With September setting a three-decade record for the number of companies launching their Initial Public Offerings (IPOs), data shows that funds raised through these offerings in the first half of this fiscal year are 35% higher than in the same period of FY25.
A total of 65 firms are set to raise up to Rs 69,532.91 crore via IPOs in H1FY26, compared with 40 companies that raised Rs 51,390 crore between April and September 2024. September alone accounted for nearly 20% of the proceeds, with 25 IPOs—the highest monthly tally since January 1997—collectively garnering Rs 13,302 crore.
September surge: A three-decade IPO rush
This surge follows a lull in primary market activity between February 14 and April 28, when bearish sentiment eroded listing gains and dampened retail investor appetite. Retail subscription for Hexaware Technologies’ Rs 8,750 crore IPO, for instance, was a mere 0.1% on the final day.
Pranav Haldea, managing director of Prime Database Group, described the first half of the year as a mixed bag for IPOs. April saw just one IPO, weighed down by market volatility triggered by Trump’s policies. But by September, activity surged to a three-decade high in deal volume. Issue sizes also reflected the bifurcation, while the mega Rs 12,500 crore IPO by HDB dominated headlines, numerous smaller offerings raised between Rs 100 crore and Rs 500 crore.
In FY25, as the market declined from its September peak, average listing gains fell to 22% from 33% in the first half of the year.
Many companies, including Hexaware, that raised funds after February, also cut their offer sizes to adjust to the market environment. Others include National Securities Depositories Ltd, Aether Energy, LG India, and Leela Hotels.
In the first half of this year, average listing gains declined further to 11%. However, issues like Urban Company, Highway Infrastructure, Aditya Infotech, and GNG Electronics delivered the highest listing returns, ranging from 47% to 67%.
Maturity and momentum: What’s next for the IPO pipeline
Sudip Bandyopadhyay, Group Chairman of Inditrade Capital, believes IPOs are now priced more reasonably, reflecting the maturity of markets and investment bankers. He expects the total amount raised this year to surpass the Rs 1,62,386.66 crore raised by 78 IPOs last year. “In September the upswing was driven by smaller companies but the IPOs of bigger and new generation companies to open in October and November will be key to watch,” he said.
Upcoming IPOs include Tata Capital, raising Rs 17,200 crore, Groww, Rs 7,000 crore, and LG Electronics, Rs 15,000 crore, all set to launch in October. Haldea further added that volatility remains elevated amid lingering uncertainties. Yet, the IPO pipeline is substantial. For companies nearing the one-year expiration of their Sebi approval, options narrow to either letting approvals lapse and re-filing later or launching at reduced issue sizes and valuation, he said. His advice to retail investors looking at IPOs as long term investment is to look at both the quality of the company and the valuation at which it is being offered.