IPOs in India hit record $12.5 billion in Jan-Sep: Report

Indian companies raised a record $12.5 billion through IPOs during January-September 2026, despite market volatility and foreign investor outflows. While average issue sizes increased, listing gains weakened and overall equity fundraising declined, testing the strength of domestic investor demand

New Delhi: Domestic firms have raised a record $12.5 billion through initial public offerings (IPOs) in the first nine months of 2026 even as equity markets witnessed selling pressure with Nifty declining about 14 per cent, according to a report.

As per analysis by LSEG, this fundraising is the highest January-September fundraising since records began in 1980. However, the number of IPOs declined 17.9 per cent year-on-year to 220 from 268 a year earlier, but proceeds rose 11.3 per cent, the data showed. The average issue size increased to about $57 million from $42 million.

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Several major offerings accounted for nearly 35 per cent of total IPO proceeds. In addition, September alone saw 34 mainboard IPOs raise Rs 39,380 crore, the highest monthly total of 2026, according to reports. However, offers for sale accounted for nearly three-fourths of proceeds, meaning most money went to existing shareholders rather than companies.

The IPO boom contrasted with slowdown in broader equity fundraising. Total equity capital market proceeds, including follow-on offerings and block sales fell 1.7 per cent year-on-year to a three-year low of $40.8 billion. Domestic liquidity helped support the IPO market despite foreign portfolio investors selling an estimated Rs 2.7 lakh crore to Rs 3 lakh crore worth of Indian equities during January-September.

However, listing gains showed signs of cooling. Average listing premium fell to 15.1 per cent in September from 24.4 per cent in August, while median declined to 5.9 per cent from 21.3 per cent.

Investment banks saw mixed results. Equity underwriting fees dropped 9 per cent to $415.6 million, even as overall investment banking fees rose 2 per cent to a record $1.1 billion, supported by stronger M&A advisory activity. Apart from that, more than 130 companies holding SEBI approval for IPOs, coming months will test whether domestic liquidity can continue supporting new listings amid weaker market returns.