A Promising Pipeline
The Indian primary market is entering 2026 with a substantial pipeline of companies eager to launch IPOs. As of December 19, the Securities and Exchange
Board of India (SEBI) had approved around 95 companies intending to raise nearly ₹1.26 lakh crore through initial public offerings. Moreover, approximately 103 companies had submitted their offer documents and were awaiting regulatory clearance to gather roughly ₹1.39 lakh crore, according to Prime Database data. This massive pipeline underscores the strong interest from businesses looking to tap into the public markets for funding. The IPO pipeline is characterized not only by its size but also by the increasing prevalence of sizable deals. Among the companies that have valid SEBI approvals and are planning issue sizes of ₹3,000 crore or more are SMPP, Continuum Green Energy, Credila Financial Services, Dorf-Ketal Chemicals, Juniper Green Energy and Clean Max Enviro Energy Solutions, which signifies that the market can accommodate and attract larger offerings.
Record-Breaking 2025
In 2025, the market witnessed a remarkable performance, with 103 mainboard listings that amassed ₹1,75,901 crore. This strong performance has set a positive tone for the upcoming year and is fueling optimism among investment bankers. Amit Ramchandani, Managing Director and CEO of Motilal Oswal Investment Advisors, highlighted the sustained strength of the pipeline across various sectors including financial services, manufacturing, consumption, and new-age businesses. He emphasized the growing focus on newer business models, identifying potential winners, and reasonable valuations. The increasing size and maturity of Indian markets are enabling a larger appetite for bigger issues.
Investor Sentiment Shifts
Investors are increasingly selective, placing greater emphasis on companies' financial performance and governance. Gaurav Sood, Managing Director and Head of Equity Capital Markets at Avendus Capital, observed a notable transformation in the Indian IPO market over the past two years. He noted that large offerings are being absorbed with greater ease, and post-listing performance has been largely constructive. This has significantly boosted confidence among issuers, investors, and intermediaries, highlighting the strength of domestic liquidity. This shift towards selectivity indicates a maturing market where due diligence and sound fundamentals are crucial for success.
Mega IPOs Expected
The trend of large and mega IPOs is expected to continue. Domestic pools of capital are demonstrating the capability to anchor transactions and provide execution confidence to both promoters and private equity sponsors. Several major companies have already signaled their intentions to launch IPOs. Digital payments firm PhonePe filed draft papers in September, aiming to raise ₹11,000 crore, while power generation and supply firm Avaada Electro filed in October, seeking approximately ₹10,000 crore. Furthermore, the National Stock Exchange is anticipated to raise about ₹30,000 crore, Reliance Jio Infocomm is planning an issue size of about ₹25,500 crore, Manipal Health Enterprises is aiming for ₹8,500 crore, and SBI Funds Management could tap the market for roughly ₹11,000 crore.
Sectoral Trends Emerge
Bankers anticipate that listings and divestments led by multinational parents will remain a consistent source of supply as overseas parents monetize Indian platforms amid favorable valuations. Renewable energy and energy transmission platforms are also expected to be active, supported by regulatory clarity and increasing investor confidence in energy-transition assets. The healthcare sector is projected to experience continuous issuance, covering multi-specialty hospital chains and scaled single-specialty platforms, which are backed by strong demand and long-term expansion plans. Renewable energy and energy transmission platforms are also expected to be active, supported by regulatory clarity, long-duration contracted revenues and increasing investor familiarity with energy-transition assets.
A Discerning Phase
Kamraj Singh Negi, Managing Director and CEO of Pantomath Capital, emphasized that the IPO market in 2026 is likely to transition from an era of sheer volume to one of selectivity and differentiation. Issuers will need to showcase clearer earnings visibility, financial discipline, and adherence to governance standards. Overall, he expects 2026 to be a year of consolidation rather than exuberance, which will establish the groundwork for a more robust and sustainable IPO cycle. This indicates that the market is maturing, with investors prioritizing quality and long-term sustainability over short-term gains.
