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Initial public offering (IPO) activity in India has remained remarkably resilient through the first half of fiscal year 2027, even as global uncertainty battered the broader equity market. Analysts say this resilience reflects growing investor preference for attractively priced, fundamentally sound new listings amid a subdued secondary market.
As many as 78 companies listed on the mainboard in the first half of FY27 (April-September), up from 65 in the year-ago period—the highest in at least six years. The average issue size rose 12% year-on-year to more than ₹1,200 crore, according to Mint’s analysis of Primeinfobase data. Overall, mainboard companies raised 35% more in H1 FY27, with the total amount increasing toa six-year high of ₹94,184 crore from ₹69,533 crore in H1 FY26.
Apart from the National Stock Exchange's ₹22,563-crore mega issue, the market comfortably absorbed two near- ₹10,000-crore offerings from SBI Funds Management and Manipal Health Enterprises in H1 FY27, helped by strong domestic demand. In contrast, H1 FY26 saw just one IPO of more than ₹10,000 crore, with HDB Financial Services raising ₹12,500 crore.
Steady capital inflows through retail investors’ systematic investment plans (SIPs) and domestic institutional investors (DIIs) have helped larger issuances sail through even amid severe market volatility, said Prashant Singhal, partner, and clients and industries leader at EY India.
Rising DII ownership of the Nifty 500, to 21% in June 2026 from 19.6% a year earlier, points to a deeper pool of domestic institutional capital supporting equities, even as foreign ownership fell to 17% from nearly 19%, according to Motilal Oswal Financial Services. Monthly SIP contributions also hit a record ₹32,297 crore in August, as per Association of Mutual Funds in India (Amfi) data, further strengthening the domestic capital pool available for IPOs.
As a result, median subscription rate in IPOs rose to around 35x in H1 FY27 from 21x a year earlier, indicating rising demand for new listings. More “honest” valuations of this year’s offerings, after several FY26 IPOs delivered lacklustre returns in the secondary market, left greater room for listing gains and led to stronger participation from investors, said Bhatt of Spark Capital.
Median listing gains in H1 FY27 IPOs trebled to 15% from 5% a year earlier, with ESDS Software Solution even doubling on its listing day, the analysis showed. In H1 FY26, the highest listing-day gain was 75%, posted by Highway Infrastructure. Moreover, only 20% of H1 FY27 debutants fell on listing day, compared with 35% a year earlier, suggesting that stronger listing gains were more broad-based across this year’s cohort.
But the stronger response to IPOs does not mean investors are willing to back every new listing. Bhatt said investors have grown more cautious and selective, and the strong first-half performance does not necessarily mean the momentum will carry into the next fiscal year. “If a few aggressively priced mega-listings trade poorly, that window shuts fast,” he cautioned.
This selectivity is already evident in the small and medium enterprise (SME) segment, where listings fell to 137 in H1 FY27 from 156 a year earlier, Mint’s analysis showed. Funds raised also declined 11% year-on-year to ₹6,012 crore, while median subscription levels halved to around 3x from nearly 6x, pointing to a clear moderation in investor appetite.
Weaker post-listing performance has made investors more risk-averse, while higher compliance costs have also prompted smaller issuers to be more selective about tapping the market, said Pranav Haldea, managing director at Primeinfobase.
The first half, therefore, points to a growing bifurcation in India’s IPO market. Mainboard offerings continue to benefit from deep domestic liquidity and greater pricing discipline, while the SME segment is undergoing a reset after last year’s exuberance.
This is the fourth part of a five-part series evaluating the first half of fiscal year 2027. The firstpart examined the performance of domestic markets, the second looked at the best-performing asset classes, and the third covered trends in private consumption. The final part will assess corporate India’s investment appetite during the period.
Abhinaba writes deep-dive analytical stories on financial markets, corporate India and the economy. After finishing his post-graduation in finance from King’s College London, he moved into journalism three years ago with a goal to “simplify finance for all”. From tracking macroeconomic shifts and dissecting company fundamentals to decoding market sentiment, he connects the dots through data-driven storytelling, helping readers see the bigger picture.<br><br>Abhinaba writes across sectors and asset classes, analysing IPOs, decoding moves in precious metals and crude oil, and unpacking trends across public and private markets. Collaborating across beats, he aims to be Mint’s “jack of all trades”. More recently, he has also experimented with new storytelling formats, including crisp video explainers for Mint’s YouTube channel.<br><br>Across formats and topics, his goal remains the same: telling nuanced, insight-rich stories for his readers. When not writing, Abhinaba unwinds by cycling through the streets of Bandra in Mumbai, in search of fresh air and clearer thoughts. On quieter days, he turns to yoga, his preferred antidote to volatile markets, proving that while markets rarely find balance, at least the body occasionally can.
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