IPO – India Sees Record IPO Fundraising Despite SME Market Slowdown
IPO – India’s primary market delivered an exceptional performance in the financial year 2025–26, setting a new benchmark in capital mobilisation through initial public offerings. According to data released by the National Stock Exchange, companies collectively raised around Rs 1.8 lakh crore during the year, making it the highest annual fundraising figure recorded so far.
Strong Growth in Mainboard Listings
The surge in fundraising was largely driven by mainboard IPOs, which saw unprecedented activity. A total of 108 companies entered the mainboard segment, together raising approximately Rs 1.7 lakh crore. This marks a record both in terms of the number of listings and the total capital raised within this category.
Overall, 219 companies were listed on the exchange during the fiscal year, underlining the growing confidence among businesses to tap public markets. The strong participation also reflects steady investor interest, even amid fluctuating global conditions.
SME Segment Shows Signs of Moderation
While the broader IPO market remained robust, the SME segment experienced a noticeable slowdown. A total of 111 SME companies were listed on the NSE Emerge platform, raising about Rs 5,363 crore during the year.
Compared to the previous fiscal, the SME segment saw a decline of 32 percent in the number of issues and a 25 percent drop in funds raised. This moderation suggests a more cautious approach among smaller enterprises and investors in this space.
Market Capitalisation Gets a Major Boost
The companies that went public during FY26 contributed significantly to the overall market value. By the end of the fiscal year, these newly listed firms had added nearly Rs 12.5 lakh crore to India’s total market capitalisation.
This increase highlights not only the scale of listings but also the strong demand from investors, which helped sustain valuations and market expansion.
Rise in Additional Equity Fundraising
Beyond IPOs, already listed companies also raised substantial funds through various equity routes. Total fundraising via additional issuances reached Rs 2.4 lakh crore, reflecting a 6 percent increase compared to the previous year.
Among the different methods, preferential allotments accounted for the largest share at 54 percent. Qualified institutional placements contributed 28 percent, while rights issues made up 18 percent of the total.
Changing Trends Within Fundraising Methods
A closer look at fundraising patterns reveals notable shifts. Funds raised through preferential allotments more than doubled, registering a sharp 105 percent increase to Rs 1.3 lakh crore. Rights issues also witnessed a strong rise, jumping 172 percent to nearly Rs 42,700 crore.
However, qualified institutional placements (QIPs) saw a significant decline. Fundraising through this route dropped by 47 percent year-on-year, amounting to around Rs 67,600 crore. This suggests a shift in preference toward other capital-raising mechanisms.
IPO Market Remains Resilient Amid Global Challenges
Despite ongoing global uncertainties, including geopolitical tensions in West Asia, India’s IPO market maintained its momentum. Investor confidence remained largely intact, allowing companies to continue accessing capital markets without major disruptions.
March 2026 stood out as a particularly strong month. During this period, nine mainboard IPOs collectively raised Rs 8,056 crore, while six SME IPOs brought in Rs 242 crore.
March Records Highest Activity in Six Years
The combined fundraising of Rs 8,297 crore in March marked the highest IPO activity for the month in the past six years. This performance underscores the resilience of India’s capital markets and their ability to attract investment even during uncertain times.
Overall, FY26 has emerged as a landmark year for India’s primary market, driven by record-breaking mainboard activity and sustained investor participation, even as the SME segment showed signs of cooling.