India's Equity, Bond Fundraising Declines in H1 2026; M&A Activity Rises 31%

India's public capital markets witnessed lower fundraising activity during the first half (H1) of 2026, while mergers and acquisitions (M&A) recorded year-on-year growth. According to the LSEG India Investment Banking Review, equity and bond issuance declined compared with the corresponding period last year, whereas M&A deal value increased. 

Equity Fundraising Falls 38% in H1 2026 

According to the LSEG report, equity capital market (ECM) issuance declined 38% year-on-year to US$16.5 billion, marking the lowest first-half fundraising in 3 years. 

Follow-on offerings remained the largest contributor to equity fundraising, accounting for 77% of total proceeds at US$12.7 billion. However, follow-on issuances also declined 33% compared with H1 2025. 

Initial public offerings (IPOs) raised US$8.8 billion, down 38.5% year-on-year, as fewer companies entered the public markets during the period. 

Among notable equity issuances were transactions by Vishal Mega Mart, JSW Infrastructure, and Adani Ports. The Industrials sector led equity fundraising with US$4.1 billion, followed by the Retail and Energy & Power sectors. 

According to the report, Jefferies LLC ranked first in the equity capital market league table, underwriting US$2.56 billion of deals and securing a 15.5% market share. 

Read More: US Remains India's Largest LPG Supplier in June 2026; Imports Rise 3% 

Bond Issuance Drops to a 4-Year Low 

Debt capital market activity also moderated during H1 2026. 

According to LSEG, total bond issuance declined 42% year-on-year to US$37.6 billion, the lowest first-half level in 4 years. 

Financial institutions remained the largest issuers, raising US$29.2 billion, representing approximately 78% of total bond issuance. However, fundraising by the sector declined 40.5% compared with the record first half of 2025. 

Axis Bank led the debt capital market underwriting rankings with US$4.62 billion in proceeds and a 12.3% market share. 

M&A Activity Increases 31% 

In contrast to public fundraising, mergers and acquisitions recorded higher activity during the first half of the year. 

According to the report, any Indian involvement M&A reached US$86.9 billion in H1 2026, representing a 31% increase compared with the corresponding period last year. This was the highest first-half M&A value since 2022. 

The Materials sector accounted for the largest share of deal value, supported by multiple Vedanta-related transactions. 

Among the largest transactions were the US$20.6 billion Vedanta Aluminium Metal deal and Sun Pharma's US$11.4 billion acquisition of Organon & Co's business in the United States. 

Investment Banking Fees Decline 

The report showed that total investment banking fees in India declined 20% year-on-year to US$614 million, reflecting lower capital market activity. 

Citi ranked first in overall investment banking fees, earning US$60.3 million and capturing a 9.8% wallet share. The bank also topped the M&A advisory rankings. 

Other leading firms included Ernst & Young in advisory services, Jefferies LLC in equity capital markets, and Axis Bank in debt capital markets. 

Conclusion 

According to the LSEG India Investment Banking Review, India's equity and bond fundraising declined during H1 2026, while mergers and acquisitions recorded year-on-year growth. The report indicates that companies executed more strategic transactions even as activity in the public capital markets moderated. 

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