Average listing-day gains moderated to 7 per cent in FY26 from 29 per cent in FY25, while the average annual performance of listed IPOs stood at a negative 17 per cent, pointing to a more discerning investment environment. | Photo Credit: istock.com

Indian companies raised Rs 1.9 lakh crore through more than 360 IPOs in FY26, keeping the country among the world's busiest primary markets, but a sharp moderation in listing gains and oversubscription signalled that investors are becoming increasingly selective.

According to Grant Thornton Bharat's report on India's IPO market published on Monday, fundraising remained robust despite global uncertainty, geopolitical tensions and volatile market conditions.

However, investor appetite shifted towards companies with stronger fundamentals, better governance, earnings visibility and more disciplined valuations.

Mainboard IPOs hit an all-time high of 109 in FY26, raising around Rs 1.77 lakh crore. This compares to 80 IPOs that mobilised Rs 1.63 lakh crore in FY25. India accounted for 14 per cent of global IPO listings in March 2026, second only to China, the report said.

The resilience of India's capital markets was supported by strong domestic participation and an expanding investor base. However, market sentiment became more measured, with global developments, commodity prices and currency movements increasingly influencing investor decisions.

As per the report, offer for sale (OFS) continued to dominate mainboard IPO proceeds, accounting for 61 per cent, although the fresh issue component rose to 39 per cent, indicating a gradual revival in growth-capital raising.

The shift in investor behaviour was also evident in subscription and listing performance. Average IPO oversubscription fell sharply to 39 times in FY26 from 71 times in FY25, reflecting greater scrutiny of valuations, governance standards and business quality.

Average listing-day gains moderated to 7 per cent in FY26 from 29 per cent in FY25, while the average annual performance of listed IPOs stood at a negative 17 per cent, pointing to a more discerning investment environment.

"In today's IPO market, success is no longer defined by the ability to list, but by the readiness to operate as a public company with the governance, discipline and credibility to sustain investor confidence well beyond the listing day," said Karan Marwah, Partner and CFO Advisory Leader, Grant Thornton Bharat.

The report noted that IPO preparedness has emerged as a key differentiator, with investors increasingly looking beyond headline financial performance to assess governance standards, disclosure quality, capital allocation plans and a company's ability to operate effectively as a listed entity.

Recent regulatory reforms aimed at improving transparency, accessibility and investor protection have further strengthened the IPO ecosystem, it said.

On the SME front, 258 SME IPOs garnered Rs 12,030 crore in FY26, the highest fundraising during the three-year period reviewed. In comparison, 242 SME IPOs collected Rs 9,900 crore in FY25.

Looking ahead, India's IPO pipeline remains healthy, supported by strong domestic participation, structural growth drivers and an expanding investor base.

Companies combining strong fundamentals with robust IPO preparedness are likely to be better positioned to access public markets and sustain investor confidence beyond the listing day, the report said.

Published on August 10, 2026