India’s IPO boom cools as weak markets force issuers to cut back

India’s initial public offering boom is fading, with proceeds down by a fifth from a year earlier as companies cut deal sizes, accept lower valuations and delay listings, raising doubts about sustaining momentum after two record years.
Companies have raised about $5.78 billion through public offerings so far in 2026, compared with $7.32 billion in the year-earlier period, data compiled by Bloomberg show. That follows record fundraising of $22.36 billion in 2025 and $20.65 billion in 2024.

Several closely watched IPO candidates, including Temasek-backed Manipal Health Enterprises Ltd., Indo-MIM Ltd. and Juniper Green Energy Ltd., have cut the size of their offerings to get deals done. Rapid-commerce firm Zepto Ltd. has opted for a pre-IPO placement, while Sify Infinit Spaces Ltd. has put its offering on hold and Walmart Inc.-backed PhonePe Ltd. has deferred its listing plans.


The deterioration reflects a broad weakening in India’s capital markets. Companies that only months ago were pursuing lofty valuations are now dialing back their ambitions. Local institutions, which have emerged as the dominant buyers amid subdued foreign participation, are driving tougher negotiations on pricing, investment bankers said.

“Rather than accept greater equity dilution at lower valuations, many companies are choosing to raise less capital,” said Dharmesh Mehta, Managing Director and Chief Executive Officer at DAM Capital Advisors Ltd. The smaller deal sizes could hurt India’s prospects of posting another record year for IPO fundraising, he said.

The reductions in deal sizes have been significant. Manipal Health, which had initially planned to raise more than $1 billion, cut the size to $960 million. Indo-MIM, 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 cut its planned IPO size from $314 million to $188 million. Zepto on Saturday said it agreed on a private share sale to major investors. The move follows investors assigning the company a valuation that was sharply lower than its peak of $7 billion, Bloomberg previously reported.

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, Equity Capital Markets at Axis Capital Ltd. “The combination is prompting issuers to prioritize deal execution over maximizing fundraising or achieving lofty valuations.”