India's Initial Public Offering (IPO) market has lost momentum in 2026, with companies raising around US$5.78 billion so far this year, compared with US$7.32 billion during the same period last year, according to a Business Standard report citing Bloomberg data.
The slowdown comes after two record years for the Indian IPO market, when companies raised US$22.36 billion in 2025 and US$20.65 billion in 2024. Companies are increasingly reducing issue sizes, accepting lower valuations, or postponing public offerings as market conditions become more challenging.
Several companies have revised their IPO plans to improve the chances of successful listings.
Some of the notable changes include:
Manipal Health Enterprises reduced its planned IPO size from more than US$1 billion to around US$960 million.
Indo-MIM lowered its fundraising target from about US$700 million to nearly US$396 million. Despite the reduction, the IPO received strong investor interest, with subscriptions exceeding 72 times.
Juniper Green Energy cut its proposed IPO size from US$314 million to US$188 million.
Zepto opted for a pre-IPO private placement instead of proceeding directly with a public issue.
Sify Infinit Spaces has put its IPO on hold, while PhonePe has deferred its listing plans.
According to the report, investment bankers say domestic institutional investors have become more selective on valuations amid lower participation from foreign investors, resulting in tougher pricing negotiations.
Market participants attribute the slowdown to weaker sentiment in the capital markets.
According to Business Standard, companies that were targeting higher valuations earlier are now prioritising successful deal execution over raising larger amounts. Investment bankers cited weaker risk appetite, volatility in secondary markets, and mixed post-listing performance of recent IPOs as factors influencing investor demand.
As a result, some issuers are choosing to reduce the size of their public offerings instead of accepting greater equity dilution at lower valuations.
Despite the slowdown, some large public issues are still expected to reach the market in 2026.
Jio Platforms and the National Stock Exchange of India have filed their draft prospectuses with SEBI and are expected to launch IPOs in September or October, subject to regulatory approvals and market conditions. Both offerings are expected to exceed US$1 billion, making them among the largest IPOs planned this year.
India's IPO market has moderated in 2026 after two record fundraising years. Lower issue sizes, delayed listings, and more cautious valuation expectations reflect changing market conditions and increased investor selectivity. While several companies have revised their IPO plans, large offerings such as Jio Platforms and the National Stock Exchange of India are still expected to support IPO activity later this year.
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Published on: Aug 3, 2026, 11:46 AM IST
Rakesh Deshmukh
Rakesh Deshmukh is a financial content specialist with around 3 years of experience writing impactful content across equities, mutual funds, IPOs, and personal finance. At Angel One, he decodes real-time market trends and breaking news, helping investors and traders stay updated. He also helps investors make informed decisions by simplifying market fundamentals and technical analysis. He holds a bachelor’s degree in commerce.
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