IPO fundraising hits 9-month low in Jan amid market volatility
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India’s primary market seems to be taking a breather in January 2026, with initial public offering (IPO) fundraising slipping to its lowest level since April 2025, both in terms of the number of issues and ther amount of capital raised.
According to month-wise IPO data, only three companies—Shadowfax Technologies, Bharat Coking Coal Ltd, and Amagi Media Labs—tapped the primary market in January 2026, raising ₹4,765 crore. This marked a sharp drop from December 2025, when 10 IPOs together mobilised ₹21,857.94 crore, and represented the weakest monthly showing since April 2025, when just one IPO raised ₹2,980.76 crore, according to data from PRIME Database Group, a leading provider of capital market data.
The slowdown in IPO activity was largely attributed to volatility in the secondary market, with benchmark indices—the Sensex and the Nifty—declining by over 4% year-to-date, weighed down by geopolitical tensions, global risk aversion, and investor caution ahead of the Union Budget, scheduled to be tabled in Parliament on February 1. The uncertain market environment has prompted several issuers to defer launches and reassess valuation expectations.
The January lull follows a blockbuster year for India’s IPO market. Calendar year 2025 emerged as a watershed year, with 103 Indian corporates raising an all-time high of ₹1,75,901 crore through mainboard IPOs—around 10% higher than the previous peak of ₹1,59,784 crore mobilised by 91 IPOs in 2024. Activity remained particularly strong in the second half of the year, with October 2025 alone seeing ₹45,187.66 crore raised across 10 issues, while September 2025 recorded the highest monthly deal count at 25 IPOs.
January 2026
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Despite the near-term moderation, industry experts remain bullish on the medium- to long-term outlook, citing a deep and visible IPO pipeline.
“The confluence of several unsettling forces and lingering uncertainty is forcing companies to wait before launching their IPOs. The secondary market is already jittery due to heightened geopolitical tensions, and it is obvious that not many promoters and lead managers would be interested in braving such conditions. Domestically, market participants are waiting for a clear direction to emerge after the Union Budget,” said Anil Sharma, co-founder of IPO Central, a primary market research platform.
Echoing this optimism, Mahavir Lunawat, chairman and managing director of Pantomath Capital, expects a strong year ahead, projecting close to ₹4 lakh crore of capital formation through equity markets in 2026. He noted that the market’s structural maturity is becoming increasingly evident.
“The simultaneous rise in issuance volumes, average deal sizes, and institutional discipline points to a durable capital-raising framework. With regulatory guardrails continuing to strengthen and pipeline visibility improving, we expect over ₹4 lakh crore worth of IPO activity in 2026, supported by strong domestic participation and selective global capital,” Lunawat said.
According to PRIME Database Group data, the IPO pipeline remains robust. As of now, 96 companies proposing to raise around ₹1.25 lakh crore have already secured Sebi approval, while another 106 companies seeking to mobilise approximately ₹1.40 lakh crore are awaiting clearance. In addition, several companies—including 85 new-age technology firms planning to raise nearly ₹1.50 lakh crore—are preparing to file their offer documents.