Domestic funds seek lower IPO valuations as pricing power shifts, says report
Business Today 1 hr ago·1 Oct 2026, 6:07 am
Domestic mutual funds and other domestic investors are now pressing for lower valuations in upcoming IPOs, according to a recent market report. The shift reflects a broader change in pricing power: issuers are finding it harder to command premium prices as macro‑economic headwinds, higher interest rates and slower growth temper investor appetite.
For retail investors, the trend signals that new listings may be priced more conservatively, potentially limiting short‑term upside but offering a better chance of stable post‑listing performance. Keep an eye on the pipeline of high‑profile IPOs, any further adjustments in fund allocation strategies, and how macro indicators such as GDP growth and rate expectations evolve, as these will shape valuation dynamics in the months ahead.
Excerpt from Business Today
Indian domestic funds are gaining influence over IPO pricing as market weakness and foreign selling push investors to demand lower valuations, Bloomberg reported. India's domestic funds are pushing harder on IPO pricing and using their growing influence to bring down valuations even for the biggest offerings, as…Read the original at Business Today
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- Category: Economy.
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