For the first three months of FY27, India’s primary market was almost silent. Then the window opened, and companies rushed through it.

India’s mainboard IPO market raised a record Rs 844 billion (roughly Rs 84,400 crore) in the first half of 2026–27, according to a Grant Thornton Bharat report released on Monday. The striking detail is the timing: 94 per cent of that capital was raised between July and September. That implies the April–June quarter brought in only about Rs 50 billion.

The number of listings also rose. As many as 71 mainboard companies went public in April–September 2026, up from 55 in the same period last year. Total fundraising grew 30 per cent from Rs 649 billion in H1 FY26.

September: the month the market broke its own record

September drove the rally. Thirty-two IPOs raised Rs 404 billion that month, more than half of Q2’s total and the highest amount ever recorded in a single month. Financial services companies accounted for 43 per cent of the capital raised during the half, while capital goods led by number of issues, with 15 IPOs.

What makes September stand out is the backdrop. The Nifty 50 fell 5.7 per cent during the month. Usually, a falling secondary market sends issuers back to their bankers to delay launches. This time, the pipeline kept moving.

Why it matters: domestic investors are now holding up the market

The report’s main explanation for this resilience is domestic institutional investors. DIIs recorded net equity inflows of Rs 1,694 billion in Q2 FY27, more than twelve times the Rs 139 billion from foreign portfolio investors.

That gap marks a structural shift. India’s IPO cycles used to rise and fall with foreign flows. Steady domestic money, largely from mutual fund SIPs, insurance and pension funds, now gives the market a cushion that does not depend on global risk appetite. According to the report, it was this support that allowed the market to absorb a sharp jump in new issuance even as benchmark indices fell.

Investors were also rewarded. Average listing-day gains rose to 18 per cent from 10 per cent a year earlier, and average retail oversubscription increased to 28 times from 25 times.

Selective, not euphoric

Grant Thornton Bharat warned against reading the record as a free-for-all.

“India’s IPO market moved from caution to acceleration in Q2 FY27, helping deliver a record first half. While the scale of fundraising shows the market can absorb new issuance, investor demand stayed selective and increasingly focused on fundamentals, pricing, governance and the use of proceeds,” said Karan Marwah, Partner & Capital Markets Advisory Leader, Grant Thornton Bharat.

Marwah added that successful IPO execution is not only about choosing the right window but about being fully prepared when it opens. Companies with their documents, approvals and investor story ready in July were the ones that captured the September rush.

What comes next

The pipeline is large. During H1 FY27, 100 mainboard companies and 159 SME companies filed draft offer documents. The report notes, however, that a big pipeline does not automatically turn into listings, especially where regulatory approvals lapse or companies are not ready for the market.

For the second half, the question is not whether supply exists but whether demand can stay this selective and this strong. If domestic inflows keep their pace, FY27 could set a full-year record. If they slow, the market will find out how much of this surge depended on that domestic support.