Indian IPO Market Sees Record Growth Amidst Stock Market Weakness

New Delhi, October 9 (Daily Kiran) : Indian companies have achieved a remarkable milestone in the first nine months of 2026, raising $12.5 billion through initial public offerings (IPOs). This figure marks the highest fundraising for the January-September period since records began in 1980. According to an analysis by LSEG, this achievement comes at a time when the broader stock market has faced pressures, with the Nifty index experiencing a decline of nearly 14 percent.Despite a decrease in the number of IPOs, the total amount raised has increased by 11.3 percent. During this period, 220 IPOs were launched, down approximately 17.9 percent from the 268 IPOs recorded in the same timeframe last year. The average size of these IPOs has risen to about $5.7 million, compared to around $4.2 million the previous year. The report highlights that several large IPOs significantly contributed to the total fundraising. Notably, around 35 percent of the total funds raised came from a few major issues.September 2026 proved to be a particularly strong month for the IPO market, with 34 mainboard IPOs raising approximately ₹39,380 crore, the highest monthly figure for the year. However, it's important to note that nearly three-quarters of the raised amount came from offers for sale (OFS), indicating that much of the capital went to existing shareholders rather than directly into the companies' balance sheets. This strength in the IPO market contrasts sharply with the overall equity fundraising, which saw a 1.7 percent decline, dropping to $40.8 billion—the lowest level in three years.The report attributes this IPO market resilience to strong domestic liquidity, occurring even as foreign portfolio investors withdrew an estimated ₹2.7 to ₹3 lakh crore from the Indian stock market between January and September. Signs of a slowdown in post-listing profits have also emerged. In September, the average listing premium was 15.1 percent, down from 24.4 percent in August. Meanwhile, the median listing gain fell from 21.3 percent to 5.9 percent. The investment banking industry has faced mixed results.Equity underwriting fees dropped by 9 percent to $415.6 million, but total investment banking fees rose by 2 percent to a record $1.1 billion, thanks to robust mergers and acquisitions activity. Currently, more than 130 companies hold IPO approvals from SEBI. It will be crucial to observe how domestic investors' strong participation supports new listings in the coming months, despite the relatively weak returns in the market.