IPO: The pace of fundraising through IPOs has increased, with $20 billion worth of issues lined up in 2026.:

News Topical, Digital Desk : India's capital markets are steadily strengthening. The pace of fundraising through IPOs is steadily increasing. Over the past five years, companies have raised record levels of funds from the market, and this pace is expected to continue into next year. According to recent data from Equirus Capital, between 2020 and 2025, companies will raise a total of ₹5,394 billion through IPOs, exceeding the total ₹4,558 billion raised between 2000 and 2020. This means that more funds will be raised in the next five years than were raised in the first 20 years after 2000.

Large amount raised from fewer issues

What makes this boom special is that while in the first 20 years a large number of IPOs had to be launched, now more funds have been raised from fewer IPOs. Only 336 IPOs were issued between 2020 and 2025, compared to 658 IPOs between 2000 and 2020. Bhavesh Shah, Managing Director and Head of Investment Banking, Equirus Capital, said, “One of the reasons for this increase in capital raising is that the average IPO size in the last five years has been Rs 1,605 crore, while the average IPO size between 2000 and 2020 was only Rs 692 crore.”

Increasing share of OFS and better earning opportunities The rapid growth of India's capital markets has provided promoters and financial investors with better opportunities to earn money by selling their stakes. Shah said, “The growing acceptance of offers for sale has helped private equity funds exit their investments and made it easier for promoters to raise funds by selling parts of their successful businesses.” Trends in private equity (PE) exit methods also reinforce this growth. In the first 10 months of 2025, the share of secondary sales in PE exits increased to 16% from 7% in 2024. While block deals remain the most commonly used method, their contribution declined from 67% in 2024 to 56% in January to October 2025. Shah further added, “This deal volume will increase further in the coming years, as $165 billion of PE investments are maturing and will soon enter the disinvestment phase.”

Three Key Trends Driving the IPO Market in 2026 According to Equirus, three major trends will shape India's IPO market in 2026: The first trend is strong investor interest in IPOs from new-age and digital economy companies. The second trend is larger-sized IPOs that will set new records and bring more liquidity to the market. The third trend is the expansion of the capital market to smaller cities, i.e., an increase in the number and participation of IPOs from tier-2 and tier-3 cities. Shah said, "Issues from tier-2 and tier-3 cities now account for more than a quarter of the total IPO value, compared to just 4% in 2021."

India's rapid economic growth is strengthening the market. India remains the world's fastest-growing large economy. This is due to improvements in manufacturing, schemes like Make in India and Atmanirbhar Bharat, and strong entrepreneurship. Shah said, "Today, India has emerged as a global leader where investors can find consistent and sustainable growth." This growth is also reflecting domestic investment in the capital markets. Domestic institutional investors now hold more shares of NSE-listed companies than foreign investors (FIIs). Shah added, "By 2026, we see a strong pipeline of IPOs and expect approximately $20 billion in capital to be raised through this route."