India's primary market continues its remarkable growth trajectory with a robust pipeline for 2026, following a record-breaking 2025 that saw 103 mainboard companies raise ₹1.76 lakh crore. According to PRIME Database, 96 companies with SEBI approval are ready to mobilise ₹1.25 lakh crore, while another 106 companies awaiting regulatory clearance plan to raise ₹1.40 lakh crore, positioning India for sustained capital market leadership.

Strong 2026 Pipeline and Market Readiness

The IPO pipeline demonstrates exceptional depth with 202 companies across two approval stages targeting combined fundraising of ₹2.65 lakh crore. Among these, seven new-age technology companies (NATCs) collectively plan to raise ₹22,500 crore. Additionally, 85 NATCs are preparing offer documents with fundraising plans of nearly ₹1.50 lakh crore, indicating strong technology sector participation.

2025 Performance: Record Volumes with Moderated Response

The year 2025 witnessed 373 total IPOs raising ₹1.95 lakh crore, with mainboard issues contributing ₹1.76 lakh crore through 103 listings—a 10.00% increase from 2024. However, investor response showed signs of moderation compared to the previous year's exuberance. Of 102 IPOs with available subscription data, 61 issues (60.00%) received mega response of over 10 times subscription, down from 72.00% in 2024.

Retail Participation and Market Dynamics

Retail investor participation reflected the market's maturing dynamics, with average applications declining to 14.99 lakh from 18.87 lakh in 2024. LG Electronics led retail interest with 54.49 lakh applications, followed by Meesho (54.12 lakh) and Standard Glass Lining Technology (49.34 lakh). In value terms, retail investors applied for ₹2.95 lakh crore worth of shares, representing 68.00% of total IPO mobilisation compared to 113.00% in 2024.

Listing Performance and Quality Focus

Listing performance indicated increased selectivity among investors, with average listing gains moderating to 10.00% from 30.00% in 2024. Only 37 out of 102 IPOs (36.00%) delivered listing-day gains exceeding 10.00%, compared to 67.00% in the previous year. Highway Infrastructure topped performance charts with 75.00% listing gains, followed by Urban Co. (62.00%) and Aditya Infotech (61.00%).

According to Pranav Haldea of PRIME Database, maintaining valuation discipline alongside stable secondary market conditions could establish a golden phase for India's IPO market, reinforcing the country's position as a premier global destination for equity capital formation.

India's primary market scripted history in 2025, with IPO fundraising hitting an all-time high of ₹1.76 lakh crore even as signs of valuation fatigue and moderating investor enthusiasm emerged beneath the headline numbers. This marks the first time in India's history that IPO fundraising has achieved record highs for two consecutive years, breaking the traditional pattern where bumper IPO years were followed by 2-3 year lulls.

Record Breaking Performance Amid Market Moderation

A total of 103 companies tapped the mainboard markets in 2025, surpassing the previous high of ₹1.60 lakh crore achieved by 91 companies in 2024. However, despite record IPO numbers, overall public equity fundraising declined 18% year-on-year to ₹3.06 lakh crore from ₹3.74 lakh crore in 2024, dragged down by weaker activity in QIPs, FPOs and OFS transactions.

Promoter Exits Dominate Market Structure

The 2025 IPO landscape was characterized by significant promoter and investor exits rather than fresh capital raising. Offers for sale by private promoters accounted for 45% of total IPO proceeds at ₹79,030 crore, while fresh capital raised formed just 37% at ₹64,406 crore. PE/VC exits contributed another 12% at ₹20,643 crore, highlighting the exit-heavy nature of the current IPO cycle.

Major Deals and Market Reception

The largest IPO of 2025 was Tata Capital, which raised ₹15,512 crore, followed by HDB Financial Services at ₹12,500 crore and LG Electronics India at ₹11,605 crore. The smallest offering was Jinkushal Industries at ₹116 crore. LG Electronics India drew peak retail interest with 54.49 lakh applications, followed by Meesho with 54.12 lakh applications and Standard Glass Lining Technology with 49.34 lakh applications.

Investor Sentiment Shows Moderation

Despite record fundraising, several indicators pointed to cooling investor enthusiasm. Average listing gains fell sharply to 10% in 2025 from 30% in 2024. The average number of retail applications per IPO dropped to 14.99 lakh from 18.87 lakh in 2024. The number of shares applied for by the retail segment by value at ₹2.95 lakh crore was 68% higher than the total IPO mobilization, compared to 113% higher in 2024, showing reduced enthusiasm from retail investors during the year.

Robust Pipeline Signals Strong 2026 Activity

India's primary market is entering 2026 with one of its deepest pipelines on record. As of December 19, SEBI approvals remain valid for around 95 companies planning to raise nearly ₹1.26 lakh crore through IPOs. Additionally, about 103 companies have filed their offer documents and are awaiting regulatory clearance to raise roughly ₹1.39 lakh crore, creating a combined pipeline of ₹2.65 lakh crore.

The pipeline is increasingly skewed towards sizeable deals, with companies like SMPP, Continuum Green Energy, Credila Financial Services, Dorf-Ketal Chemicals, Juniper Green Energy and Clean Max Enviro Energy Solutions among those with proposed issue sizes of ₹3,000 crore or more. Several large issuers have already entered the regulatory queue, including digital payments firm PhonePe planning to raise ₹11,000 crore and power generation firm Avaada Electro targeting around ₹10,000 crore.

Market Outlook and Sectoral Trends

Investment bankers expect IPO momentum to sustain through 2026, supported by improving earnings visibility across financial services, manufacturing, consumption and new-age businesses. The market is witnessing growing appetite for larger issues, with domestic institutional investors playing an increasingly important role in underwriting scale. For the first time in 2025, mutual funds emerged as the largest anchor investors, subscribing to 14.44% of issue amounts, marginally ahead of FPIs at 13.99%.

Sectorally, multinational parent-led listings and divestments are expected to remain a steady source of supply, while renewables and energy transmission platforms are likely to be active. Healthcare is anticipated to see sustained issuance across multi-specialty hospital chains and scaled single-specialty platforms. However, the market is entering a more discerning phase, with investors increasingly focused on clearer earnings visibility, capital discipline and governance standards.