Author: Nishtha Mehrotra | EQMint
India’s IPO market is continuing to attract strong investor interest despite weakness in the broader stock market. As many as 29 companies are scheduled to list this week, including eight on the mainboard and 21 on SME platforms. The divergence comes as the Nifty 50 extends a prolonged losing streak and foreign investors continue to pull money from Indian equities.
Companies raised a record US$25 billion through public equity markets in the first half of FY27, around 75% higher than a year earlier. In contrast, the Nifty 50 gained only 1.3% between April and September.
September was particularly strong, with 34 companies raising around ₹39,340 crore, or about US$4.1 billion, through IPOs. Nearly 250 companies are also seeking to raise a combined ₹4.65 lakh crore through upcoming IPOs.
The strong primary-market activity is being supported by domestic liquidity from mutual funds, systematic investment plans and domestic institutions. Domestic institutions now account for around 33% of IPO fundraising, compared with 24% in 2021.
However, the IPO boom does not necessarily signal broad-based market optimism. Analysts say the current listing wave is partly driven by a backlog of companies waiting to launch their offerings after regulatory extensions expired.
Investors are also becoming more selective, with companies offering strong fundamentals and reasonable valuations attracting greater interest while aggressively priced issues face more scrutiny.
Disclaimer: This article is for information purposes only and is not investment advice.
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