India’s IPO Fundraising Surges to a Record $12.5 Billion in Tough Market Conditions

Although the stock market in India had struggled, firms that were making their market debut found many willing buyers.

Firms based in India managed to raise a record $12.5 billion through their IPOs over the first nine months of 2026, according to LSEG. This came as the Nifty 50 lost almost 14% during the period.

It marked the largest amount raised through IPOs during January to September since the data collection started in 1980.

The figures indicate an exceptional year for the market in which share prices were declining and foreign investment falling while companies continued raising substantial amounts from investors through IPOs.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Fewer IPOs, But Companies Raised More Money

The record fundraising was not because of more companies issuing their shares in the market.

India had 220 IPOs between January and September 2026, which is 17.9% less than 268 IPOs made between January and September 2025.

However, despite the reduction in the number of IPOs issued, the money raised increased by 11.3%.

This was due to the fact that the size of the offering increased.

The average size of an IPO increased to $57 million from $42 million one year ago.

Three Large IPOs Represented Over 35% of the Capital Raising Total

A few large IPOs made up a huge chunk of the record capital raised.

The National Stock Exchange of India raised $2.36 billion through its IPO, which makes it the largest among the largest offerings in the current period.

SBI Funds Management raised another IPO of $1.02 billion, while Manipal Health Enterprises raised $970 million.

Thus, three largest IPOs made up over 35% of the $12.5 billion raised during the first nine months of the year.

September proved to be a very active month. During September, 34 IPOs were listed on the main board and raised ₹39,380 crore, which is the highest monthly capital raising figure in 2026.

However, there is one significant point related to that figure. Almost 75% of the funds raised during September were raised via offers for sale.

In this case, the money is received by the selling shareholders and not the company issuing shares.

Domestic Money Helps Keep IPO Market Active

The strength of the IPO market has come against a difficult backdrop for Indian equities.

Foreign portfolio investors sold an estimated ₹2.7 lakh crore to ₹3 lakh crore of Indian equities between January and September, according to the report.

Domestic investors, however, continued putting money into the market.

That pool of local money helped keep demand for new issues alive even as overseas investors reduced their exposure to Indian equities.

The contrast has become increasingly visible during 2026. The secondary market has faced persistent pressure, while the primary market has continued to attract companies and investors.

Listing-Day Gains Are Cooling

Strong fundraising does not mean every IPO is receiving the same enthusiasm once trading begins.

Average listing gains dropped to 15.1% in September from 24.4% in August.

The median listing gain saw an even sharper decline, falling to 5.9% from 21.3% during the same period.

The numbers suggest investors continued to participate in new offerings but became more measured about the prices they were willing to pay.

Overall Equity Fundraising Tells a Different Story

The record IPO numbers also stand out because the broader fundraising market has not been equally strong.

Total equity capital market proceeds which include IPOs as well as follow-on offerings and block sales stood at $40.8 billion during the first nine months.

That was 1.7% lower than a year earlier and represented a three-year low.

Investment banks also saw equity underwriting fees fall 9% to $415.6 million.

Overall investment banking fees, however, increased 2% to a record $1.1 billion, helped by stronger merger and acquisition advisory activity.

More Than 130 Companies Have IPO Approval

The pipeline remains crowded.

More than 130 companies have already received approval from the Securities and Exchange Board of India to launch IPOs, according to the report.

Whether all those companies eventually enter the market will depend on the conditions they face when they are ready to launch.

That makes the final months of 2026 particularly important for India’s IPO market.

The first nine months have already delivered a fundraising record despite a sharp decline in the benchmark market and sustained foreign selling. The next test will be whether investors remain willing to back new listings if pressure on the broader stock market continues.

For now, the numbers tell a striking story: India has had fewer IPOs in 2026, but bigger deals have pushed the amount raised to a record $12.5 billion.