FPIs ditch Indian retail IPOs for blocks; Zepto, PhonePe face pricing reset
Foreign investors are skipping primary issues at stretched valuations and routing ₹1.1 trillion into block trades YTD. FPI share of QIB allocations is set to drop to 25% in 2026 from 42% in 2025, forcing Zepto, Jio Platforms, PhonePe ($1.3bn IPO deferred) and boAt to accept domestic MF-led pricing discipline.
FPIs are cooling on Indian IPOs amid high valuations and AI-driven global tech pull, pivoting to blocks/QIPs. Zepto, Jio Platforms, PhonePe and boAt face pricing discipline from domestic MFs, with several retail-linked IPOs deferred or repriced.
Why this matters
Reinforces the H2 2026 IPO queue narrative where Zepto, Jio, PhonePe and Flipkart await revival, but now with domestic MFs—not FPIs—setting the price anchor after SBI Funds and Manipal Health led recent deals.
Retail-company signals steady at 1,500 over 90 days, with IPO pricing discipline now the dominant sub-thread.