Indian companies mobilise Rs 40,355 crore through mainboard IPOs in September: SEBI

The bulletin highlighted that September witnessed a sharp surge in primary market fundraising, with companies raising a total of Rs 1,68,372 crore across equity, debt and trust structures.

This represented an increase of 22 per cent over the preceding month, driven by record IPO activity and a significant rise in corporate debt private placements.

"Mainboard IPO fundraising was largely driven by Offer for Sale (OFS) component, which accounted for 75 per cent of the total," the bulletin noted.

The remaining 25 per cent was raised through fresh capital formation, with 94 per cent of the total fresh capital raised by mainboard IPOs.

Apart from mainboard listings, 38 small and medium enterprise (SME) IPOs mobilised Rs 1,684 crore during September, contributing to the overall fundraising momentum.

Together, the mainboard and SME segments recorded 70 IPO listings.

The bulletin further noted that mainboard IPOs recorded strong listing-day performance, with average returns reaching as high as 76 per cent in certain cases.

Investor participation also remained strong, although the pattern differed between mainboard and SME IPOs.

In mainboard IPOs, institutional investors dominated subscription activity, with Qualified Institutional Buyers (QIBs), excluding other institutional investors, contributing 37 per cent, followed by non-institutional investors (NIIs) at 28 per cent and retail investors at 17 per cent.

In contrast, SME IPOs witnessed greater retail participation, with retail investors accounting for 48 per cent of subscriptions, while NIIs contributed 32 per cent.

The report also highlighted differences in listing-day performance between the two segments.

While mainboard IPOs showed a positive relationship between oversubscription and listing-day gains, SME IPOs experienced higher volatility and less predictable returns.

The bulletin noted that several SME IPOs witnessed sharp price corrections on listing day despite substantial oversubscription, highlighting the risks associated with smaller public offerings.

Sector-wise, mainboard IPO fundraising during FY27 up to September remained concentrated in a few key sectors, including capital markets, healthcare services and industrial manufacturing.

Capital markets accounted for 36 per cent of the fundraising, followed by healthcare services at 10 per cent and industrial manufacturing at 9 per cent.

Meanwhile, the report noted that global IPO activity also witnessed a significant increase in September, with India emerging as one of the leading markets for new listings.

India accounted for around USD 4.4 billion in global IPO proceeds during the month, with the National Stock Exchange (NSE) hosting the world's second-largest IPO by proceeds, according to the bulletin.

The strong domestic fundraising activity came despite a sharp correction in Indian equity markets during September, with the Nifty 50 and BSE Sensex declining by 6.1 per cent and 5.8 per cent, respectively. (ANI)