Indian IPO market clocks record Rs 84,400 crore in H1 FY27, fundraising jumps 30%

An initial public offering, or IPO, is a company’s first public sale of shares. It changes the company from privately held to publicly traded. The company raises money from investors, while investors receive an ownership stake represented by shares. Public listing can also make the company more visible and create a market for its shares.

For example, 71 mainboard companies entered India’s public markets during H1 FY27. Together, mainboard IPOs raised Rs 84,400 crore. Investors bought shares in these offerings, giving the companies capital while receiving shares that could later be traded on the market.

An IPO does not guarantee success. The article says investors increasingly focused on fundamentals, pricing, governance and the use of proceeds. Average listing-day gains reached 18% in H1 FY27, but the report also stressed that successful execution depends on choosing the right window and being prepared.

Indian mainboard companies raised Rs 84,400 crore through IPOs during H1 FY27, covering April to September 2026. This was a major expansion in primary-market fundraising. It shows that companies found a receptive market for new share offerings and that investors supplied substantial capital.

The comparable H1 FY26 total was Rs 64,900 crore. Fundraising therefore increased by Rs 19,500 crore, or roughly 30%. The number of mainboard companies entering the public markets also rose, from 55 to 71. Average listing-day gains and retail oversubscription improved as well.

The acceleration was concentrated in Q2 FY27. The report said 94% of first-half capital was raised during the second quarter. September alone produced Rs 40,400 crore from 32 companies, the highest monthly IPO mobilisation on record.

Q2 FY27 was much stronger because IPO-ready companies could act when the issuance window reopened. Investor participation also strengthened, and the market absorbed a larger supply of offerings. The first quarter had been subdued, so activity accelerated sharply once companies were prepared to launch and demand improved.

The clearest example was September. Thirty-two companies raised a combined Rs 40,400 crore. That amount represented more than half of Q2’s fundraising and became the highest monthly IPO mobilisation on record. Across the first half, 94% of capital was raised in Q2.

The surge suggests timing and preparation worked together. Companies used the reopened window, while strong oversubscription showed investor interest. Still, Grant Thornton Bharat said demand was selective, with investors examining fundamentals, pricing, governance and the use of proceeds. A large pipeline does not automatically ensure completed listings.

A listing-day gain means the average IPO share price ended its first trading day above its offer price. An 18% average gain suggests many investors valued newly listed shares more highly than their IPO prices. Retail oversubscription of 28 times means retail applications greatly exceeded the shares reserved for that group.

The comparisons reinforce the signal. Average listing-day gains rose from 10% in H1 FY26 to 18% in H1 FY27. Average retail oversubscription increased from 25 times to 28 times. Together, the figures show stronger participation and intense competition for available shares.

However, the figures do not mean every IPO performed equally well. Grant Thornton Bharat said investor demand stayed selective and focused on fundamentals, pricing, governance and use of proceeds. The market could absorb more offerings, but companies still needed strong preparation and credible execution.

Domestic institutional investors, or DIIs, are India-based institutions that invest in financial markets, such as mutual funds, insurers and pension-related funds. Foreign portfolio investors, or FPIs, are overseas investors that buy financial assets in India without necessarily controlling the companies. Both can influence share prices and market liquidity.

During Q2 FY27, DIIs recorded net equity inflows of Rs 1,69,400 crore. FPIs recorded net inflows of Rs 13,900 crore. The domestic total was therefore more than twelve times the foreign total, showing how strongly local institutions supported the equity market during the quarter.

This support came despite a 5.7% decline in the Nifty 50 during September. The figures indicate that domestic institutions were an important source of market demand while IPO activity accelerated. The article does not state why the two investor groups’ inflows differed or how long that pattern will continue.

SEBI’s confidential pre-filing mechanism allows a company to submit draft offer documents privately before publicly announcing its IPO plans. The company can enter regulatory scrutiny without immediately revealing its intended offering or financial information. This gives prospective issuers greater control over when their plans become public.

The route has gained traction. Since 2022, 48 companies have used it, including 24 during the first five months of 2026. Companies from consumer internet, fintech, logistics and technology have used the mechanism. Issuers have up to 18 months to launch their offerings after receiving SEBI’s observations.

The mechanism may make the visible IPO pipeline look smaller than actual activity. Grant Thornton Bharat said large companies could already be under SEBI review while remaining outside the public pipeline. Confidential filing does not guarantee a listing; the company must still decide to proceed and meet the relevant requirements.

An IPO gives a company a way to raise capital by offering shares to public investors. The money comes from investors who buy those shares at the offering price. In exchange, they receive an ownership stake in the company, represented by shares that can be traded once the company enters the public markets.

The article provides a large example from India’s H1 FY27 market. Seventy-one mainboard companies entered the public markets and raised Rs 84,400 crore. Those companies obtained capital, while participating investors received shares. The shares’ market prices could then change after listing, as shown by the average 18% listing-day gain.

An IPO is not simply a fundraising event. Investors assess fundamentals, pricing, governance and the use of proceeds before committing money. The company must also be ready for regulatory scrutiny and public-market expectations. The article shows that strong demand helps, but it does not remove those requirements.