IPO rush far from over: 192 companies queue up to raise ₹2.5 lakh crore in 2026

India’s primary market shattered all records in calendar year 2025, with 101 mainboard companies making their debut on the domestic bourses after successfully raising ₹1.75 lakh crore via the initial public offering (IPO) route. The fundraising was 9.4% higher than the previous record of ₹1.60 lakh crore garnered by 91 companies last year.

The momentum is poised to continue next year as the pipeline remains strong. As many as 88 companies proposing to raise nearly ₹1.16 lakh crore have received Sebi’s approval, while another 104 companies looking to raise about ₹1.4 lakh crore are awaiting regulatory clearance, according to PRIME Database, a leading provider of capital market data.

“Next year as well, the pipeline is huge. This year has been a record in terms of DRHP filings, and many of these companies are looking to tap the markets. The only real risk is valuations becoming extremely stretched—if that happens, demand could slow,” said Pranav Haldea, managing director of PRIME Database Group.

“The demand is coming from domestic institutional investors and individual investors. As long as these flows continue, I expect the supply of IPOs to 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. But all things considered, if current conditions persist, I expect this momentum to continue into next year,” he added.

Of the total issue size of ₹1.75 lakh crore this year, the offer for sale (OFS) portion—through which promoters and early investors pare their stakes—accounted for 62.7%. Fundraising via the OFS route crossed ₹1.10 lakh crore, surpassing last year’s record high of ₹95,285 crore.

Gaurav Garg, research analyst at Lemonn Markets Desk, said automotive, consumer discretionary and industrial companies led fundraising, supported by financial services and technology.

“Overall, 2025 was characterised by high volumes, sharper pricing discipline and clear performance divergence, with SMEs dominating participation and smaller, sensibly valued offerings leading returns,” he said.

“We expect 2026 to be a stronger year for the Nifty compared with 2025. Several policy-driven tailwinds are likely to start reflecting in economic activity, including GST-related benefits and the growth impulse from the rate cuts implemented in 2025. The revised tax structure, with zero tax up to ₹12 lakh under the new regime, should further support consumption and household spending,” he added.

Garg expects H2 performance to outpace H1. While 2025 was largely a year of consolidation and correction, 2026 appears well positioned for a growth rebound, supported by favourable policies and improved foreign inflows as global quantitative tightening pauses and easing cycles potentially resume.