India's IPO Market Poised for Record Growth in 2026

India's IPO Landscape Strengthens

New Delhi, Dec 29: A recent report indicates that India's initial public offering (IPO) market is entering a robust phase, positioning itself as a global frontrunner in deal volume. It is expected to facilitate capital formation of approximately Rs 4 lakh crore in 2026.

The analysis by Pantomath Capital highlights a significant transformation in India's equity capital markets over the past five years, evolving from a primarily cyclical fundraising method to a more resilient and deeper platform for capital generation.

According to the report, a pivotal change in the IPO ecosystem occurred post-2020, with mainboard IPOs exceeding 100 in 2025 for the first time since 2007.

In the calendar year 2025, India led globally in the number of IPOs and ranked among the top three markets for IPO proceeds. Unlike other markets that rely on a few large listings, India's IPO activity demonstrated consistent growth across various issue sizes, particularly in the Rs 100–500 crore and Rs 1,000–2,000 crore segments.

There was a notable increase in issuance volumes across both mainboard and SME segments, indicating a shift from opportunistic listings to sustained capital mobilization and broader issuer participation.

Mahavir Lunawat, CMD of Pantomath Capital, stated, "India's IPO market now reflects structural maturity rather than cyclical enthusiasm. The concurrent rise in issuance volumes, average deal sizes, and institutional discipline signifies a sustainable capital-raising framework."

He further added, "With regulatory measures becoming more robust, the outlook for the IPO pipeline is promising. We anticipate over Rs 4 trillion worth of IPOs in 2026, supported by strong domestic interest and selective global capital."

Investor engagement has expanded geographically, with Mumbai representing about 37% and 38% of retail and high-net-worth individual (HNI) applications, respectively. Significant interest was also noted from regions in Gujarat, including Ahmedabad, Surat, Rajkot, Bhavnagar, and Mehsana, as well as from emerging non-metro areas like Bhilai, Kendrapara, and Hisar.

Additionally, foreign portfolio investors continued to enhance global credibility in 2025 through their targeted participation, aiding in disciplined price discovery.