According to the latest Annual Report released by the Securities and Exchange Board of India (SEBI), the country’s primary capital markets demonstrated remarkable resilience, retaining the top position globally in the total number of Initial Public Offerings (IPOs). Despite prolonged global macroeconomic headwinds, heightened geopolitical conflicts, and persistent volatility across international equity markets, domestic primary markets witnessed robust activity driven by strong retail and institutional investor participation. The regulator’s report noted that India also ranked third globally in total funds raised through equity issuances, underscoring deep liquidity, strong domestic savings inflows, and high corporate appetite for public listing. A key driver behind this sustained listing momentum has been the rapid diversification of issuers, with small and medium enterprises (SMEs), technology startups, green energy developers, and traditional industrial firms successfully raising capital directly from public markets. The SEBI report highlighted a major structural shift in market ownership, with Domestic Institutional Investors (DIIs), such as mutual funds and insurance companies, reaching a record high holding of 17 per cent in listed equities, effectively anchoring market stability even as Foreign Portfolio Investor (FPI) equity ownership hit a 15-year low. Additionally, the market regulator introduced new operational mechanisms, including a Closing Auction Session (CAS), designed to improve price discovery, reduce end-of-day price manipulation, and align Indian equity market practices with global standards. While equity fundraising hit record highs, corporate bond mobilization saw a minor temporary decline of 8.4 per cent to ₹9.1 lakh crore, marking its first dip in four years, even as municipal bond issues surged significantly to finance urban infrastructure development. Market analysts emphasize that the sustained appetite for IPOs reflects growing investor confidence in domestic corporate earnings and long-term economic growth fundamentals. Capital market experts anticipate that the robust IPO pipeline will continue to attract both domestic retail investors and strategic long-term institutional capital, further deepening India’s equity market ecosystem.
SEBI Report Highlights India Retaining Top Position Globally in IPO Count
