India IPO valuations slide as domestic funds push median price-to-book to 7.4x in 2026
AI Market Summary
India's domestic institutions are using rising IPO allocation share to push down offer valuations and force deal resizing, signaling tighter risk appetite amid equity-market pressure and foreign outflows. Median price-to-book for large IPOs has fallen materially, and fewer loss-making issuers are reaching market, implying higher selectivity and potentially reduced issuance momentum. This dynamic can weigh on near-term sentiment for India equities and the primary market pipeline.
Impact level
● Medium
Affected assets
NCSINIFTY52USD/USDT-0.62%
AI Insight · NCSINIFTY52USD/USDTAI Insight
● Neutral
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India’s domestic funds are using growing bargaining power to press for lower IPO valuations, with the median price-to-book ratio for offerings raising at least 10 billion rupees falling to 7.4 times in 2026 from 10.2 times a year earlier. Loss-making issuers have also become rarer in that group, and domestic institutions’ share of IPO proceeds has risen to 33% from 24% in 2021. The shift has forced marquee listings, including National Stock Exchange of India’s planned IPO, to cut deal size by about 15%, according to market data.
