India’s IPO Market Loses Steam as Companies Scale Back Fundraising Plans

India’s primary market has lost momentum in 2026, with companies raising less capital through initial public offerings (IPOs) as weaker market conditions prompt issuers to reduce issue sizes, delay listings and accept lower valuations.

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Public issues have mobilised about $5.78 billion so far this year, compared with $7.32 billion during the corresponding period of 2025, according to data compiled by Bloomberg. The slowdown comes after India recorded back-to-back record years for IPO fundraising, with companies raising $22.36 billion in 2025 and $20.65 billion in 2024.

Companies Opt for Smaller IPOs

Several companies that were expected to launch large offerings have revised their fundraising plans in recent months. Temasek-backed Manipal Health Enterprises, Indo-MIM, and Juniper Green Energy have all reduced the size of their public issues before launch.

Manipal Health, which had initially planned an offering of more than $1 billion, reduced its IPO size to $960 million. Indo-MIM, which had earlier targeted up to $700 million, eventually raised around $396 million. Juniper Green Energy also lowered its planned issue size from $314 million to $188 million.

The softer primary market has also influenced companies yet to enter the market. Quick commerce platform Zepto chose to raise funds through a pre-IPO private placement instead of proceeding immediately with a public issue. At the same time, Sify Infinit Spaces has held back from its planned IPO while PhonePe has delayed its IPO plans.

Market Conditions Impact Funding

The lower level of IPO activities is indicative of the general cooling trend in India's domestic equity market where firms are scaling down expectations for higher valuations.

Even the performance of shares from newly-listed companies has been lackluster, further discouraging investors from investing in IPOs. Investment bankers have indicated that domestic institutional investors, who have taken a larger role in recent IPOs amid lower foreign participation, are negotiating harder on pricing and valuations.

According to Bloomberg, Dharmesh Mehta, Managing Director and Chief Executive Officer of DAM Capital Advisors, said many companies are choosing to reduce fundraising instead of accepting greater equity dilution at lower valuations.

Large Listings Still Expected

Despite the moderation, some high-profile offerings remain on track. Jio Platforms Ltd. and the National Stock Exchange of India Ltd. (NSE) are expected to be the only Indian IPOs exceeding $1 billion this year.

Both companies filed their draft offer documents with the Securities and Exchange Board of India (SEBI) in July and are expected to launch their public issues around September or October, subject to market conditions.

Bloomberg also quoted Pratik Loonker, Managing Director and Head of Equity Capital Markets at Axis Capital, as saying that issuers are increasingly prioritising successful execution of deals over maximising fundraising or seeking aggressive valuations as volatility and selective investor participation continue to shape India’s IPO market.