India’s IPO market has strengthened significantly, becoming the global leader in deal volume and is expected to facilitate around Rs 4 lakh crore of capital formation in 2026, according to a report by Pantomath Capital. Over the past five years until 2025, India’s equity capital markets have evolved into a more robust platform for capital formation from a primarily cyclical fundraising avenue.
The report highlights a pivotal moment for the IPO ecosystem post-2020, with mainboard IPOs exceeding 100 in 2025 for the first time since 2007. India led the world in the number of IPOs in CY25 and ranked among the top three markets for IPO proceeds. The IPO activity in India displayed consistency across issue sizes, with significant growth in the Rs 100–500 crore and Rs 1,000–2,000 crore segments.
Issuance volumes surged across mainboard and SME segments, indicating a transition from opportunistic listings to sustained capital mobilization and broader issuer participation. Mahavir Lunawat, CMD of Pantomath Capital, emphasized that India’s IPO market now reflects structural maturity rather than cyclical enthusiasm, with rising issuance volumes, average deal sizes, and institutional discipline pointing towards a stable capital-raising framework.
Lunawat further stated that with reinforced regulatory oversight and a promising pipeline visibility, the IPO pipeline for 2026 is anticipated to exceed Rs 4 trillion, supported by robust domestic engagement and selective global capital. Geographically, investor participation expanded across India, with Mumbai accounting for a significant portion of retail and HNI applications, while notable interest was observed from regions in Gujarat like Ahmedabad, Surat, Rajkot, Bhavnagar, and Mehsana. The report also highlighted increased involvement from emerging non-metro contributors such as Bhilai, Kendrapara, and Hisar.
Foreign portfolio investors played a crucial role in enhancing global credibility in 2025 through targeted engagement, contributing to disciplined price discovery, as per the report.
