- Six mainboard IPOs open for subscription on September 9 amid four ongoing issues
- This week, 16 firms aim to raise over Rs 7,000 crore from primary market offerings
- NSE and Jio Platforms IPOs expected to raise Rs 24,300 crore and Rs 37,700 crore respectively
The primary market is witnessing a surge in activity, with six mainboard public issues opening for subscription on September 9, alongside four IPOs that are already underway on Dalal Street. The pipeline is set to remain strong, with several large offerings expected in the coming months.
This week alone, 16 companies — 12 from the mainboard and four from the SME segment — are looking to raise more than Rs 7,000 crore from the primary market. Adding to the excitement are the much-anticipated initial public offerings (IPOs) of National Stock Exchange Ltd. and Jio Platforms, which are expected to hit the market soon. The NSE IPO is estimated to be worth around Rs 24,300 crore, while the Jio Platforms IPO is expected to raise nearly Rs 37,700 crore, potentially making it the largest IPO in India so far.
With investors allocating increasing amounts of capital to the primary market, concerns are emerging over whether the IPO boom could be diverting liquidity from the secondary market, which is already facing selling pressure.
While activity in the primary market remains red-hot, the secondary market has been under pressure. The benchmark indices, the Sensex and Nifty 50, are on course for their fifth consecutive weekly decline. The Nifty 50 has fallen more than 1,200 points from its early-August peak and has slipped below the crucial 23,500 level.
“The scale of the IPO pipeline is certainly significant, with around Rs 4.7 lakh crore of potential fundraising. The proposed Jio Platforms and NSE issues alone could account for around Rs 67,700 crore,” said Ajay Garg, Director & CEO, SMC Global Securities.
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Garg expects some rotation of capital from the secondary market towards the primary market, particularly around larger IPOs.
“This could keep liquidity somewhat tight and add to volatility in the secondary market, which is already undergoing consolidation,” Garg said.
Are Investors Moving Money From Stocks To IPOs?
Data from NSDL showed that Foreign Portfolio Investors (FPIs) have sold Indian equities worth Rs 13,918.41 crore in the secondary market in September so far, while investing Rs 1,306.03 crore in the primary market during the period.
For 2026 so far, FPI outflows from the secondary market stand at Rs 2,84,208.31 crore, while inflows into the primary market have totalled Rs 47,153.50 crore.
The divergence highlights the growing preference for primary-market opportunities even as foreign investors continue to remain net sellers in the secondary market.
The strong IPO activity could therefore have an impact on secondary-market liquidity and add to the pressure on the Sensex and Nifty 50 in the near term.
“Two strong headwinds are impacting the market now. One, Brent crude around $100 amidst escalating US-Iran tensions is weighing on the economy. Two, the booming IPO market is sucking liquidity out of the market resulting in sustained downtrend in the Nifty. Perhaps, the latter is impacting the market more than the former,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
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IPO Listing Gains Drive Investor Interest
The rising attraction towards IPOs is also being supported by strong listing gains. Average IPO listing gains have increased to around 22% since June, encouraging both retail and institutional investors to participate in the primary market.
This becomes particularly attractive at a time when the Nifty has fallen nearly 10% on a year-to-date (YTD) basis.
“Everyone is riding the momentum in the IPO market. This frenzy has pushed up the IPO valuations, too. IPOs are getting subscribed irrespective of valuations. Investors have to be discrete while applying for IPOs,” Vijayakumar added.
Is The IPO Boom A Liquidity Problem?
Despite the sharp increase in primary-market activity, Garg does not view the situation as a structural liquidity problem for Indian equities.
Domestic flows continue to provide support, with monthly systematic investment plan (SIP) contributions remaining above Rs 30,000 crore. Meanwhile, FPI inflows into the Indian stock market stood at Rs 29,631 crore in August, although foreign investors remain net sellers for the year.
“So, at this stage, it looks more like a reallocation of liquidity between the primary and secondary markets rather than money moving out of equities altogether,” Garg said.
According to Garg, much will depend on how the upcoming IPOs are priced and how investors assess the underlying businesses.
“Investors are likely to remain selective, and reasonably priced issues should attract capital without creating lasting pressure on the secondary market. Ultimately, the direction of the secondary market will depend more on earnings, valuations and overall domestic and foreign flows than on the IPO pipeline alone,” he said.
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