India’s IPO fundraising soars nearly 12× over a decade; analyst eyes ₹4 lakh crore milestone in 2026

After a record-breaking year that saw 373 IPOs—comprising 103 mainboard and 270 SME issues—raise ₹1.95 lakh crore in 2025, India’s equity capital markets are expected to facilitate close to ₹4 lakh crore of capital formation in 2026, according to the latest report by Pantomath Capital Advisors, the investment banking arm of the Pantomath Group.

Over the past ten years, India’s IPO fundraising has expanded sharply by nearly 12 times, from ₹13,874 crore (mainboard and SME) in CY15, reflecting a broader and more inclusive primary market that increasingly supports companies across stages of growth. Mainboard IPO capital-raising activity has grown at a 29% CAGR, anchoring overall capital mobilisation, while SME IPO fundraising has expanded even faster at a 46% CAGR, the report noted.

Stage set for bigger capital formation

“India’s IPO market has now entered a structurally stronger phase, emerging as the global leader by deal volume, with the country’s capital markets poised to facilitate close to ₹4 lakh crore of capital formation in 2026, underscoring the growing depth, scale, and maturity of India’s primary market ecosystem,” said the Primary Pulse 2025 Report by Pantomath Capital.

As per the report, a key milestone was achieved in 2025, when mainboard IPOs crossed the 100-mark for the first time since 2007, underscoring the scale of the revival. India also led global IPO charts in terms of the number of listings in calendar year 2025 and ranked among the top three markets worldwide by IPO proceeds. Fresh issue components consistently accounted for 35–40% of total IPO proceeds post-2021, signalling rising use of IPOs as growth capital rather than pure monetisation.

“India’s IPO market today reflects structural maturity rather than cyclical exuberance,” said Mahavir Lunawat, CMD, Pantomath Capital. “The simultaneous rise in issuance volumes, average deal sizes, and institutional discipline points to a durable capital-raising framework. With regulatory guardrails continuing to strengthen and pipeline visibility improving, we expect more than ₹4 lakh crore worth of IPO pipeline in 2026, supported by strong domestic participation and selective global capital.”

Increasing role of IPO market in growth financing

According to the report, India is one of the few large markets where public markets play a meaningful role in growth financing. Primary market fundraising in India is equivalent to around 49% of private capital raised, far higher than in developed markets such as the US (9%) and Europe (13%), where companies rely predominantly on private capital and access public markets much later.

“This reflects strong domestic investor participation, supportive regulation, and issuer confidence in IPOs as a scalable funding route. By comparison, China’s outsized public-market dominance (1,800%) and ASEAN’s 71% highlight very different capital-formation models. India’s near-balance between public and private capital underscores market maturity and a diversified growth architecture,” the report highlighted.

Deal sizes, volumes rise

One of the most striking trends is the rise in average deal sizes alongside higher issuance volumes. The average mainboard IPO size increased from ₹1,100 crore in 2015–2019 to ₹1,570 crore during 2020–2025 YTD, indicating stronger reliance on public markets for growth capital. SME IPO sizes more than doubled from ₹11 crore to ₹24 crore, reflecting deeper capital absorption and widening investor participation, the report said.

The report further revealed that the ₹100–500 crore segment grew at a 58% CAGR between 2020 and 2025, while the ₹1,000–5,000 crore segment expanded at a faster 68% CAGR, indicating parallel growth in mid-sized and large issuances. Meanwhile, big-ticket IPOs above ₹5,000 crore accounted for only 8–14% of total volumes.

The report also highlights a steady deepening of investor participation across geographies. While Mumbai continues to serve as the primary anchor—accounting for approximately 37% of retail and 38% of HNI applications—participation from Gujarat-based centres such as Ahmedabad, Surat, Rajkot, Bhavnagar, and Mehsana has grown meaningfully. Importantly, non-metro locations including Bhilai (Chhattisgarh), Kendrapara (Odisha), and Hisar (Haryana) have emerged as notable contributors, underscoring the democratisation of equity investing and the widening reach of India’s capital markets beyond traditional financial hubs.

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