Summary of this article
India secured 47 percent of the global IPO market.
Rising global bond yields stalled Western equity market issuances.
Robust domestic liquidity and macroeconomic stability drove Indian growth.
The month of August was a tumultuous one for capital markets across the globe due to rising interest rates and mounting geopolitical tensions. However, amid this volatility, India witnessed high volume equity fundraising in the primary market within the initial public offering (IPO) segment.
According to the Securities and Exchange Board of India (Sebi) monthly bulletin, Indian exchanges accounted for as much as 47 per cent of all capital mobilised through IPOs worldwide. The data showed that nearly as much as $6.60 billion to $6.77 billion was raised through IPOs globally in August. Out of this, $3.1 billion was raised in the Indian market.
In August, as many as 40 companies raised money via the Indian primary market. Other markets, such as the United States, recorded a fundraise of $2.1 billion across nine issues to capture 31 per cent of the market.
This was followed by China and Turkey, which held nine per cent and five per cent, respectively, out of the total money raised via IPOs globally. Notably, August also became the busiest month for IPOs since late 2025. Mainboard listings generated Rs 28,976 crore across 18 issues, while the SME platform mobilised Rs 1,219 crore through 22 offerings.
Global Debt Shocks Paralyse Global Bourses
One of the key reasons behind the surge in the primary market in India was a contraction in dealmaking across Western economies. In August, global equity issuance declined as advanced economies witnessed an aggressive sovereign bond sell-off across G7 countries.
Notably, the G7 countries, which include Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, saw government bond yields climb to their highest levels since 2008. In the US, the 30-year Treasury yield surged to a 19-year high of 5.33 per cent on August 18.
Additionally, the breakdown of the US-Iran ceasefire pushed crude oil past $91 per barrel, adding to inflation concerns and feeding expectations of further Federal Reserve tightening.
This is likely to have led to a moderation in the risk appetite of international investors, allowing domestic issuances to surpass international volumes in the IPO space.
Productive Growth Capital
Despite the high number of issuances, the August primary market resurgence was backed by capital formation. Fresh capital issues made up 71 per cent of total proceeds raised across mainboard public offerings. On the other hand, in the SME segment, fresh capital accounted for 91 per cent of all funds mobilised. The orientation toward balance-sheet expansion is likely to have provided investors with a reason to commit capital amid broader market consolidation.
Macro Resiliency and Domestic Liquidity Moats
According to the Sebi bulletin, domestic issuers are expected to have benefited from domestic macroeconomic stability, which shielded India from external turbulence. Real gross domestic product expanded by 7.8 per cent year-on-year in the first quarter of fiscal year 2027. Foreign exchange reserves reached an all-time record of $740.8 billion in late August, providing a comfortable buffer against currency volatility.
These macroeconomic factors are also expected to have led to heightened institutional demand for fresh Indian equity. Notably, the Sebi bulletin showed that Qualified Institutional Buyers led the mainboard subscription with a 40 per cent share. Domestic retail inflows provided a solid floor, with monthly systematic investment plan contributions reaching a record Rs 32,297 crore across 100 million contributing accounts.
For the broader market, the surge in the IPO market highlights the structural independence of Indian capital formation. Even as the Nifty 50 and Sensex declined by 1.2 per cent and 1.5 per cent due to crude oil pressures, the equity cash market turnover expanded 26.8 per cent year-on-year.
However, the Sebi data issues clearly warn individual investors. While mainboard listings showed that robust institutional oversubscription generally translated into positive listing gains, the SME segment proved far less predictable.
Undersubscribed SME issues routinely listed at losses of up to 20 per cent, while heavily oversubscribed small-cap offerings often saw returns deteriorate post-listing. Thus, investors must avoid chasing speculative grey-market premiums and focus on the company’s fundamentals and other key details of the public issue.
