India’s initial public offering (IPO) market has moved beyond cyclical swings and is now structurally driven by domestic capital, financialisation of savings and a sustained capital expenditure cycle, Mahavir Lunawat, chairman of the Association of Investment Bankers of India (AIBI) and CMD of Pantomath Capital, said today.

Speaking at AIBI’s 14th annual convention in Mumbai, Lunawat said the domestic capital markets are at an inflection point, marked by a rapidly widening investor base and deeper participation across primary and secondary markets.

“India is at an inflection point where capital markets are growing stronger with a continuously widening investor base. At AIBI, our continuous efforts are focused on creating a robust investment culture and enabling access to knowledge and intelligence for better capital formation,” Lunawat said.

The convention, which brought together over 1,500 delegates including regulators, policymakers, investors and investment banking professionals, reaffirmed AIBI’s commitment to working closely with regulators, exchanges and market participants to strengthen market integrity, enhance investor confidence and support sustainable growth in India’s capital markets.

Highlighting the scale of India’s primary market expansion, Lunawat said the country witnessed around 1,256 IPOs across mainboard and SME platforms between 2020 and 2025, mobilising nearly ₹6.2 lakh crore. Primary market activity accelerated sharply in the last two years, with 331 IPOs raising ₹1.7 lakh crore in 2024, followed by a record 373 IPOs that raised ₹1.9 lakh crore in 2025.

Global IPO data for 2025 underscores India’s leadership in equity issuance, Lunawat said. India ranked first globally by number of IPOs, accounting for nearly one-fifth of worldwide listings, ahead of the United States, Greater China and Europe. In terms of proceeds, India ranked fourth globally, contributing around 11% of total global IPO funds raised.

India’s market capitalisation has crossed $5.2 trillion, making it the world’s fourth-largest equity market and reflecting the country’s growing stature as a global economic powerhouse. Looking ahead, Lunawat said capital formation through the primary market is expected to be in the range of ₹3.5–4 lakh crore by FY27.

On the regulatory front, Lunawat said the recent amendments to merchant banking regulations notified by the Securities and Exchange Board of India (Sebi) mark a significant step towards strengthening the credibility and long-term resilience of the capital markets ecosystem.

“By raising regulatory expectations, sharpening accountability and clearly defining the role of merchant bankers, the framework reinforces trust across issuers, investors and intermediaries,” he said, adding that while the enhanced norms demand stronger governance and more robust internal processes, they also create opportunities for institutions prepared to adapt.

For the investment banking profession, Lunawat said the transition is not merely about compliance but about building stronger organisations anchored in integrity, innovation and long-term value creation, well positioned to support India’s next phase of capital formation.