The initial public offering (IPO) market in India raised a record ₹94,205 crore through 78 mainboard issues in the first half of FY27, with nearly 59% of the funds coming from offers for sale (OFS), where existing shareholders sold stakes rather than companies raising fresh capital, according to thehindubusinessline.com. Fresh issues accounted for only 41%, marking a shift from H1 FY26 when fresh capital made up 52% of the ₹69,533 crore raised.
This shift was largely driven by the National Stock Exchange’s ₹22,563-crore IPO, which was entirely an OFS and accounted for almost 24% of total IPO fundraising in H1 FY27. The NSE issue allowed existing shareholders to sell stakes without any proceeds going to the company. Excluding NSE, the IPO market raised about ₹71,642 crore, just 3% higher than the previous year, with OFS proceeds excluding NSE slightly below the previous year’s ₹33,356 crore, indicating the increase in OFS fundraising was concentrated in the NSE deal.
The dominance of OFS in the IPO market highlights a trend where shareholder exits are becoming more prominent than fresh capital raising. This contrasts with the previous fiscal year’s more balanced split between fresh capital and OFS. The NSE IPO stands out as the largest all-OFS issue, influencing the overall market mix. This trend may affect how companies approach IPOs and how investors view capital formation versus liquidity events in the Indian market.
The data from PRIME Database and the NSE IPO details provide a clear picture of this shift in IPO fundraising dynamics. The NSE’s ₹22,563-crore OFS issue alone accounted for nearly a quarter of the total IPO funds raised in H1 FY27, underscoring the scale of shareholder exits in the current market.