NEW DELHI–India’s initial public offering market raised a record Rs 844 billion during the first half of fiscal 2027, marking a 30% increase from the previous year as a surge in new listings during the July-September quarter drove fundraising activity, according to a report released Monday by Grant Thornton Bharat.
The report found that 94% of the capital raised through mainboard IPOs during the April-September period came in the second quarter, reflecting a sharp rebound in market activity following a relatively subdued first quarter.
A total of 71 companies launched mainboard IPOs during the six-month period, compared with 55 in the corresponding period of fiscal 2026.
Total fundraising climbed from Rs 649 billion a year earlier to Rs 844 billion, while investor returns on newly listed stocks also improved.
Average listing-day gains increased to 18%, compared with 10% in the previous year. Retail investor demand strengthened, with average oversubscription rising to 28 times the shares available from 25 times a year earlier.
September emerged as the strongest month for IPO activity, with 32 companies raising Rs 404 billion. The amount represented more than half of the capital mobilized during the second quarter and marked the highest monthly fundraising total recorded during the period.
Financial services companies dominated fundraising, accounting for 43% of the total capital raised. Meanwhile, the capital goods sector led in the number of public offerings, with 15 IPOs.
Domestic institutional investors played a significant role in supporting the surge in new listings.
According to the report, domestic institutions recorded net equity inflows of Rs 1,694 billion during the second quarter of fiscal 2027, substantially exceeding the Rs 139 billion invested by foreign portfolio investors.
The strong participation of domestic investors helped Indian capital markets accommodate a sharp increase in new share offerings even as broader stock market conditions weakened.
The benchmark Nifty 50 index declined 5.7% during September, but the market continued to attract significant demand for new public offerings.
“India’s IPO market moved from caution to acceleration in Q2 FY27, helping deliver a record first half. While the scale of fundraising shows the market can absorb new issuance, investor demand stayed selective and increasingly focused on fundamentals, pricing, governance and the use of proceeds,” said Karan Marwah, Partner & Capital Markets Advisory Leader, Grant Thornton Bharat.
Marwah said the strong second-quarter performance demonstrated the importance of companies being prepared to enter public markets when favorable fundraising conditions emerge.
The report also pointed to a substantial pipeline of companies seeking to go public in the coming months.
During the first half of fiscal 2027, 100 mainboard companies and 159 small and medium enterprise (SME) companies submitted draft offer documents, indicating continued interest in accessing public equity markets.
However, Grant Thornton Bharat cautioned that the large number of prospective offerings does not necessarily guarantee a corresponding increase in completed listings.
Companies could face delays or setbacks if regulatory approvals expire or if they are not adequately prepared to proceed with their offerings.
The findings suggest that India’s IPO market continues to benefit from strong domestic institutional participation and investor interest, although market conditions, company valuations and regulatory readiness will remain important factors in determining whether the current fundraising momentum can continue. (Source: IANS)
