Rs4 lakh crore IPO wave ahead in 2026, says Pantomath

markets

India’s primary markets are on the cusp of a major milestone, with nearly Rs4 lakh crore in capital formation expected through IPOs in 2026. But beyond the headline number, the bigger story is that the IPO boom is no longer cyclical — it is becoming structural, according to Pantomath Capital’s Primary Pulse 2025 report.

The study finds that India now leads the world in IPO volumes and has firmly transitioned from opportunistic listing waves to steady, broad-based capital mobilisation. Mainboard IPOs crossed the 100-deal mark in 2025 — the first time since 2007 — supported by a healthy mix of offerings across sizes, particularly in the Rs100–500 crore and Rs1,000–2,000 crore bands. Unlike markets dominated by a few blockbuster issues, India’s pipeline reflects continuity and depth.

Crucially, the quality of capital deployment is improving. More than three-quarters of IPO proceeds are being channelled toward expansion, capacity creation, working capital and debt reduction — signalling productive investment rather than financial restructuring. Fund mobilisation has been led by financial services, followed by manufacturing, industrials and consumption-linked sectors, aligning closely with India’s long-term growth themes, the report said.

The report also added that the investor participation is widening alongside. While Mumbai remains the anchor, strong demand is emerging from Gujarat hubs such as Ahmedabad, Surat and Rajkot — and increasingly from non-metro centres like Bhilai, Kendrapara and Hisar, highlighting the democratisation of equity investing, it said.