Domestic funds pressure IPO valuations lower in India
In short
The median IPO valuation for issues raising at least Rs 1,000 crore fell to 7.4 times in 2026 from 10.2 times last year. Local funds are pushing issuers to accept lower prices.
This matters because it can change how much money companies raise in the market. The report does not name the IPOs affected or say whether demand will improve.
What the reporting says
The median price-to-book ratio for IPOs raising at least Rs 1,000 crore fell to 7.4 times in 2026 from 10.2 times last year, according to publisher summaries. Local funds are pushing for lower valuations as market strain builds. The reporting gives no list of companies or deals affected. It is unclear whether the lower pricing will improve subscriptions or reduce proceeds.
Why it matters
Lower IPO valuation multiples suggest investors are demanding cheaper pricing, likely affecting companies planning large listings and the funds backing them. The move from 10.2 times to 7.4 times in the reported median price-to-book ratio points to a more cautious primary market. The source does not identify specific IPOs, sectors or whether this trend will continue.