India Raises ₹84,400 Crore Through IPOs in H1 FY27, Fundraising Jumps 30%

India’s mainboard initial public offering (IPO) market raised a record ₹84,400 crore during the first half of FY2026-27, registering a 30% increase compared with the same period last year. The fundraising surge was driven largely by a sharp increase in public issues during the July-September quarter, when companies capitalised on improving investor participation and stronger demand for new listings.

According to Grant Thornton Bharat’s India IPO Market: H1 FY27 and Q2 FY27 Review, 71 companies listed on the mainboard between April and September 2026, compared with 55 in the corresponding period last year. Average listing-day gains improved to 18% from 10%, while September emerged as the busiest month, with 32 IPOs raising ₹40,400 crore. The figures indicate a strong recovery in India’s primary market after a relatively subdued start to the financial year.

IPO Fundraising Increases 30% in First Half

The ₹84,400 crore raised in H1 FY27 represents a substantial increase from the ₹64,900 crore mobilised through mainboard IPOs during H1 FY26.

However, the fundraising was heavily concentrated in the second quarter. Grant Thornton Bharat reported that approximately 94% of the first-half total was raised between July and September.

This means companies raised approximately ₹79,700 crore during Q2 FY27, compared with a relatively quiet first quarter.

September was particularly active. A total of 32 companies raised ₹40,400 crore through mainboard IPOs during the month, making it the strongest month for IPO fundraising in the period.

IPO market indicator	H1 FY26	H1 FY27
Mainboard IPO fundraising	₹64,900 crore	₹84,400 crore
Number of mainboard listings	55	71
Average listing-day gains	10%	18%
Average retail oversubscription	25 times	28 times

The figures show that both the number of companies entering the market and the amount of capital raised increased during the latest six-month period.

September Becomes the Biggest Month for IPOs

The July-September quarter played a decisive role in the recovery of India’s IPO market.

After a relatively slow opening to FY27, companies accelerated their fundraising plans as market conditions improved and investor demand strengthened.

September alone accounted for ₹40,400 crore of IPO fundraising, with 32 companies completing their mainboard listings.

The concentration of fundraising in the final part of the half-year also demonstrates how sensitive IPO activity can be to market conditions. Companies often prefer to launch public offerings when investor appetite, valuations and broader equity-market sentiment are supportive.

A strong issuance window can allow several companies to complete their fundraising plans within a short period. However, it also means that activity can slow quickly if market volatility increases or investors become more selective.

Financial Services Lead Fundraising

Financial services companies accounted for approximately 43% of the total capital raised through mainboard IPOs during H1 FY27, making the sector the largest contributor by fundraising value.

The strong contribution reflects the capital requirements and public-market participation of businesses operating across financial services.

Capital goods companies, meanwhile, led in terms of the number of IPOs, with 15 issues during the first half.

This indicates that India’s IPO market was not driven exclusively by financial companies. Industrial and manufacturing-linked businesses also used the equity market to raise capital.

The sectoral distribution is important because IPO fundraising can reflect different corporate objectives. Financial companies may seek capital to support lending, expansion or balance-sheet requirements, while industrial businesses may use public offerings to finance capacity expansion and other investments.

Domestic Institutional Investors Support the Market

Domestic institutional investors (DIIs) played an important role in supporting Indian equities during Q2 FY27.

Grant Thornton Bharat reported that DIIs recorded net equity inflows of ₹1.69 lakh crore during the quarter, compared with net inflows of ₹13,900 crore from foreign portfolio investors (FPIs).

This domestic investment support helped the market absorb a substantial increase in new share offerings, even as the Nifty 50 declined 5.7% during September.

The difference between domestic and foreign investor flows highlights the growing importance of local institutional capital in India’s equity market.

Domestic mutual funds, insurance companies and other institutional investors can provide a source of demand when international investors reduce their exposure to Indian equities.

However, strong institutional inflows do not guarantee that every IPO will perform well. Investors still need to assess individual companies, their valuations, financial performance and proposed use of funds.

Listing Gains and Retail Investor Participation Improve

The average listing-day gain for mainboard IPOs increased to 18% in H1 FY27, compared with 10% in the same period last year.

Average retail oversubscription also improved from 25 times to 28 times.

