India’s mainboard IPO fundraising hits record Rs 84,400 cr in H1 FY27, rises 30 pc: Report

India’s mainboard initial public offering (IPO) market raised a record Rs 84,400 crore in the first half of FY27, marking a 30 per cent increase from Rs 64,900 crore in the corresponding period last year, as a sharp revival in primary market activity during the September quarter offset a subdued start to the financial year, according to a report by Grant Thornton Bharat.

A total of 71 companies listed on the mainboard between April and September 2026, compared with 55 in the year-ago period. However, the bulk of the fundraising activity was concentrated in the second quarter, with July-September accounting for 94 per cent of the total capital mobilised during the first half.

September emerged as the strongest month, with 32 IPOs collectively raising Rs 40,400 crore. The fundraising was the highest recorded in a single month and accounted for more than half of the capital mobilised during the second quarter, highlighting the rapid reopening of the primary market issuance window.

Improvement in listing returns, investor participation

The strong fundraising performance also coincided with an improvement in listing returns and investor participation. Average listing-day gains increased to 18 per cent in H1 FY27 from 10 per cent in the corresponding period last year, while average retail investor oversubscription rose to 28 times from 25 times.

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The sectoral distribution of IPO activity reflected the continued prominence of financial services and industrial businesses. Financial services companies accounted for 43 per cent of the total capital raised during the first half, while capital goods companies led issuance volumes, with 15 IPOs.

Strong inflows from DIIs

Institutional investor flows played an important role in supporting the primary market amid volatility in the secondary market. Domestic institutional investors (DIIs) recorded net equity inflows of Rs 1.69 trillion during Q2 FY27, significantly higher than the Rs 13,900 crore invested by foreign portfolio investors (FPIs) during the quarter.

The strong domestic institutional participation helped absorb the increased supply of new equity even as benchmark indices came under pressure.

Investor demand ‘increasingly selective’

The Nifty 50 declined 5.7 per cent in September, underlining the divergence between activity in the primary and secondary markets.

“The IPO market moved from caution to acceleration in Q2 FY27, helping deliver a record first half,” said Karan Marwah, partner and capital markets advisory leader at Grant Thornton Bharat.

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He added that investor demand was becoming increasingly selective, with greater emphasis on fundamentals, valuation, corporate governance, and the intended use of IPO proceeds.

Pipeline of prospective listings

The pipeline of prospective listings also remains sizeable. As many as 100 mainboard companies and 159 small and medium enterprise (SME) companies filed draft offer documents during H1 FY27, indicating continued interest among businesses in tapping the capital markets.

However, a large pipeline does not necessarily translate into completed listings. Grant Thornton Bharat cautioned that regulatory approval timelines, market conditions, and companies' preparedness could influence the conversion of these filings into actual IPOs.

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The record first-half fundraising signals the growing depth of India's equity capital markets and the ability of domestic institutional capital to support large issuances. However, sustaining the momentum will depend on issuers maintaining realistic valuations and demonstrating strong business fundamentals as investors become more discerning about new listings.