IPO proceeds fall to $5.78B from $7.32B a year ago. Manipal, Indo-MIM, Juniper Green cut sizes. Jio and NSE IPOs in September may test market appetite.
Alpha Score of 51 reflects moderate overall profile with weak momentum, moderate value, moderate quality, moderate sentiment.
India’s initial public offering boom is losing steam. Companies have raised about $5.78 billion through public offerings so far in 2026, down 21% from $7.32 billion in the same period last year, data compiled by Bloomberg showed. That follows two record years: $22.36 billion in 2025 and $20.65 billion in 2024.
The slowdown reflects a broad weakening in India’s capital markets. Companies that only months ago pursued lofty valuations are now dialing back. Local institutions have emerged as the dominant buyers amid subdued foreign participation, driving tougher negotiations on pricing, investment bankers said.
Several closely watched IPO candidates have cut the size of their offerings to get deals done. Temasek-backed Manipal Health Enterprises Ltd. reduced its planned raise from more than $1 billion to $960 million. Indo-MIM Ltd., 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 Ltd. cut its planned IPO size from $314 million to $188 million.
“Rather than accept greater equity dilution at lower valuations, many companies are choosing to raise less capital,” said Dharmesh Mehta, managing director and CEO at DAM Capital Advisors Ltd. The smaller deal sizes could hurt India’s prospects of posting another record year for IPO fundraising, he said.
Rapid-commerce firm Zepto Ltd. has opted for a pre-IPO placement instead of a public offering. The move followed investors assigning the company a valuation sharply lower than its peak of $7 billion, Bloomberg previously reported. Sify Infinit Spaces Ltd. has put its offering on hold, and Walmart Inc.-backed PhonePe Ltd. has deferred its listing plans.
Not every large deal has been derailed. Billionaire Mukesh Ambani’s Jio Platforms Ltd. and the National Stock Exchange of India Ltd., expected to be the only Indian IPOs exceeding $1 billion this year, remain on track. Both companies filed draft prospectuses with the market regulator in July and are expected to launch their offerings in September or October, if current plans hold.
“Investors are becoming selective amid weaker risk appetite, heightened volatility in secondary markets and mixed post-listing performance of recent IPOs,” said Pratik Loonker, managing director and head of equity capital markets at Axis Capital Ltd. “The combination is prompting issuers to prioritize deal execution over maximizing fundraising or achieving lofty valuations.”
The shift in tone marks a sharp reversal from the frenzy of 2024 and 2025, when India’s IPO market was among the busiest globally. Whether the current crop of large issuers can revive confidence will depend on post-listing performance and a stabilisation of secondary markets, bankers said.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.