These indicators suggest stronger participation in the primary market and improved performance on listing day.

However, average listing gains should not be interpreted as a guarantee of returns for investors. Individual IPO performance can vary considerably depending on pricing, company fundamentals, market conditions and investor expectations.

Grant Thornton Bharat’s report also highlighted that investor demand was becoming more selective, with greater attention to valuations, corporate governance, business fundamentals and the planned use of IPO proceeds.

This is important because a heavily subscribed IPO does not necessarily indicate that the company is attractively valued over the long term.

Fresh Issues Account for a Larger Share of IPO Proceeds

Another important development was the increasing contribution of fresh share issues to total IPO fundraising.

According to Grant Thornton Bharat, fresh issues accounted for approximately 67% of total IPO proceeds in H1 FY27, compared with 51% in H1 FY26.

A fresh issue involves a company issuing new shares to raise money. The proceeds generally go to the company and can be used for purposes such as debt repayment, capital expenditure, acquisitions and working capital.

An offer for sale (OFS), by contrast, involves existing shareholders selling their shares. The money from an OFS generally goes to the selling shareholders rather than the company.

The report said fresh issue proceeds were allocated across several purposes:

Use of fresh issue proceeds	Share
Debt repayment	44%
Capital expenditure, expansion and acquisitions	18.5%
General corporate purposes	16.1%
Other purposes	Remaining share

The larger share of fresh issues indicates that more IPO capital was directed towards companies rather than exclusively providing an exit opportunity for existing investors.

IPO Pipeline Remains Strong

The pipeline of companies preparing to enter India’s public markets also remained substantial.

During H1 FY27, 259 companies filed draft offer documents with the Securities and Exchange Board of India (SEBI).

Of these, 100 were mainboard companies and 159 belonged to the small and medium enterprise (SME) segment.

The report also highlighted increasing use of SEBI’s confidential pre-filing mechanism. This route allows companies to submit draft IPO documents privately before making their plans public.

Since the mechanism was introduced in 2022, 48 companies have used it, including 24 during the first five months of 2026.

The confidential filing process gives companies more flexibility to undergo regulatory scrutiny before publicly announcing their proposed offerings. It also means that the publicly visible IPO pipeline may not represent the entire volume of companies preparing to list.

However, a large pipeline does not automatically translate into completed IPOs. Companies still need regulatory observations, suitable market conditions and sufficient investor demand before proceeding with their offerings.

Regulatory Changes Affect IPO Plans

The second quarter also brought regulatory developments that affected companies preparing to list.

SEBI’s one-time extension of certain IPO approvals ended on September 30, 2026. Companies whose approvals had expired were required to submit fresh filings before proceeding.

The regulator also approved changes to the permissible increase or decrease in issue size without requiring companies to file fresh draft offer documents, subject to the applicable conditions.

For SME issuers, the expiry of the one-time extension of exchange approvals also meant that companies needed to meet the relevant requirements to proceed with their listings.

These changes are significant because regulatory readiness is an important part of IPO planning. Companies must ensure that their financial disclosures, governance arrangements and offer documents meet the requirements before launching a public issue.

The Bigger Picture

The ₹84,400-crore fundraising figure highlights the growing depth of India’s primary equity market. More companies are using public listings to raise capital, while domestic institutional investors are providing substantial support to the broader equity market.

The increase in fresh issue proceeds is another important development because it indicates that a larger share of IPO fundraising is going towards corporate financing needs such as debt repayment and expansion.

However, record fundraising does not mean that every IPO represents a strong investment opportunity. The quality of issuers, pricing discipline, governance standards and the productive use of capital will determine whether the current momentum translates into sustainable value for companies and shareholders.

Looking Ahead

India’s IPO pipeline suggests that public-market fundraising could remain active, with hundreds of companies having filed or prepared draft offer documents. The actual number of listings will depend on regulatory approvals, market conditions and the ability of companies to attract investors at acceptable valuations.

For investors, the next phase will require greater attention to company fundamentals rather than simply the number of IPOs entering the market. The first-half performance demonstrates that India’s primary market can absorb substantial issuance, but maintaining investor confidence will depend on the quality and long-term performance of newly listed businesses.