Indian companies are reducing their expectations for initial public offerings as market conditions weaken. Start-ups and private firms that previously sought billion-dollar listings are now shrinking deal sizes or postponing plans. So far in 2026, capital raised through public offerings totaled $5.78 billion — a 21% drop from $7.32 billion in the same period last year. This sharp decline signals a slowdown after two years of unprecedented fundraising success.
The previous two years saw record-breaking IPO activity, with $22.36 billion raised in 2025 and $20.65 billion in 2024. However, the current shift reflects a broader slump in India’s capital markets. Foreign investors have scaled back participation, leaving local institutions as the dominant buyers. These domestic investors are now pushing harder for better pricing and terms, which has forced companies to reconsider their strategies.
Several high-profile firms have significantly reduced their IPO targets. For example, Manipal Health, backed by Temasek, initially aimed for a $1 billion offering but trimmed it to $960 million. Indo-MIM, which had sought up to $700 million, managed to raise just $396 million in its recent listing despite a 72 times subscription rate. Juniper Green Energy also scaled back its IPO, lowering the size from $314 million to $188 million.
Other major companies are adopting alternative fundraising strategies. Zepto, a rapid-commerce platform, bypassed an IPO and instead arranged a pre-IPO placement with key investors. Sify Infinit Spaces paused its offering, and PhonePe, backed by Walmart, has delayed its listing. These moves highlight how companies are adapting to shifting investor sentiment and market volatility.
Despite the trend of scaled-down offerings, a couple of major listings remain active. Jio Platforms, the subsidiary of billionaire Mukesh Ambani, and the National Stock Exchange of India are the only IPOs expected to exceed $1 billion this year. Both have submitted draft prospectuses with the regulatory body and are planning to launch their offerings in September or October, depending on market conditions.
Experts say the current environment is forcing companies to prioritize deal execution over maximizing fundraising. Investor caution is growing due to weak risk appetite and mixed performance among recently listed companies. Dharmesh Mehta, Managing Director at DAM Capital Advisors Ltd., noted that many firms are choosing to raise less capital rather than dilute their equity at lower valuations. This shift could impact India’s ability to achieve another record year for IPO activity.
Pratik Loonker, Managing Director and Head of Equity Capital Markets at Axis Capital Ltd., explained that the combination of subdued investor confidence, secondary market volatility, and post-listing performance issues is shaping the decision-making process. Companies are adjusting to a more demanding landscape, where achieving high valuations is no longer the top priority.