India’s primary market has had a robust start in 2026, with initial public offerings (IPOs) collecting $2.5 billion in the first quarter. This marks a 7.8% increase year-on-year and the best first-quarter performance since 2018, as per a report by the London Stock Exchange Group (LSEG). India maintained its position as a significant global IPO hub, representing about 8% of the total worldwide proceeds during the quarter.
The broader equity capital markets (ECM) displayed resilience despite global uncertainties impacting dealmaking sentiment. Follow-on offerings played a significant role, contributing 58% of the total proceeds, according to the report. Financial companies took the lead in fundraising activities by contributing $1.2 billion, capturing more than one-fifth of the market.
Financial institutions continued to dominate bond fundraising, constituting over 70% of the total issuance, the report highlighted. Elaine Tan, Senior Manager at LSEG Deals Intelligence, noted a cautious start to dealmaking in India this year. There has been a noticeable slowdown in both M&A volumes and large transactions, with a focus on scale, AI adoption, domestic consolidation, and portfolio divestitures amidst uncertainty and caution.
