New Delhi, Nov. 3 -- Foreign investors are growing cautious about India's initial public offerings (IPOs), with their share of anchor investments sliding to a five-year low amid concerns over rich valuations, weak market performance and a global shift in interest towards artificial intelligence (AI). As overseas investors get pickier, domestic institutions are taking on a bigger role, gradually shifting the balance of India's primary market.

Foreign portfolio investors' (FPI) investments as part of the total anchor book for initial public offerings (IPOs) slumped to its lowest in five years to 36.16% so far this year from its peak of 62.75% in 2021, according to data from PRIME Database. The previous low, as per the data, was 37.85 % in ...