Tezzbuzz Desk- Domestic capital market has become a major source of fund raising for Indian companies these days. During July and August 2026, India Inc has raised more than Rs 1.11 lakh crore through mainboard IPO, Qualified Institutional Placement i.e. QIP and Offer for Sale i.e. OFS. This figure is among the strongest two months of fund-raising activities since October-November 2024. During that period, companies had raised about Rs 1.14 lakh crore through these means.
The IPO market has seen particular momentum. So far in August, 20 companies have raised more than Rs 20,850 crore through IPO. This amount is in addition to about Rs 28,650 crore raised by 12 companies in July. The share of IPO in total fund raising has been more than 40 percent. This indicates that both companies and investors continue to have confidence in the primary market.
Listed companies have also increased fund raising activities through QIP. So far in August, four companies have raised about Rs 3,250 crore through QIP. Whereas in July, eight companies had raised about Rs 25,114 crore through this medium. QIP is generally used by listed companies to raise capital from institutional investors. Companies can use this fund for expansion, debt reduction, acquisition and other business needs. A large amount has also been raised through OFS in August. Life Insurance Corporation of India (LIC), one of the country's largest institutional investors, has raised about Rs 31,447 crore in August. In OFS, existing investors or promoters sell a part of their stake. This can increase the public float in the company and also increases the availability of shares in the market.
Cochin Shipyard also raised about Rs 1,705 crore in July. According to experts, it is not necessary for the primary market that Sensex or Nifty remain in a continuous rise. Adequate liquidity in the market, controlled fluctuations and investor confidence in the business of companies are more important. In fact, after the conflict in West Asia, there was huge volatility in the market, due to which many companies and existing shareholders had postponed their fund raising transactions. Now, after relative stability in the market, companies are taking advantage of better opportunities. Many companies are turning to the equity market to raise growth capital, reduce debt, fund acquisitions and meet regulatory requirements.
However, challenges also exist before the market. In July, Sensex and Nifty rose by about 2.1 percent and 2.2 percent, while so far in August, both have declined by 0.5 percent and 0.7 percent respectively. Despite this, midcap and smallcap stocks remain strong. Strong participation of domestic investors is also supporting the market. Investments worth about Rs 31,961 crore came through SIPs in July, while active equity funds received about Rs 24,700 crore. This strong domestic investment position is helping to mitigate the impact of volatile activities by foreign investors. This is the reason why despite global challenges, Indian companies are succeeding in raising money from the capital market on a large scale.