IPO fundraising has fallen 21% so far in 2026 as companies cut issue sizes, lower valuations and delay listings amid weaker market sentiment.
Companies including Manipal Health, Indo-MIM and Juniper Green Energy reduced IPO sizes, while Zepto, Sify Infinit Spaces and PhonePe deferred or paused listing plans.
Bankers say investors have become more selective, though Jio Platforms and NSE continue to target billion-dollar IPOs later this year.
India's IPO Boom Loses Steam As Fundraising Falls 21%, Companies Cut Deal Sizes
Companies are reducing issue sizes, accepting lower valuations and postponing listings as weaker market sentiment and cautious investors reshape India's once-booming IPO market
India's IPO Boom Loses Steam As Fundraising Falls 21%, Companies Cut Deal Sizes Freepik
Summary
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India's initial public offering (IPO) market is showing signs of losing momentum after two record years, with fundraising falling more than a fifth in 2026 as companies reduce issue sizes, accept lower valuations and postpone listings amid weaker investor sentiment.
Companies have raised about $5.78 billion through IPOs so far this year, compared with $7.32 billion during the corresponding period of 2025, according to Bloomberg data. The slowdown comes after Indian firms raised a record $22.36 billion through IPOs in 2024.
Companies Prioritise Execution Over Valuation
Several high-profile IPO candidates have scaled back their fundraising ambitions to improve the chances of successful listings.
Temasek-backed Manipal Health Enterprises reduced its IPO size from more than $1 billion to about $960 million, while Indo-MIM raised around $396 million, well below the nearly $700 million it had initially targeted earlier this year despite attracting more than 72 times subscription.
Similarly, Juniper Green Energy cut its planned IPO size from $314 million to $188 million.
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Meanwhile, quick-commerce firm Zepto opted for a pre-IPO private placement instead of proceeding immediately with its public issue. Sify Infinit Spaces has put its IPO on hold, while PhonePe, backed by Walmart, has deferred its listing plans.
Investors Turn More Selective
Investment bankers said the slowdown reflects weakening sentiment in India's capital markets, with domestic institutional investors playing a greater role in pricing negotiations as foreign participation remains subdued.
"Rather than accept greater equity dilution at lower valuations, many companies are choosing to raise less capital," Dharmesh Mehta, Managing Director and Chief Executive Officer at DAM Capital Advisors, told Bloomberg.
He added that smaller deal sizes could make it difficult for India to surpass the record IPO fundraising achieved over the past two years.
Pratik Loonker, Managing Director and Head of Equity Capital Markets at Axis Capital, said investors have become increasingly selective amid weaker risk appetite, heightened volatility in secondary markets and mixed post-listing performance of recent IPOs.
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According to Loonker, issuers are now prioritising successful execution over maximising fundraising or pursuing aggressive valuations.
Despite the broader slowdown, some marquee offerings remain on track.
Jio Platforms and the National Stock Exchange of India (NSE), both expected to raise more than $1 billion, filed their draft prospectuses in July and are currently targeting listings around September or October, subject to market conditions.