India's primary market, fresh off a record-breaking fundraising year in 2025, shows no signs of slowing down as it marches into 2026. A robust pipeline of companies is gearing up to tap the capital markets, with an estimated total fundraising target of a staggering Rs 2.65 lakh crore. This signals the potential for the country's initial public offering (IPO) boom to not just sustain but potentially surpass last year's historic performance.
A Diverse Pipeline Awaits Regulatory Nod
According to a report by market data provider PRIME Database, the foundation for 2026's activity is already solid. Companies spanning a wide spectrum of the economy—including financial services, manufacturing, consumer goods, technology, and infrastructure—are in the queue. The pipeline is bifurcated into two clear streams: IPOs worth approximately Rs 1.40 lakh crore are currently awaiting approval from the Securities and Exchange Board of India (SEBI). Simultaneously, another Rs 1.25 lakh crore worth of public offers already hold the regulator's green light and are in the final stages, waiting for the right window to debut on the stock exchanges.
This sustained momentum is underpinned by a confluence of supportive factors. Despite some cooling in investor appetite, healthy equity valuations, stronger corporate balance sheets, and a steady influx of domestic savings into equities have created a favourable environment for companies to list. Pranav Haldea, Managing Director of PRIME Database, highlighted the uniqueness of the current cycle, noting, "It is for the first time in India’s history, that there have been two consecutive years of all-time high IPO fundraising activity."
2025: A Record Year with Mixed Signals
The optimism for 2026 builds directly on the blockbuster performance of the preceding year. In the calendar year 2025, 103 companies raised a record Rs 1.75 lakh crore through mainboard IPOs. This marked a 10% increase from the Rs 1.59 lakh crore raised in 2024. The year was punctuated by several mega-issues, including Tata Capital (Rs 15,511.87 crore), HDB Financial Services (Rs 12,500 crore), LG Electronics India (Rs 11,605 crore), and Lenskart Solutions (Rs 7,278 crore).
However, the year also presented some cautionary notes. Overall public equity fundraising actually declined by 18% year-on-year to Rs 3.06 lakh crore, dragged down by lower mobilization via routes like Follow-on Public Offers (FPOs) and Qualified Institutional Placements (QIPs). Retail investor enthusiasm also showed signs of moderation. The average number of applications from retail investors fell to 14.99 lakh from 18.87 lakh in 2024. Furthermore, the euphoric listing-day gains of the past cooled significantly, with the average gain dropping to 10% from 30% a year ago.
New-Age Tech: Small in Number, Big on Attention
An interesting facet of the 2026 pipeline is the composition of companies. Of the 202 firms currently in line for an IPO, only seven are classified as new-age technology companies. Together, they seek to raise about Rs 22,500 crore. Despite this relatively small share by volume, such companies continue to command disproportionate attention from investors globally, drawn by their scalability and potential for exponential growth. This often translates into valuation premiums far exceeding those of traditional businesses, even in the absence of near-term profits. Legacy examples like Zomato's parent Eternal, Nykaa's FSN E-Commerce, and Paytm's One 97 Communications illustrate this trend.
What to Expect in 2026: Big Names and Cautious Optimism
The coming year is expected to be headlined by some of India's most prominent unicorns and established giants. The most anticipated IPOs likely include Reliance Jio, the National Stock Exchange (NSE), Flipkart, PhonePe, Oyo Rooms, and boAt. The market will be closely watching the valuation benchmarks set by these issuers, especially after scrutiny over high valuations and the increasing share of Offer-for-Sale (OFS), where promoters exit, in 2025's IPOs.
The future trajectory hinges on market discipline and stability. Haldea adds that scores of companies, including 85 new-age technology firms looking to raise Rs 1.50 lakh crore, are preparing to file their documents. "If valuation discipline is maintained by issuers and the secondary market continues to remain stable, even if not bullish, the next few years can be a golden era for India’s IPO market," he stated. The stage is set for 2026 to potentially write a new chapter in India's capital market history.
