Business · Markets · 3 hrs ago
Foreign investors’ share of Indian IPO anchor funding falls to five-year low
Foreign portfolio investors are taking a smaller share of Indian IPO anchor funding in 2026.
They accounted for 36.16% of anchor investments so far this year, down from 62.75% in 2021.
An anchor book is money committed by institutional investors the day before an IPO opens, and it can signal demand to other investors.
Foreign funds have also provided 11.61% of IPO fundraising so far this year, another five-year low.
Domestic institutions, including mutual funds and insurers, are taking a larger role as foreign investors become more selective.
Rich valuations, weaker markets and global interest in AI are among the factors weighing on overseas participation.
Foreign funds are still investing in some primary-market offerings, especially larger deals, but the figures show they are choosing more carefully.
Foreign portfolio investors accounted for 36.16% of Indian IPO anchor investments so far in 2026, the lowest share in five years.
Their share of total IPO fundraising was 11.61%, also a five-year low.
Rich valuations, weak markets and global investor interest in artificial intelligence are weighing on foreign participation.
Domestic institutions, including mutual funds and insurance companies, are taking a larger role in IPO anchor books.
- Who
- Foreign portfolio investors and domestic institutional investors.
- What
- Foreign investors’ share of Indian IPO anchor investments has fallen to a five-year low, while domestic institutions are taking a larger role.
- When
- So far in 2026.
- Where
- India.
- Why
- Rich valuations, weak market performance and global interest in AI and technology-related opportunities have contributed to lower foreign participation.
This story does not have two clearly opposing sides.
Foreign portfolio investors accounted for 62.75% of IPO anchor investments.
The FPI share of IPO anchor investments reached the previous low of 37.85%.
The FPI share of anchor investments fell to 36.16%, according to PRIME Database.
- FPI share of anchor investments
- 36.16% in 2026 so far
- FPI share of total IPO fundraising
- 11.61% in 2026 so far
- IPO issues
- 104 issues raised a combined ₹1.55 trillion in 2026 so far
- Total anchor investments
- ₹49,771 crore in 2026 so far
- FPI anchor investments
- ₹17,998 crore in 2026 so far
What people are saying
FPIs have continued to participate in larger transactions while being relatively selective about smaller deals
Also, global investors' interest is currently tilted towards AI and technology-related opportunities. India has had relatively fewer such offerings which has also contributed to lower FPI participation.