India's initial public offering boom is fading significantly, with companies raising $5.78 billion through IPOs so far in 2026, representing a 20% decline from the $7.32 billion raised in the year-earlier period. According to Bloomberg data, this follows record fundraising of $22.36 billion in 2025 and $20.65 billion in 2024. The deterioration reflects a broad weakening in India's capital markets, with companies cutting deal sizes, accepting lower valuations, and delaying listings amid subdued market conditions. As The Economic Times reports, the proceeds are down by a fifth from a year earlier as companies dial back their ambitions after two record years, with companies that only months ago were pursuing lofty valuations now dialing back their ambitions.
Several closely watched IPO candidates have significantly reduced their offerings to complete deals. Manipal Health Enterprises, which had initially planned to raise more than $1 billion, cut the size to $960 million. Indo-MIM, which had targeted as much as $700 million earlier this year, ultimately raised about $396 million last week, though the issue was subscribed more than 72 times. Juniper Green Energy cut its planned IPO size from $314 million to $188 million. Zepto Ltd. has opted for a pre-IPO placement, with the company agreeing on a private share sale to major investors on Saturday, following investors assigning the company a valuation that was sharply lower than its peak of $7 billion. Sify Infinit Spaces has put its offering on hold and Walmart Inc.-backed PhonePe has deferred its listing plans. The reductions in deal sizes have been significant, with local institutions driving tougher negotiations on pricing amid subdued foreign participation.
Despite the overall decline in fundraising, the initial public offering market has demonstrated resilience with 24 out of 36 IPOs launched this year currently trading above their issue prices, representing a 66% success rate. This compares favorably to the 54% success rate achieved by IPOs launched in 2025, when 37 issues were launched by July-end, with a total of 103 IPOs launched throughout the full year. Market experts attribute the improved performance to enhanced pricing discipline and market maturity, with Dharmesh Mehta from DAM Capital Advisors noting that companies are choosing to raise less capital rather than accept greater equity dilution at lower valuations. However, the smaller deal sizes could hurt India's prospects of posting another record year for IPO fundraising.
The reductions in deal sizes have been significant, with local institutions driving tougher negotiations on pricing amid subdued foreign participation. Pratik Loonker from Axis Capital explained that investors are becoming selective amid weaker risk appetite, heightened volatility in secondary markets and mixed post-listing performance of recent IPOs. The combination is prompting issuers to prioritize deal execution over maximizing fundraising or achieving lofty valuations. However, not every large deal has been derailed - Jio Platforms and the National Stock Exchange of India remain on track, expected to be the only Indian IPOs exceeding $1 billion this year, with both companies filing draft prospectuses in July and launching in September or October if current plans hold.
The current market conditions suggest a shift toward more realistic valuations and selective deal execution. Market expert Arun Kejriwal noted that the stronger performance of 2026 IPOs indicates improved sentiment toward primary-market valuations compared to last year. However, the smaller deal sizes could hurt India's prospects of posting another record year for IPO fundraising. The upcoming listing schedule includes H.R. Hygiene Products and Manipal Health Enterprises on August 5, followed by Juniper Green Energy, MV Electrosystems, Dhaval Packaging and Oneindig Technologies on August 6, concluding with Fusion Klassroom Edutech and G.V. Electricals on August 7.
