The 2026 IPO crystal ball: Rs 4 lakh cr can be raised; know which sectors can dominate
Pantomath Capital thinks mobilisation of capital via IPOs in 2026 is going to take a quantum jump in 2026. While about Rs 1.95 lakh crore was raised in 2025, it might leap to anywhere between Rs 3.5 lakh crore and Rs 4 lakh crore can be mopped up in 2026. A note by Pantomath Capital says that India was the top country in the world in terms of the number of IPOs floated in 2025.
Kolkata: The IPO market in India is moving structurally to a different plane and 2026 can witness capital formation through public issues reach a new zone altogether and as much as Rs 4 lakh crore can be raised by Indian companies through this route, Pantomath Capital has said. "We anticipate a shift towards larger offerings across both mainboard and SME segments, resulting in higher average issue sizes. On this basis, primary market fund mobilisation in 2026 is expected to be in the range of Rs 3.5 to Rs 4.0 lakh crore," wrote Pantomath Capital in a detailed note.
"2026 is expected to mark a phase of consolidation and quality led growth for Indian capital markets. Issuance activity will be shaped by a more selective, institutionally anchored market environment, with stronger emphasis on issuer quality, governance standards, and earnings visibility. Market depth, pricing discipline, and institutional maturity are set to strengthen further, reinforcing India's position as one of the most resilient and structurally robust equity markets globally," observed the financial services group and mid-market investment bank.
The note also mentioned that mutual funds and FPIs will continue to participate selectively in IPOs this year and will focus on rational pricing of issues. It also mentioned that data show that nearly 75% of IPOs list at a premium, "with sustained gains increasingly linked to scale, governance, and earnings visibility rather than deal size alone".
Which sectors to dominate the IPO market
Since investors are showing preference for new age businesses, such ventures in sectors such as financial services, manufacturing, infrastructure linked industries, and consumption-oriented businesses are expected to dominate the IPO market. "The increasing use of QIPs, which peaked at 1.36 trillion in 2024, alongside rights issues, will further complement IPOs, creating a multi-channel capital raising ecosystem," it mentioned in the note.
Highlights of the Indian IPO market
India top country in terms of number of public issues
Fund raising via IPOs surges nearly 12 times in 10 years
In 2025, 103 mainboard and 270 SME IPOs raised about Rs 1.95 lakh cr
Top mutual funds, FPIs emerge as key support pillars in anchor book
OFS component share dips from 87% in 2020 to 63% in 2025
Financial services, consumer and IT sectors lead fundraising via IPOs
Many tier 2/3 towns feature in top locations for fund mobilisation
Number of IPOs projected for 2026
Pantomath Capital expects IPO numbers to remain elevated but more calibrated. "Based on historical trends and the visible pipeline, mainboard IPO activity is likely to remain in the 100 to 120 range, while SME listings could exceed 250, subject to market conditions. Fund mobilization is expected to normalize from the 2025 peak but remain well above long term averages, supported by a decade long CAGR of 29 percent in mainboard fundraising and 46 percent in SME fundraising," it projected.
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