INDIA’S PRIMARY market is well on track to achieve an unprecedented ₹2-lakh-crore milestone this fiscal. With companies having already raised ₹1.59 lakh crore via the initial public offering (IPO) route in the first nine months (till December 23), FY26 is comfortably poised to surpass the previous fiscal’s record of ₹1.62 lakh crore to become the biggest fundraising year in India’s IPO history. With four months remaining and a robust pipeline of more than ₹1.16 lakh crore in planned issues from around 88 companies, the primary market appears well positioned to deliver a record-shattering fundraising tally.

“With 92 IPO listings so far in FY26 raising a total of ₹1,59,314 crore, the Indian primary market is likely to break the previous year’s mobilisation of ₹1,62,517 crore, as well as breach the ₹2,00,000-crore milestone,” says Anil Sharma, co-founder of IPO Central, which tracks the primary market.

What makes this surge even more significant is the contrast with the broader market. While the benchmark indices — the BSE Sensex and the NSE Nifty — have gained up to 10% year-to-date (YTD), they have struggled to maintain a consistent momentum amid global macroeconomic uncertainties. In contrast, the IPO market remains one of the strongest pillars of India’s capital ecosystem, buoyed by robust liquidity, resilient macro fundamentals, and a diverse mix of issuers tapping the public markets.

In 2025, 101 mainboard firms have made their debut on the bourses, raising more than ₹1.75 lakh crore — the highest tally in any calendar year. The fundraising is 10% higher than the record ₹1.59 lakh crore mobilised by 91 companies in 2024.

A strong pipeline

According to PRIME Database Group, the IPO pipeline will continue to remain robust, as around 88 companies have the Securities and Exchange Board of India’s (Sebi) nod to raise a cumulative ₹1.16 lakh crore. The list includes several big-ticket public issues such as Clean Max Enviro Energy Solutions (₹5,200 crore), Fractal Analytics (₹5,000 crore), Credila Financial Services (₹5,000 crore), Dorf-Ketal Chemicals (₹5,000 crore), and Shiprocket (₹2,000 crore).

Another 104 companies, looking to raise around ₹1.4 lakh crore, are awaiting approval after filing their draft red herring prospectus (DRHP). The roster includes a broad and diverse mix of companies such as Zepto (₹11,000 crore), PhonePe (₹11,000 crore), SAEL Industries (₹4,575 crore) and Sify Infinit Spaces (₹3,700 crore).

“This year has been a record in terms of DRHP filings... The pipeline is huge next year as well. The only real risk is valuations becoming extremely stretched. If that happens, demand could slow,” says Pranav Haldea, MD, PRIME Database Group.

“The demand is from domestic institutional investors and individual investors. As long as these flows continue, the supply of IPOs will remain strong. Of course, if there is a black-swan event or a sharp rise in market volatility leading to a major correction, overall activity could pause,” he adds.

DRHP activity also saw a record surge this year. As of November 20, 243 companies had filed their IPO documents with Sebi, proposing to raise ₹3.45 lakh crore — the highest ever for any calendar year. For comparison, 2024 saw 157 companies filing DRHPs with a proposed issue size of ₹2.79 lakh crore.

Momentum to continue

The momentum is being supported by a combination of strong earnings and deeper domestic liquidity, says Amit Ramchandani, MD and CEO of investment banking at Motilal Oswal Financial Services. “Over the past few quarters, corporate profits have grown in double digits, led by sectors such as telecom, metals, technology, and NBFC lending. In fact, mid-cap companies have delivered over 30% year-on-year earnings growth recently, signalling broad-based strength across the economy,” he adds.

Domestic mutual funds continue to set the tone for demand, adds Ramchandani. Strong flows and a structural overweight on domestic themes mean they are taking meaningful positions in well-governed, scaled new-age businesses, even when secondary indices are choppy.

Sunny Agrawal, head of fundamental research at SBI Securities, agrees. “The benchmark indices are at record highs despite heavy FII selling, and this will keep attracting new offerings. Many businesses, formed a few years ago, are funded by strategic investors. They would look to cash in on the buoyant market.” However, he warns that money will come only from quality IPOs backed by fundamentals and reasonable valuations.

Ramchandani expects the IPO momentum to continue into 2026. “Earnings growth is projected to improve further in the coming quarters, with several sectors — technology, clean energy, financials, capital goods, and consumer-facing businesses — showing strong visibility. Market valuations remain broadly aligned with long-term averages, which support continued primary market activity.”

Agrawal says India’s economy has more room for growth over the next few decades. “The stock market is still shallow with limited direct participation, as overall demat accounts are just 210 million (around 15% of the total population).”

With the previous years setting the tone for record fundraising, a historically high number of filings, deepening domestic liquidity, and a steady queue of large issuers, analysts believe the stage is set for FY26 to emerge as the blockbuster year of India’s IPO history.