IPO boom likely to continue in 2026; Rs 2.65 lakh cr fundraising in pipeline, Pg13

Key Highlights:

• India's primary market is expected to continue its IPO boom in 2026, with an estimated Rs 2.65 lakh crore fundraising in the pipeline.
• In 2025, 103 companies raised a record Rs 1.75 lakh crore through mainboard IPOs, a 10% increase from 2024.
• Rs 1.4 lakh crore worth of IPOs are awaiting approval from SEBI, while Rs 1.25 lakh crore worth already have approval.
• Some of the most anticipated IPOs in 2026 include Reliance Jio, the National Stock Exchange, Flipkart, PhonePe, Oyo Rooms and boAt.

Detailed Insights:

• The strong IPO pipeline for 2026 is driven by healthy equity valuations, improving corporate balance sheets, and steady domestic savings flowing into equities.
• In 2025, the average listing-day gain decreased to 10% from 30% in 2024, and retail interest also dampened, with average applications falling to 14.99 lakh.
• New-age technology companies constitute a small portion of the IPO pipeline, seeking to raise about Rs 22,500 crore, but attract significant investor attention due to their scalability.
• A significant portion of IPO proceeds, around 29%, is being used for debt repayment, indicating a deleveraging trend among companies.
• Overall public equity fundraising fell by 18% year-on-year in 2025 to Rs 3.06 lakh crore due to lower fund mobilization through FPOs, stake sales, and QIPs.
• The Securities and Exchange Board of India (SEBI) plays a crucial role in regulating the IPO market by approving offer documents and ensuring investor protection.
• Maintaining reasonable valuations and stable market conditions are crucial for the IPO market to thrive in the coming years.

Key Concepts Involved:

• Initial Public Offering (IPO): The first sale of stock by a private company to the public.
• Follow-on Public Offer (FPO): Issuance of shares to investors by a company already listed on the stock exchange.
• Qualified Institutional Placement (QIP): A way for listed companies to raise capital by issuing securities to qualified institutional buyers.
• Securities and Exchange Board of India (SEBI): The regulator of the securities market in India.