Whalesbook
Securities and Exchange Board of India data reveals a subdued February for Initial Public Offerings (IPOs). A total of 17 companies raised ₹4,650 crore, marking the second-lowest resource mobilization for FY26. This performance reflects cautious investor sentiment and subdued mainboard activity, influenced by secondary market volatility including US tariffs, muted earnings growth, and a weakening rupee. The trend aligns with global markets, which also saw a moderation in public issues during February, though India ranked third globally in issuances. Listing day performance for the month was moderate, with 10 companies debuting at or above their issue price.
Market Headwinds
This slowdown aligns with global market trends, where public issues also moderated during February. Factors like secondary market volatility, including US tariffs, muted earnings growth, and a weakening rupee, contributed significantly to the cautious sentiment. Despite these pressures, India maintained a strong position globally, ranking third in IPO issuances during the month. Listing day performance for the month was moderate, with 10 companies debuting at or above their issue price.
Foreign Investor Shift
Amidst the primary market lull, foreign portfolio investors (FPIs) turned net buyers after three months, recording their highest inflows in 17 months at ₹22,615 crore. The SEBI bulletin attributes this significant reversal primarily to the India-US interim trade deal, which substantially reduced export tariffs. Robust Q3 corporate earnings and a growth-oriented Union Budget also played a crucial role in boosting investor confidence and attracting foreign capital back into Indian equities.