Even as Indian markets navigate bouts of volatility, companies are rushing to tap the primary market, building an IPO pipeline exceeding Rs 2.55 lakh crore for the coming year.
The frenzy follows a blockbuster 2025, when about 100 Indian firms, its highest count since 2007, raised a record Rs 1.77 lakh crore through mainboard offerings, according to Prime Database. This momentum has only strengthened: 2024 saw 91 IPOs mopping up Rs 1.6 lakh crore, while 2023 recorded 57 IPOs raising over Rs 49,500 crore.
For the year ahead, the queue is already long and growing. Eighty-eight companies have secured SEBI approval to float IPOs worth roughly Rs 1.16 lakh crore, while another 104 await clearance to raise nearly Rs 1.4 lakh crore.
The appetite for going public is evident from the unprecedented 244 draft red herring prospectuses filed in 2025—far surpassing the 157 filings seen in 2024.
Market experts say the surge is being powered by buoyant investor sentiment, active private equity and venture capital funds looking to monetise assets, and a broader bullishness that makes IPOs an attractive exit route.
The year’s fund mobilisation came despite subdued listing gains, thanks largely to steady participation from foreign portfolio investors, retail buyers, high-net-worth individuals and mutual funds at a time when secondary markets remained restrained.
The year 2025 also stood out for the scale of shareholder exits. Promoters, PE firms and venture capital investors have collectively offloaded over Rs 1.1 lakh crore worth of shares through offers for sale, underscoring the strong demand pipeline.
Analysts believe the ambitious Rs 2.55 lakh crore fundraising target for the New Year is well within reach, buoyed by resilient investor appetite and a robust IPO pipeline. This optimism comes even as the broader market shows signs of divergence: India’s small-cap segment, which has trailed behind large- and midcap indices this year after two consecutive years of outsized gains, is expected to remain under pressure through 2026.
Stretched valuations, moderating earnings momentum and thin liquidity are likely to keep smallcaps on a weaker footing, analysts said, though the enthusiasm surrounding primary offerings suggests that capital-raising activity will remain largely insulated from these headwinds.
Rajesh Palviya of Axis Securities noted that companies across the spectrum, especially new and smaller businesses, are seeking capital for expansion, setting up operations, or repaying obligations.
He added that abundant local liquidity and a resilient retail investor base have ensured strong responses to almost every IPO. With the economy on a firm footing and a new cohort of businesses emerging, Palviya said many PE-backed firms that received investments in recent years are now ready to unlock value through mainboard listings.
Investors are also watching for marquee names expected to enter the IPO arena in the coming year. Anticipation is high for filings from NSE, Reliance Jio, and Manipal Hospitals. PhonePe, which has already submitted draft papers for a Rs 10,000 crore issue, is among the most-awaited listings. New-age players such as Zepto, Boat, OffBusiness, and CoreFoods are also likely to add excitement to the IPO calendar.
Analysts maintain that, much like 2025, IPOs featuring large offer-for-sale components should still draw robust demand. With liquidity plentiful and sentiment firmly anchored in India’s growth story, the market shows little sign of entering a bearish phase, setting the stage for another energetic year in the primary market.
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