The Daily PulseBusiness
Smaller Deals and Lower Valuations Shape India's Record IPO Rush
Reported by Sneha Patil (Staff Writer) · Livemint - Markets ·
Photo: Wikimedia CommonsIndia is seeing a record number of initial public offerings, but companies are choosing smaller deal sizes and lower valuations instead of ambitious fundraising targets. The September quarter registered 63 initial public offerings, which included 32 in September and six listings on a single day.
Size and Scale
The average IPO size in 2026 stood at about ₹1,450 crore at the end of October. This covered 109 offerings worth a combined ₹1.58 trillion, compared with 103 offerings worth ₹1.76 trillion in 2025. When stripping out the four largest offerings from Jio Platforms Ltd, the National Stock Exchange of India Ltd, Manipal Health Enterprises Ltd, and SBI Funds Management Ltd, the average issue size dropped to ₹820 crore this year from ₹1,700 crore in 2025.
Market Shifts
Data from Uniqus Consultech Inc. shows that of the 58 third-quarter initial public offerings featuring fresh shares, 32 reduced their issue size by an average of more than 20%, with some scaling back by up to 50%. Meanwhile, 20 issuers kept offer sizes unchanged and six increased them. Pranav Haldea, managing director of Prime Database Group, noted that this decline in average size shows investor appetite is price-sensitive and selective. K Raghuram, partner at Uniqus, explained that institutional buyers are benchmarking valuations against current secondary market multiples rather than peak figures from 2024 and 2025.
Regulatory Timelines
Early 2026 faced conflicts and geopolitical uncertainty that delayed companies with valid approvals from the Securities and Exchange Board of India. A one-time relief measure by Sebi allowed these firms to complete listings by September. Promoters chose to lock in guaranteed liquidity rather than wait for better secondary market conditions.
Context
India's primary market often sees shifts in deal sizes and valuations as companies balance their capital needs against changing investor sentiment. Regulatory deadlines and private equity exit timelines also push firms to complete listings rather than wait indefinitely for peak market conditions. This environment rewards companies that accept realistic pricing to secure funding successfully.
ExplainerWhy this matters
What Happened
Companies launching initial public offerings in India are shrinking their deal sizes and accepting lower valuations to ensure their share sales succeed.
Why It Matters
This shift reflects a major change in how institutional investors approach pricing. Instead of paying peak valuations seen in previous years, institutional buyers are forcing companies to align share prices with current secondary market realities. This discipline helps prevent over-priced listings and protects retail and institutional investors from immediate post-listing losses.
What Happens Not
Market observers expect primary market activity to remain heavy, with potential capital raises anticipated in the December quarter from major names and a large pipeline of companies waiting for final market entry.
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