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.
What happened
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
Key facts
- 40% YoY decline in FPI IPO anchoring
- FPI QIB share 25% in 2026 vs 42% in 2025
- ₹1.1 trillion block trades YTD
- PhonePe $1.3bn IPO deferred
Why this matters
Late-stage retail and fintech targets are facing a 20-30% valuation reset as FPI demand migrates to blocks, opening a window for strategic stake acquisitions and pre-IPO secondaries at domestic MF-disciplined multiples.