India's IPO market is transitioning into 2026 with measured expectations after experiencing an unprecedented two-year bull run that defied historical patterns. Market experts are observing a notable shift in investor behavior and pricing dynamics that could reshape the primary market landscape in the coming year.

Market Performance Shows Clear Cooling Trends

The IPO market's performance metrics reveal a significant moderation in investor enthusiasm during 2025. Key indicators demonstrate this cooling trend across multiple parameters.

Pranav Haldea, Managing Director of PRIME Database Group, emphasized the historic nature of the recent IPO cycle. "2025 was a blockbuster year, and for the first time in India's IPO history we saw two back-to-back all-time highs," Haldea stated. "Historically, you would see a peak year followed by a lull. This cycle has clearly been different."

Retail Participation Drives Market Dynamics

The surge in IPO activity has been primarily supported by retail investor participation, both through direct investments and mutual fund channels. However, signs of investor fatigue became apparent as listing gains compressed significantly.

"Retail investors largely come for listing pops, and that enthusiasm did taper in 2025," Haldea observed. Despite this moderation, he stressed that underlying demand for fresh equity offerings remains robust due to consistent mutual fund inflows. "There is only so much they can deploy in the secondary market, especially when valuations are stretched. Fresh paper is still required."

Valuation Discipline Expected to Drive 2026 Performance

Market analysts anticipate that realistic pricing strategies will be crucial for IPO success in 2026. Deven Choksey, Managing Director of DRChoksey Investment Managers, noted that market corrections have already begun addressing pricing excesses from the previous year.

"The second half of 2025 itself brought a reality check. Many companies that priced IPOs aggressively are now trading below issue price," Choksey explained. He expects 2026 to prioritize execution over excess, with quality companies adopting more conservative pricing approaches.

Balanced Market Allocation Anticipated

Experts dismiss concerns about heavy IPO issuance negatively impacting secondary markets. Choksey attributed 2025's market pressure primarily to foreign selling rather than domestic IPO activity. "Domestic investors have consistently supported equities. It was foreign selling that pressured markets in 2025," he stated.

With foreign investment flows expected to stabilize and systematic investment plan (SIP) inflows maintaining strength, analysts project a more balanced allocation between new listings and existing stock investments in 2026. The pipeline for 2026 remains robust, though success will depend on maintaining sensible pricing and securing secondary market support.

Asia Pacific's equity capital markets are poised for another exceptional year in 2026, building on unprecedented momentum that established the region as the global leader in share sales. The region's remarkable performance in 2025, combined with a robust pipeline of major offerings, signals continued dominance in the global IPO landscape.

Record-Breaking 2025 Performance

Asia Pacific's equity markets delivered outstanding results in 2025, with comprehensive data revealing the region's commanding position in global capital markets.

The surge was fueled by Hong Kong's sharp rebound and India's second consecutive year of record initial public offerings, marking a significant shift in global capital market dynamics.

2026 Outlook and Projections

Market projections for 2026 indicate continued strength across key Asian markets. Hong Kong listings may raise as much as $45.00 billion in 2026, according to estimates by KPMG LLP, which would represent the biggest haul in six years. Indian IPOs are expected to achieve a third straight annual record, according to banking industry sources.

The 2026 pipeline features major offerings from several high-profile companies across technology, retail, and consumer sectors, with long-dormant IPO plans returning to active consideration.

Major Hong Kong Listings Pipeline

Several significant Hong Kong listings are under consideration for 2026, spanning established conglomerates and technology firms.

Revival of Dormant IPOs:

• A.S. Watson Group: CK Hutchison Holdings Ltd., controlled by billionaire Li Ka-shing, is considering listing its health and beauty retailer in a share sale that could raise $2.00 billion or more. The IPO was originally planned as far back as 2013.
• Syngenta Group: The Chinese-owned agricultural technology company held preliminary talks with financial advisers for a potential 2026 listing, more than a year after withdrawing a $9.00 billion Shanghai listing plan.

Second Listings of Chinese Firms: Multiple Shenzhen and Shanghai-listed companies are pursuing Hong Kong secondary listings:

China's Technology and AI Sector

China's artificial intelligence and semiconductor companies represent major opportunities in the 2026 pipeline. ChangXin Memory Technologies and Yangtze Memory Technologies Co., both chipmakers, are considering mainland China IPOs that could each achieve valuations of as much as 300.00 billion yuan ($43.00 billion).

Baidu Inc. has confidentially filed a Hong Kong IPO for its AI chip unit Kunlunxin, which has been valued at at least $3.00 billion. The technology giant indicated that a carve-out listing would better reflect the unit's value.

India's IPO Market Expansion

India's IPO market continues to demonstrate exceptional strength with major established companies and digital champions preparing for public offerings.

Established Giants:

• Jio Platforms Ltd: Reliance Industries Ltd. has started drafting an initial prospectus for its wireless carrier in what could be India's biggest-ever IPO
• National Stock Exchange of India Ltd: The stock exchange's IPO could come in 2026 at the earliest, according to its CEO
• SBI Funds Management Ltd: India's biggest asset manager is considering an IPO of as much as $1.20 billion in the first half

Digital Champions:

Regional Market Developments

Beyond Hong Kong and India, other Asian markets are contributing to the regional pipeline. Japan's PayPay Corp., SoftBank Group Corp.'s digital payment provider, confidentially filed a draft registration for a US stock market debut. South Korea's SK Hynix Inc. is exploring a potential New York listing to narrow its valuation gap with global peers like Micron Technology Inc.

The Singapore-based fast fashion giant Shein Group Ltd. has confidentially filed for a Hong Kong IPO, though the long-anticipated offering requires Beijing's approval. Malaysia's port operator MMC Port Holdings Sdn. postponed its planned $2.00 billion IPO to 2026 to include full-year results and strengthen valuation.