India’s primary market hasn’t just been generous to founders, private equity investors, and investment bankers SEBI, the capital markets regulator, has pocketed a tidy sum too. In 2025-26, prospectus filings and offer documents brought SEBI Rs 338.3 crore, up 27% from last year’s Rs 266.3 crore. Its total fee collection grew 10% to Rs 2,563 crore over the same stretch. Let’s unpack what this really means.
What’s Happening?
SEBI’s annual report shows revenue from ‘offer documents and prospectuses filed’ rose to Rs 338.3 crore in 2025-26 from Rs 266.3 crore in 2024-25. These are non-recurring charges, tied directly to capital-raising activity. That’s in contrast to the recurring fees SEBI collects each year from stock exchanges, brokers, and mutual funds.
Equity public issues (IPOs and FPOs) raised Rs 1.9 lakh crore in 2025-26 0.9% lower than the year before. But the number of new listings rose to 366 from 320, with 109 IPOs on the main board. Main board IPOs raised Rs 1.8 lakh crore, up 8.9% year on year, and the median issue size grew from Rs 740 crore to Rs 760 crore.
How Much Did SEBI’s Total Revenue Rise?
SEBI’s total fees and other charges (unaudited) increased to Rs 2,563 crore from Rs 2,334 crore last year. The biggest contributor was stock exchanges’ annual regulatory fees, which grew from Rs 1,265.9 crore to Rs 1,349.3 crore over half of the total mop-up.
Other non-recurring streams saw bumps as well. FPI fees went from Rs 73.3 crore to Rs 105 crore, mutual fund fees from Rs 33 crore to Rs 35.1 crore, stock exchange fees from Rs 41.1 crore to Rs 45.2 crore, and custodian fees from Rs 132 crore to Rs 149.2 crore. Even broker fees in the cash market climbed to Rs 61.6 crore from Rs 58.1 crore.
Why Is the IPO Boom Slowing in 2026?
However, while the primary market remained strong in 2025-26, the pace of IPO fundraising has weakened in 2026. So far in 2026, companies have raised around $5.78 billion through IPOs, compared with $7.32 billion during the same period in 2025. In 2024, Indian companies raised a record $22.36 billion through IPOs.
Due to weak market sentiment, higher volatility and growing investor caution, companies are reducing their issue sizes and some are accepting lower valuations. Manipal Health Enterprises reduced its IPO size from more than $1 billion to around $960 million. Indo-MIM raised around $396 million, while it had earlier targeted raising around $700 million, despite its IPO receiving more than 72 times subscription. Juniper Green Energy also reduced its proposed issue size from $314 million to $188 million.
Meanwhile, Zepto opted for a pre-IPO private placement instead of launching an immediate IPO. Sify Infinit Spaces put its IPO on hold, while PhonePe postponed its listing plans.
What Does This Mean for Investors?
Dharmesh Mehta, MD and CEO of DAM Capital Advisors, points out that many companies prefer raising less capital over accepting greater equity dilution at lower valuations. Smaller deal sizes mean 2026 may not produce a third straight record IPO year, but that also leaves investors in a better pricing position.
Pratik Loonker of Axis Capital says weak risk appetite, higher volatility in secondary markets, and mixed post-listing returns from recent IPOs have made investors far more selective. The takeaway for retail investors? You now have to weigh both the company’s business strength and whether the pricing makes sense, not every IPO is a guaranteed win.
What’s Next?
If Jio Platforms and NSE launch as expected in September-October, the primary market could get some breathing room in the remaining months of 2026. But until foreign investors turn more constructive, domestic institutions are likely to stay strict on pricing and companies may have to live with smaller deal sizes.
Even so, the IPO market will keep being a meaningful revenue source for SEBI. A strong pipeline of companies is still waiting for its time on the market, ensuring this stream continues to contribute substantially to the regulator’s income in the coming year.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The companies mentioned are cited as examples within the context of market developments. Investors are advised to conduct their own due diligence and consult their financial advisor before making any investment decisions.
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