₹1.77 lakh crore IPO fundraising, but listing gains fell to 7%: What changed in FY26?

India’s primary market delivered a record year in FY26, with 109 mainboard IPOs raising approximately ₹1.77 trillion. However, record fundraising came alongside weaker listing gains and lower oversubscription, signalling a shift from broad-based IPO enthusiasm towards greater selectivity among investors, according to Grant Thornton Bharat’s “IPOs in India FY26” report..

Record fundraising

Across mainboard and SME platforms, India saw 366 IPOs raise around ₹1.9 trillion during FY26. The strong activity came despite geopolitical uncertainty, inflationary pressures and volatile global markets, with domestic participation and a growing investor base supporting the capital markets.

However, investors were less aggressive than in FY25. Average listing gains moderated sharply from 29% in FY25 to 7% in FY26, while average oversubscription declined from 71 times to 39 times. The moderation suggests investors became more conscious of valuations, earnings quality and the longer-term prospects of newly listed companies.

The supplied report does not provide FY25 mainboard IPO count or fundraising figures.

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Why did listing gains fall?

The decline in listing gains indicates that investors are becoming less willing to reward companies simply for entering the public market. According to the report, fundraising success was increasingly linked to pricing discipline, earnings quality and institutional participation.

Investor risk appetite also became more measured. Global developments, commodity prices and currency movements increasingly influenced market sentiment, even as domestic participation continued to support IPO activity.

Governance gains importance

Investors are increasingly looking beyond revenue growth and headline valuations. The report highlights governance standards, transparent disclosures, earnings visibility and sustainable growth prospects as factors receiving greater attention.

For companies, this means a successful subscription or listing is no longer sufficient. IPO preparedness—including governance, disclosure quality, capital allocation and the ability to operate as a public company from day one—is emerging as an important differentiator.

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What FY26 means for IPO investors

The FY26 numbers point to a more mature IPO market rather than weaker capital formation. According to the report, companies continued to raise substantial capital, but investors became more selective about where they deployed money.

The report described FY26 as an important inflection point, with record issuance accompanied by moderating listing gains and greater emphasis on governance, earnings quality and valuation realism.

For retail investors, the shift means subscription numbers and listing-day expectations may no longer be enough. Business fundamentals, valuation, governance and sustainable earnings are becoming increasingly important when evaluating an IPO and its potential beyond the listing day.