India's primary market has demonstrated remarkable strength in the current financial year, with capital mobilization maintaining a vigorous pace. A recent report from the National Stock Exchange (NSE) reveals that 83 companies have collectively raised a massive ₹1.3 lakh crore from the domestic stock market as of November in the financial year 2025-26 (FY26). This sustained momentum underscores the deepening and resilience of India's capital markets.
Breakdown of Fundraising: Fresh Equity vs. Offer for Sale
The NSE analysis provides a detailed look at the composition of this substantial capital raise. Of the total ₹1.3 lakh crore, 41% was garnered through fresh equity issuances, while the remaining 59% came via Offers for Sale (OFS). This split highlights two parallel trends: companies accessing new capital for expansion and early investors achieving partial exits.
Fresh equity involves a company creating and issuing new shares to the public. The entire proceeds from this route flow directly into the company's coffers, typically earmarked for business growth, new projects, or debt reduction. In contrast, an Offer for Sale involves existing shareholders, such as promoters or early-stage investors, selling their pre-held stakes to new investors in the market.
Market Impact and Investor Participation Trends
The scale of these listings is further emphasized by their aggregate market valuation. The report notes that these newly listed entities now command a combined market capitalisation exceeding ₹10 lakh crore, reflecting the significant size and depth of recent market entrants.
A notable shift in investor demographics has also been observed. Retail participation strengthened to 25% of the total, indicating a growing appetite among individual investors for primary market offerings. Concurrently, the share of qualified institutional buyers (QIBs) saw a moderation, pointing to a more diversified investor base supporting the issuances.
SME Segment Shows Vibrant Activity on NSE Emerge
Beyond the mainboard, the fundraising momentum extended robustly to the small and medium enterprise (SME) segment via the NSE Emerge platform. During the same period under review, 80 SMEs got listed on the Emerge platform, raising an aggregate of ₹3,911 crore.
Strikingly, 95% of the capital raised on Emerge came from fresh equity, underscoring the platform's critical role in providing essential growth capital to smaller enterprises and fueling their expansion plans.
Regulatory Tailwinds Strengthen Listing Ecosystem
The NSE report also credited supportive regulatory measures for enhancing India's listing environment. Key changes that have provided a fillip include:
- Reduction in the minimum public offering (MPO) requirement.
- Extension of timelines for achieving minimum public shareholding (MPS) for large entities.
- Streamlined migration criteria for SMEs wishing to move from the Emerge platform to the mainboard.
- Implementation of enhanced disclosure norms for greater transparency.
In conclusion, the NSE report paints a picture of a dynamic and healthy capital market. The robust fundraising figures, coupled with strong retail interest and a conducive regulatory framework, continue to reinforce the Indian stock market's pivotal role in channeling investments to fuel long-term economic growth and corporate expansion.
