India IPO market eyes $25bn record fundraising 2026

IPO momentum is set to extend into 2026

India’s IPO wave is expected to carry into 2026 as investment banks point to a crowded pipeline and sustained domestic risk appetite. Market participants see the recent run of listings in 2024 and 2025 as a base for another strong year, rather than a one-off spike. JPMorgan Chase has projected IPO fundraising to remain above $10 billion for the next few years. Goldman Sachs and Kotak Mahindra Capital have forecast 2026 proceeds of as much as $15 billion. If that level is reached, it would mark a roughly 14 percent increase over the current year’s level, as cited in the projections.

The argument from bankers is that India’s issuance calendar is deep across sectors, with multiple potential large deals. Kotak’s V Jayasankar has said the momentum from 2024 and 2025 should carry forward and that digital and financial services are likely to remain dominant. The expectation of several billion-dollar-plus IPOs is a key part of the bull case for 2026 fundraising.

Big forecasts: $15 billion IPOs and $10 billion ECM

V Jayasankar, Managing Director and Board Member at Kotak Investment Banking, has framed 2026 as a potential rebound year for equity capital markets (ECM) after a volatile, largely sideways 2025. He said overall ECM fundraising could climb back to around $10 billion in 2026. In his estimate, overall ECM activity may rise from roughly $15 billion in 2025 to about $10 billion in 2026.

Within that broader recovery, IPOs are expected to remain the largest driver. Based on filings and the visible pipeline, Kotak expects IPO fundraising could reach around $15 billion in 2026, up from roughly $11.5 billion in 2025. Jayasankar also flagged a “positive bias” to the IPO number in 2026, while describing QIPs as potentially marginally higher and blocks returning closer to 2024 levels.

Pipeline expectations: more billion-dollar-plus deals

At a press briefing, Jayasankar said “a lot of billion-dollar-plus IPOs will happen” and added that large IPOs could account for around 35 percent of the total fundraise. He also said new-age companies are expected to remain at the forefront of fundraising, similar to last year.

The fundraising outlook is being tied to both issuer confidence and investor willingness to absorb larger transactions. In separate commentary, Kotak has said the volume of IPO applications has been strong, which it reads as growing confidence among issuers in India’s financial markets. Another Kotak view cited that approximately 150 enterprises are set to enter the equity market and that companies could generate over $10 billion in the upcoming year, highlighting that forecasts vary across interviews and timeframes.

Sectors in focus: internet, finance, consumer and industry

Kotak’s sector map for the next phase of listings includes new-age companies, particularly internet businesses. Financial institutions are also expected to remain an important segment, spanning banks, NBFCs and insurance. Jayasankar also pointed to consumer as an important area, while saying industry could be equally important among the set of sectors driving issuance.

The recurring message from bankers is that digital and financial services should dominate the larger deals, while a broader mix of consumer and industrial names supports overall volume. Jayasankar has also said new-age companies have driven IPO returns and expects that to continue.

Potential 2026 listings drawing attention

The list of expected or widely discussed listings is adding to anticipation around 2026. Firms cited as expected to list in 2026 include telecommunications major Jio (Reliance Jio Infocomm), the National Stock Exchange of India (NSE), and Coca-Cola’s Indian bottling arm Hindustan Coca-Cola Beverages.

Separately, the broader pipeline referenced for upcoming months has included Walmart-backed PhonePe and tech unicorns such as Groww and Meesho. The presence of these large consumer-tech and market-infrastructure names helps explain why bankers are comfortable talking about multiple billion-dollar-plus deals.

What 2025 numbers show so far

After a slow start, India’s IPO market has accelerated in 2025, with fundraising volumes and listing activity picking up. Estimates cited place India as the fourth largest fundraiser globally at $14.2 billion, behind the US, Hong Kong and China. Kotak Mahindra Capital estimates that 79 companies raised $11.5 billion in the first nine months of 2025. It also expects another $10 to $11 billion from offerings in the last quarter, which would take the IPO market above $10 billion in 2025, excluding SME fundraising.

Other datapoints underline the scale of large issues. HDB Financial Services’ $1.5 billion IPO was cited as the largest in India for 2025. Another estimate said total IPO proceeds for the year had reached $1 billion at the time of that commentary, while Jefferies Financial projected as much as $18 billion could be raised in the latter half of the year.

Broader ECM context: IPOs up even as ECM dipped

While IPO activity has strengthened, overall ECM volumes have been mixed. The data cited shows overall ECM volumes fell 18 percent year-on-year to ₹5.1 lakh crore (₹510,000 crore) from ₹6.1 lakh crore (₹610,000 crore) in CY24. Despite that, IPO activity “bucked the trend” and grew 13 percent even amid global volatility and a risk-off environment.

For 2026, Jayasankar expects the overall ECM activity to go back to 2024 levels and potentially reach the previous record. He also said the pace of QIPs is rising in 2026, but added that 2026 ECM activity would be driven by IPOs and blocks, while QIPs would still be muted.

Returns, valuation discipline, and investor expectations

One reason IPOs have remained attractive is investor expectations of listing gains. Jayasankar said investors currently perceive IPOs as a more attractive avenue for returns due to the potential for a 15 to 20 percent surge in stock prices upon listing. But the same set of commentary also carried a cautionary signal on outcomes.

Estimates indicate that around half of the IPOs launched this year are trading below their initial listing prices. Kotak’s analysis said only 43 out of the 79 companies that went public in 2025 have delivered positive returns. The contrast between expected listing pops and uneven post-listing performance is likely to keep valuation discipline and pricing discussions central to upcoming deals.

Liquidity and policy signals supporting participation

Kotak has said robust domestic liquidity from mutual funds, insurers and retail investors has reduced reliance on foreign flows and powered the IPO boom. That domestic bid has been repeatedly cited as a key stabiliser during periods of global uncertainty.

Policy changes have also aimed to accommodate participation. The Reserve Bank of India has increased the IPO financing limit from ₹10 lakh to ₹25 lakh per individual investor, a move that aligns with the rise in retail involvement during the current cycle.

Key numbers at a glance

What investors will watch next

The near-term focus remains on the pace and pricing of the final quarter pipeline in 2025, since Kotak expects another $10 to $11 billion could still come to market. Investors will also track whether post-listing performance improves, given the data showing only 43 of 79 IPOs in 2025 delivered positive returns and roughly half are below listing prices.

For 2026, attention is likely to centre on the expected mega-listings and the share of billion-dollar-plus deals within total fundraising. Banker projections already outline the broad range: IPO proceeds above $10 billion for the next few years, and potentially up to $15 billion in 2026. The next round of filings and offer documents should provide clearer evidence on timing, deal sizes, and whether the projected rebound in overall ECM activity toward $10 billion takes shape.