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India's IPO Market Hits Record Rs 1.79 Lakh Cr in FY26 Despite Cooling Gains

India's primary market achieved a historic high with Rs 1.79 lakh crore raised through mainboard IPOs in FY 2025-26, marking a 10% increase over the previous year. However, investor enthusiasm moderated as average listing gains plummeted to 8% from 30%, and retail applications fell significantly. Mutual funds emerged as the largest anchor investors for the first time, overtaking foreign portfolio investors. Despite a strong pipeline of approved IPOs, issuers are cautious due to market volatility and weaker overall capital market conditions.

Key Points: India IPO Fundraising Hits Record High in FY26

  • Record Rs 1.79 lakh crore raised via 112 IPOs
  • Average listing gains fell sharply to 8%
  • Retail participation and oversubscription rates declined
  • Mutual funds surpassed FPIs as top anchor investors
2 min read

India IPOs hit record Rs 1.79 lakh crore in FY26, listing gains and participation slips: Primedatabase

India's mainboard IPOs raised a record Rs 1.79 lakh crore in FY26, though listing gains and retail participation declined significantly.

"IPO response was impacted by weaker listing performance. - Pranav Haldea"

New Delhi, April 1

India's primary market witnessed record-breaking activity in FY 2025-26, with IPO mobilisation touching an all-time high of Rs 1.79 lakh crore, according to data released by primedatabase.com.

A total of 112 companies raised Rs 1,78,963 crore through mainboard IPOs during the fiscal year, marking a 10 per cent increase over the previous year's Rs 1,62,387 crore raised via 78 IPOs.

Despite a subdued final quarter, where only Rs 18,772 crore was raised, this is the first time India has recorded two consecutive years of record IPO fundraising, said Pranav Haldea, Managing Director, PRIME Database Group.

However, overall public equity fundraising declined 18 per cent to Rs 3.05 lakh crore in FY26 from Rs 3.71 lakh crore in FY25, primarily due to lower mobilisation through FPOs and QIPs.

The largest IPO during the year was Tata Capital at Rs 15,512 crore, followed by HDB Financial Services (Rs 12,500 crore) and LG Electronics (Rs 11,605 crore). The average IPO size declined 23 per cent to Rs 1,598 crore.

Investor enthusiasm showed signs of moderation during the year. Only 56 per cent of IPOs received subscriptions above 10 times, compared to 72 per cent in the previous year. Retail participation also declined, with average applications falling to 12.87 lakh from 21.31 lakh in FY25.

Haldea noted, "IPO response was impacted by weaker listing performance. Average listing gain"

Listing performance weakened significantly, with average listing gains dropping to 8 per cent from 30 per cent last year. The average return of listed IPOs turned negative at -7 per cent amid broader market corrections.

Mutual funds emerged as the largest anchor investors for the first time, contributing 14.89 per cent of issue amounts, surpassing foreign portfolio investors (FPIs) at 13.38 per cent.

Looking ahead, the IPO pipeline remains strong, with 144 companies holding SEBI approval to raise around Rs 1.75 lakh crore, while another 63 companies await approval. However, issuers remain cautious amid market volatility.

Meanwhile, SME IPO activity also rose, with 254 issues raising Rs 10,944 crore, though investor response and listing gains weakened in this segment as well.

Overall, total fund mobilisation by Indian corporates across equity and debt instruments declined 12 per cent to Rs 19.33 lakh crore in FY26, reflecting softer capital market conditions.

- ANI

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Reader Comments

R
Rohit P
Wow, Rs 1.79 lakh crore! This shows tremendous confidence in India's growth story. Even if listing gains are down, the sheer volume of companies coming to market means more options for long-term investors. The strong pipeline for next year is very promising.
A
Aman W
The fact that mutual funds are now the biggest anchor investors is a huge shift. It shows domestic institutions are leading the charge, which is healthier than relying on FPIs who can be flighty. This is a positive for market stability.
S
Sarah B
I appreciate the detailed data. The decline in average applications from 21 lakh to 13 lakh is stark. It suggests the retail frenzy has cooled, which is probably a good thing. Investing should be about fundamentals, not FOMO.
V
Vikram M
The headline number is impressive, but the details tell a different story. Weaker listing gains, negative returns after listing, and lower subscriptions... this looks like a market top. Companies are cashing in while they can. Investors should be cautious.
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Kavya N
Good to see big names like Tata Capital leading the pack. It brings credibility. But the SME segment activity rising to 254 issues is the real story! That's where the future unicorns are. Hope the weaker listing gains there don't dampen the entrepreneurial spirit.

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