India's Record Rs 2 Lakh Crore IPO Pipeline for 2026 Comes With a Listing Day Warning

India's IPO market is gearing up for a potentially record-breaking year in 2026, with over Rs 2.5 lakh crore expected to be raised through initial public offerings. While the pipeline is substantial, experts caution that strong listing-day gains may be less frequent than in the past.

Fueled by companies in the technology, financial services, and consumer-facing sectors, the IPO boom shows no signs of slowing down. Major listings anticipated include Reliance Jio, Flipkart, and PhonePe.

According to Prime Database, 84 companies have already secured approval from SEBI, the market regulator, with plans to raise approximately Rs 1.14 lakh crore. An additional 108 companies are awaiting SEBI approval, seeking to raise around Rs 1.46 lakh crore. This brings the total potential fundraising to over Rs 2.5 lakh crore, spread across more than 190 companies in various stages of approval. This robust pipeline suggests the IPO market will remain vibrant well into 2026.

This surge in IPO activity follows a significant revival in the Indian primary market over the last couple of years. In 2024, companies raised Rs 1.59 lakh crore, nearly tripling the amount from the previous year, marking a decisive turnaround. The momentum has continued throughout 2025; nearly Rs 1.8 lakh crore has been raised through December 12, and the total is expected to slightly exceed that figure by year-end. That said, the reality is a bit more complicated. average listing-day returns have decreased to 9.4% in 2025, the lowest since 2018, signaling a shift where company fundamentals and business growth are paramount.

Pranav Haldea, Managing Director of Prime Database Group, attributes the strong pipeline to sustained confidence in India's capital markets among promoters and private equity investors. He anticipates a healthy flow of IPOs into the coming year, provided the secondary markets remain supportive. While short-term market fluctuations may cause delays, the overarching trend indicates that companies increasingly view public markets as a reliable source of long-term capital.

Echoing this sentiment, Abhinav Bharti, Head of Equity Capital Markets at JP Morgan, suggests that yearly issuance of around $20 billion could become the new normal for India. He notes that consumer technology and new-age businesses are expected to drive approximately one-fifth of IPO demand. At least 20 startups, each valued in the hundreds of millions of dollars, are actively preparing for IPOs, with four to five companies potentially seeking to raise over $1 billion each, totaling as much as $8 billion.

According to analysts tracking these trends, the groundwork for this growth has already been laid in 2025. Despite a relatively subdued secondary market and net selling by foreign institutional investors, strong domestic institutional and retail participation has sustained the IPO market's momentum, according to Mirae Asset ShareKhan's Research Analyst, Thomas V Abraham. He also noted that high valuations have reduced opportunities for quick listing gains.

Bhavesh Shah, Managing Director and Head of Investment Banking at Equirus Capital, anticipates that digital economy platforms, financial infrastructure plays, and scaled consumer businesses will be the defining themes of 2026. Potential listings from companies like Oyo, PhonePe, and Flipkart are expected to lead the new-age segment, while Reliance Jio, NSE, and SBI Mutual Fund could represent significant milestones for the market. Reliance Jio's IPO, in particular, is projected to be one of the largest in Indian history, potentially involving a 10% equity dilution in mid-2026. The NSE IPO, which has been delayed, is also gaining traction, with the exchange reportedly allocating Rs 1,300 crore to settle pending issues with SEBI. Clearance could pave the way for its listing.

Flipkart is reportedly targeting a 2026 listing with a valuation between $60-70 billion. The e-commerce giant, backed by Walmart, boasts scale, brand recognition, and a large customer base. PhonePe has already confidentially filed draft papers with SEBI for a $1.5 billion IPO, which would value the payments company at around $15 billion. SBI Funds Management, the largest asset manager in India by assets, is considering raising up to $1.2 billion through an IPO in the first half of 2026, offering investors exposure to the expanding mutual fund industry.

While achieving easy listing-day gains may be more challenging amidst increasing IPO supply, the long-term outlook for the IPO market remains positive. This situation signifies a transition towards a more mature primary market, where company fundamentals are key. According to Abraham, 2025 demonstrated that businesses with sound fundamentals are more likely to succeed, potentially leading to a more disciplined market in 2026 with normalized pricing.