In FY26, Indian companies significantly increased their reliance on rights issues for capital, raising ₹47,280 crore, a sharp rise from ₹13,797 crore in FY25, marking the highest total since FY21. This surge is largely attributed to a ₹24,930 crore rights issue by Adani Enterprises, which alone accounted for over half of the total funds raised. The number of companies opting for this funding mechanism rose dramatically from 18 to 124, indicating a broader acceptance of rights issues amid a challenging market environment characterized by foreign portfolio investor (FPI) outflows and global uncertainties. The Securities and Exchange Board of India (SEBI) has facilitated this trend by streamlining the rights issue process, reducing the completion timeline to 23 working days. Analysts suggest that while rights issues are becoming a preferred option due to their reliability and promoter backing, Qualified Institutional Placements (QIPs) still raised about ₹62,954 crore in FY26, though their dominance is waning as the gap narrows. The shift towards rights issues reflects a cautious approach by companies in navigating the current volatile market landscape.