New Delhi — India’s primary market kicked off 2026 on a robust note, with initial public offerings (IPOs) raising $2.5 billion in the first quarter — a 7.8 per cent year-on-year rise and the strongest January–March performance since 2018, according to a report by London Stock Exchange Group.
India accounted for around 8 per cent of global IPO proceeds during the quarter, reinforcing its position as a key destination for public listings. The broader equity capital markets also showed resilience despite global uncertainties affecting investor sentiment.
Follow-on offerings dominated fundraising activity, contributing 58 per cent of total proceeds. Sector-wise, financial companies led the pack, raising $1.2 billion and capturing over one-fifth of the market. This was supported by large deals, including the IPO of Raajmarg Infra Investment Trust.
The energy and power sector emerged as the second-largest contributor, raising $1.0 billion — a sharp 127 per cent increase compared to last year. Retail participation also surged significantly, nearly tripling to $893.4 million and accounting for a 15.1 per cent share.
However, overall dealmaking remained subdued. Mergers and acquisitions involving India dropped 44.5 per cent year-on-year to $17.4 billion, reflecting caution among investors. Meanwhile, bond issuances by Indian entities totalled $19.5 billion, down 39 per cent from a high base last year — the weakest first quarter in a decade.
Financial institutions continued to dominate bond fundraising, accounting for more than 70 per cent of total issuance. Elaine Tan from LSEG Deals Intelligence noted that dealmakers have begun the year cautiously, focusing on scale, AI adoption, domestic consolidation, and portfolio divestitures amid ongoing uncertainty.
With inputs from IANS