Summary of this article
Indian IPOs raised a record Rs 84,400 crore in H1FY27.
Average listing day gains jumped to 18 percent this year.
Retail investors and domestic liquidity drove strong primary market growth.
The Indian primary market delivered strong returns for investors during the first half of the 2027 financial year (H1FY27). According to the India IPO Market report by Grant Thornton Bharat, the average listing day gains jumped to 18 per cent in H1FY27, up from 10 per cent in the first half of the previous financial year (H1FY26).
During this period, 71 mainboard initial public offerings successfully raised a record Rs 84,400 crore, marking a 30 per cent increase in total capital generation compared to the corresponding period of the preceding fiscal.
Notably, this strong primary market development comes at a time when the secondary market has traded under pressure. For context, the benchmark Nifty 50 index closed at 22,679.40 on April 1 and at 22,620.45 on September 1, indicating negative 0.25 per cent returns for H1FY27.
The contrast highlights a volatile environment for D-Street-bound stocks, making the robust listing gains in the IPO space stand out even more clearly. The Grant Thornton report also noted a 5.7 per cent decline in the Nifty 50 index during September amid shifting broader market sentiment. However, the average listing day gains indicate that the primary market has bucked the overall trend seen in the secondary market. Here’s a look at some of the key factors which drove the rise in listing day gains seen in the primary market:
Retail Investors Drive Momentum
One of the key factors which drove the average listing day gains higher was an increase in retail participation. According to the report, the average retail oversubscriptions climbed to 28 times in the first half of the 2027 financial year, up from 25 times in H2FY27. The aggressive retail demand played a crucial role in improving overall demand quality and ensuring most issues attracted strong bids.
Domestic Institutional Liquidity
Domestic institutional liquidity also acted as a primary anchor for the primary market throughout this volatile period. Domestic institutional investors (DIIs) poured a net Rs 1,69,400 crore into Indian equities during the second quarter. The influx of domestic capital is also expected to have provided a safety net to the primary market.
Quality and Corporate Preparedness
The influx of capital was directed toward businesses demonstrating solid fundamentals. According to the report, deal quality and strict pricing discipline mattered far more to the market than headline subscription numbers. Furthermore, successful execution relied heavily on corporate preparedness, allowing IPO ready companies to launch quickly and effectively once the market window opened. Notably, the financial services sector drove the fundraising as 43 per cent of total H1 capital came from it.
A Concentrated Second Quarter Surge
The half-year fundraising records were largely established within a highly concentrated timeframe rather than a slow, steady build. A staggering 94 per cent of the total IPO money for the half year was raised between July and September, amounting to Rs 79,700 crore. September emerged as the strongest month on record, generating Rs 40,400 crore as a rebuilt pipeline pushed issuances sharply toward the close of the quarter.
Beyond the strong listing gains, several other structural shifts defined the primary market during this period as companies heavily prioritised primary capital formation and fresh issues comprised 67 per cent of total proceeds.
As much as 44 per cent of these fresh issue funds were earmarked specifically for debt repayment, far exceeding the 18.5 per cent allocated for capital expenditure and expansion. The findings of the report also show that the market is witnessing a steady rise in confidential filings, as more companies choose to keep their financial details private until they are entirely ready to go public.
