India’s initial public offering (IPO) valuations are declining as domestic investors press companies to accept lower prices, even in large listings. Multiple outlets report that local funds are increasingly influential in IPO pricing decisions as market conditions remain challenging.
One report says Indian domestic funds “flex pricing muscle,” negotiating harder on valuation expectations for major deals while the broader stock market faces headwinds. Another cites data from fintech platform Chittorgarh, showing a clear drop in valuation metrics for larger IPOs, with the median price-to-book ratio for IPOs raising at least ₹1,000 crore falling to 7.4 times in 2026 from 10.2 times in the prior year.
While both sources point to the same overall trend—lower valuation benchmarks for substantial IPOs—the first emphasizes the role of domestic funds in reshaping pricing outcomes, whereas the second focuses more on the measurable change in price-to-book ratios over time.
