H1FY27 IPO Pipeline Gains Momentum Ahead of Crowded Second Half

Surge in IPO Activity Signals a Busy Second Half for Indian Markets

The Indian primary market is gearing up for a bustling second half of FY27, with a significant increase in the number of companies planning to go public.

Strong Pipeline of Upcoming IPOs

As of September 25, data from Primedatabase reveals that approximately 145 companies have received valid approvals from the Securities and Exchange Board of India (SEBI). The total estimated issue size stands at around ₹2.75 lakh crore, which includes ₹91,500 crore from 61 companies whose specific issue sizes are yet to be disclosed. This surge in potential IPOs is expected to keep the primary market active in the latter half of the fiscal year.

Notable upcoming offerings include Jio Platforms, expected to raise ₹35,000 crore, followed by Avaada Electro at ₹7,600 crore, and Oravel Stays (OYO) at ₹6,650 crore. Other significant players include Zepto and Credila Financial Services, each targeting ₹5,000 crore. Analysts predict that around ₹1-1.2 lakh crore, or 35-45% of the approved pipeline, is likely to materialize in the market.

Recovery from a Slow Start

The first half of FY27 saw a relatively subdued IPO activity, with companies raising ₹46,453 crore between April 1 and August 26, marking a decline from ₹55,338 crore during the same period in FY26. The number of IPOs also fell from 38 to 30. However, the market witnessed a resurgence in July and August, with companies raising ₹18,349 crore and ₹26,302 crore, respectively. September alone saw 31 companies launch their IPOs, collectively raising ₹39,214 crore, indicating a strong recovery.

Implications for Investors and Market Dynamics

The upcoming IPOs, particularly large offerings like Jio Platforms, are expected to attract significant institutional interest. Santosh Meena, head of research at Swastika Investmart, emphasizes that while large IPOs will dominate headlines, smaller, well-priced issues can still find success. The market has shown resilience in supporting both large and mid-sized deals, provided they are priced attractively.

However, the influx of mega IPOs may temporarily absorb substantial investor capital, potentially impacting liquidity in mid and small-cap stocks. Additionally, if proceeds from these IPOs are utilized for purposes such as repaying foreign currency debt, it could lead to reduced reinvestment in the domestic equity market, creating a ripple effect in H2 FY27.

Diverse Offerings on the Horizon

The approved IPO pipeline is not only dominated by financial services but also spans healthcare, power, infrastructure, technology, consumer businesses, and manufacturing. This diversity suggests that H2FY27 could witness a mix of marquee listings alongside a broader array of mid-sized offerings, potentially enriching the investment landscape.

Key Highlights

• 145 companies have valid SEBI approvals, with an estimated issue size of ₹2.75 lakh crore.
• Jio Platforms leads the pipeline with a proposed ₹35,000 crore offering.
• Total IPO fundraising in H1FY27 was ₹46,453 crore, down from ₹55,338 crore in H1FY26.
• September saw 31 IPOs raising ₹39,214 crore, indicating strong market recovery.
• The upcoming IPOs are expected to attract significant institutional interest, particularly in large offerings.

Investor Note: As the IPO landscape heats up, investors should closely monitor both large and mid-sized offerings, assessing their fundamentals and valuations to make informed decisions in the evolving market environment.