India’s biggest IPO this year rakes in bids worth $31 billion, powered by institutional frenzy

India’s biggest public market offering this year, SBI Fund Management, has garnered bids worth 2.97 trillion rupees ($30.7 billion), underscoring the liquidity available in the market ahead of the much larger issues anticipated in 2026.

SBI Fund Management, which is a joint venture between State Bank of India and Europe’s Amundi Group, was in the market to raise 97.9 billion rupees ($1 billion). Its initial public offering was oversubscribed 41.6 times, owing to an enthusiastic response from institutional investors.

The portion reserved for qualified institutional buyers was subscribed 140 times, with most of the bids coming from domestic institutional investors such as banks and insurance companies. Participation by retail investors was relatively muted, with subscriptions at 3.6 times the offer that closed on Thursday.

Institutional interest is good news for public issues of India’s largest stock bourse, the National Stock Exchange, and the country’s biggest wireless telecommunications company, Jio Platforms, expected to hit the market later this year.

Both companies are estimated to raise more than $3 billion each, according to Mumbai-based IPO intelligence firm Prime Database.

India has been the most prolific IPO market in the world over the last two years, with the highest number listings, but activity was subdued here during the first half of the year.

Rising energy prices due to the Iran war have squeezed the Indian economy, taking the sheen off its domestic consumption story. That has coincided with a global investment rally in AI stocks, an industry where India has no champions.

As a result, since the start of the year, the Indian benchmark Sensex has lost over 9.4% and has been among the worst-performing large stock markets. The broader Nifty 50 is down 7.9% so far this year. In June, after a ceasefire between Iran and the U.S., the Indian market recovered partially, and companies started announcing fundraising plans.

Stock market offerings worth $50 billion could flood the Indian markets this year, though the continuation of the Iran war remains a key risk.

Investors will be keeping a close watch on the listing of SBI Fund Management next week, as strong post IPO gains would increase appetite for new issues. SBI Funds is India’s largest asset management company and, as of March 2026, it had 29.5 trillion rupees ($395 billion) under management.