Overview: Foreign portfolio investors (FPIs) invested ₹44,960 crore (around $4.75 billion) in India’s primary market during the first half of FY 2026-27, a reported increase of 35% in dollar terms over the same period last year. This contrasted with their sale of ₹1.64 lakh crore worth of listed equities. The divergence highlights continued foreign participation in new share offerings despite selling pressure in the secondary market. However, it does not guarantee demand for every new issue or ensure that companies will raise their targeted capital.
Foreign portfolio investors (FPIs) invested $4.75 billion in India’s primary market during the first half of the Financial Year 2026-27, a 35% increase from a year earlier. This came even as they sold ₹1.64 lakh crore worth of listed equities over the same period.
The contrasting flows come as Indian companies tap public markets to raise equity. However, stronger FPI participation in new offerings does not guarantee demand for every issue or ensure that companies will secure their targeted funding.
What Do the FPI Investment Figures Show?
Data for April to September 2026 highlights the difference between foreign investment in new offerings and trading in existing listed shares.
- Primary market: FPIs invested ₹44,960 crore, equivalent to around $4.75 billion. The investment was reported to be 35% higher in dollar terms than in H1 FY26.
- Secondary market: FPIs sold listed equities worth ₹1.64 lakh crore during the same period.
- Overall fundraising: Indian companies and shareholders raised a record ₹2.43 lakh crore through public equity markets, up 75% year-on-year.
The overall fundraising figure includes IPOs, offers for sale (OFS), qualified institutional placements (QIPs) and other public-equity transactions. It should not be treated as fresh capital received entirely by companies.
Why Does This Trend Matter for Businesses?
Primary-market investment and secondary-market trading serve different purposes. When a company issues new shares, it receives the proceeds from the fresh issue. The money may be used for expansion, debt repayment or other stated objectives.
In secondary-market trading, the money generally passes between investors. An OFS also allows existing shareholders to sell their holdings, with the proceeds going to those shareholders rather than the company.
The continued flow of foreign investment into new offerings suggests that investors may still be willing to consider selected opportunities despite selling in listed equities. However, the aggregate figures do not establish why investors chose particular issues or whether future offerings will attract similar demand.
For companies planning to raise equity, three areas deserve attention:
- Valuation and pricing: The proposed issue price should be supported by financial performance, realistic growth assumptions and appropriate comparisons with similar businesses.
- Financial records and governance: Companies should maintain reliable financial statements, clear shareholding records, sound corporate governance and complete statutory disclosures.
- Fundraising structure: The company should assess whether an IPO, QIP or another permitted route suits its funding requirements and regulatory position.
An IPO or institutional placement does not guarantee full subscription, successful fundraising or favourable listing performance. Market conditions and company-specific factors continue to influence investor demand.
Setindiabiz Support
Setindiabiz supports businesses with corporate structuring, share-capital documentation and regulatory compliance. Companies planning an equity fundraising exercise should prepare their corporate records and review the applicable requirements before approaching investors. For an IPO or QIP, businesses should also engage a SEBI-registered merchant banker and appropriate legal and financial professionals to assess eligibility, structure the issue and meet the relevant regulatory requirements.
Frequently Asked Questions
Investors may continue to consider selected new offerings while reducing their exposure to existing listed equities. The reasons can differ across investors and individual issues.
No. An IPO may include a fresh issue and an OFS. Proceeds from a fresh issue go to the company, while OFS proceeds go to the selling shareholders.
No. Investor demand depends on the company’s fundamentals, valuation, issue terms and prevailing market conditions. Aggregate investment trends do not guarantee the outcome of an individual issue.
A company should review its financial statements, shareholding records, corporate governance, valuation and regulatory position. It should also select a fundraising route that suits its funding needs and eligibility.
