FPIs Pump $4.9 Billion Into Indian IPOs Amid $28.9 Billion Secondary Market Exodus
· Business · Economic Times, LiveMint
Foreign portfolio investors (FPIs) have invested $4.9 billion (₹45,848 crore) into Indian IPOs in the first eight months of 2026, up from $4.7 billion in the same period of 2025. This preference for primary offerings sharply contrasts with a $28.9 billion (₹2.7 lakh crore) net outflow from the secondary market — far steeper than the $19.6 billion withdrawn by August-end 2025. Primary market momentum accelerated after July, with FPIs pumping in $1.4 billion in July and $1.3 billion in August. The domestic IPO market also picked up, raising ₹51,101 crore from 35 offerings in July–August, led by SBI Funds Management (₹9,796 crore) and Manipal Health Enterprises (₹9,275 crore), which together accounted for 69% of the ₹73,673 crore raised from 62 IPOs so far in 2026. Secondary market activity is showing signs of recovery as FPIs rotate capital from Asian markets like South Korea and Taiwan, where semiconductor stocks have weakened amid uncertainty over AI-related capital expenditure sustain
Why it matters
Indian retail investors and domestic IPO issuers are the primary beneficiaries, with foreign capital flowing into new listings even as foreign investors dump listed stocks. The $4.9 billion IPO inflow signals continued confidence in India's primary market pipeline despite the sharp secondary-market selloff, while the secondary market rotation from South Korea and Taiwan could ease pressure on Indian equities if it persists.
Read the original report — Economic Times
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