| A barrage of shares is heading toward investors in India, signaling a pickup in dealmaking at the end of a subdued first half of 2026. About a dozen companies are expected to collectively raise more than 600 billion rupees ($6.3 billion) across initial public offerings, institutional placements and government stake sales in two months, creating one of the busiest periods for equity offerings this year. In another sign of the increase in activity, rapid-commerce company Zepto Ltd. has filed updated paperwork for an IPO that could raise $1 billion. National Stock Exchange of India Ltd. may be close behind with a $2.5 billion filing. ALSO READ: SpaceX IPO To Push Musk Past $1 Trillion: How His Net Worth Compares To The Next 4 Billionaires The sudden spike in deals is bringing a sense of optimism to a market that's been comparatively sleepy since the start of 2026 as the underperformance of Indian stocks has made prospective issuers more tentative. IPOs have raised about $3.5 billion this year, well behind the pace of the previous two record-setting years, when proceeds topped $20 billion each. "This sustained pace of issuance indicates healthy underlying liquidity and participation across domestic institutions, foreign investors and retail segments," said Samarth Jagnani, head of global capital markets for India and Southeast Asia at Morgan Stanley. The supply of shares could increase further as lock-up periods expire for more than 50 listed companies over the next two months, potentially freeing up shares worth more than 800 billion rupees ($8.4 billion) for sale by founders and early investors, according to data compiled by Nuvama Wealth Management Ltd. Not all of those shares are expected to come to market, but the expiries add to concerns about a growing supply overhang. Despite the crowded issuance, bankers remain confident that demand will hold up, supported by strong participation from domestic institutions and retail investors. "We do not see the current pipeline materially stretching liquidity, particularly if issuance is from fundamentally strong companies," Jagnani said. Among the largest planned transactions, SBI Funds Management Ltd. is expected to seek about 130 billion rupees, while the federal government is preparing to sell a 2% stake in Life Insurance Corp. of India in a transaction that could raise roughly 100 billion rupees. Waaree Energies Ltd. and JSW Infrastructure Ltd. are each considering new share sales of around 70 billion rupees and 75 billion rupees, respectively.  India continues to have one of the world's most active primary markets. About 163 companies have received approval from the Securities and Exchange Board of India to launch IPOs, according to data from Prime Database. Another 62 companies have filed draft prospectuses and are awaiting regulatory clearance. The success of the upcoming transactions will be closely watched as a measure of whether investor demand can continue to absorb a growing supply of shares without weighing on broader market valuations. ALSO READ: IPO-Bound Zepto Grants Stock Options To Senior Employees In FY26: A Deep Dive Into Its ESOP Scheme Some investors, however, caution that the market's capacity to absorb new supply may be tested if multiple large offerings are launched simultaneously. "The risk of liquidity stretch is not insignificant, particularly if multiple large deals hit the market at the same time," said Sachin Relekar, senior equity fund manager at Axis Mutual Fund. "In such a scenario, we could see pressure on secondary-market liquidity, especially in mid- and small-cap stocks." |
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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