India's IPO market hits record high of Rs 1.79 lakh crore in FY26

India's primary market saw record IPO fundraising of Rs 1.79 lakh crore in FY26, a 10% rise from FY25. Despite the record, investor sentiment cooled with lower listing gains, reduced retail participation, and a decline in overall fundraising.

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.

Overall Public Equity Fundraising Declines

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.

Analysis of Mainboard IPOs

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.

Shift in Anchor Investor Dominance

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.

Future IPO Pipeline

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.

SME IPO Activity

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.

Broader Capital Market Conditions

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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