Interesting data. The contrast is stark - strong IPO market but weak M&A and debt. It suggests companies are choosing to raise equity rather than take on debt or acquire others. A sign of caution, as the expert said.
V
Vikram M
While the headline number is good, we must look deeper. Financial institutions dominating both IPOs and bond markets? Feels a bit concentrated. Need more diversity - where are the tech and manufacturing IPOs?
K
Kavya N
As a small investor, I'm happy to see this growth. But please, companies, price your IPOs reasonably. Some recent listings left little on the table for retail. Let's build a sustainable market, not just a quick fundraising one.

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