India's IPO market, which started 2026 on a slow note, is now racing to close the gap with last year's record fundraising as a sharp revival in July and August, a strong listing scorecard and the likely launch of mega issues such as Jio Platforms and NSE have brought the primary market back in focus. Analysts believe there is a strong possibility that IPO fundraising in 2026 will surpass that of last year.
IPO fundraising in 2025 stood at around Rs 1.76 lakh crore. If the number is surpassed, the figure will be close to record Rs 2 lakh crore. For that to happen, whether one or both of the two mega IPOs, Jio Platforms and NSE, will have to hit the Street before the end of the year and the buzz in the industry is that they will tap the markets this year. Alongside these, a long queue of mid-sized and small-sized issues is expected to keep the pipeline busy.
Mahavir Lunawat, CMD of Pantomath Capital, said there is a strong possibility that IPO fundraising in 2026 will surpass last year's level. "The momentum has clearly accelerated and January to August 2026 has already seen more than 60 IPOs raise nearly Rs 74,000 crore, which is more than the amount raised in the corresponding period of 2025," Lunawat said.
Serveral large-sized issues in the queue, along with a strong pipeline of mid- and small-sized IPOs, that could lift the full-year number sharply from current levels. "So, I would expect 2026 to be a potentially stronger year, provided market conditions remain supportive. More importantly, this reflects a structural deepening of India’s equity capital markets rather than merely a short-term IPO cycle," he said.
Second-half revival changes the mood
The primary market was relatively dull in the first half of 2026 as volatile secondary markets, valuation concerns and weak risk appetite kept many issuers on the sidelines. Several companies delayed launches, waiting for better market conditions and stronger investor demand.
That changed in the last two months. July and August saw a sharp pick-up in IPO launches, mopping up nearly Rs 50,000 crore, helped by improved domestic liquidity and better listing performance. August, in particular, stood out as one of the strongest months for new listings this year.
The performance of recent IPOs also helped improve sentiment. Out of 17 IPOs that listed in August, 15 gave positive listing-day returns, translating into a hit rate of nearly 88%. A large number of those issues also continued to trade above their offer prices after listing, showing that gains were not limited to opening-day pops.
Retail-heavy IPOs also delivered strong returns. In a sample of highly subscribed issues, several stocks remained well above their issue prices, with gains of up to 76% after listing. This helped bring retail investors back to the primary market after a patchy start to the year.
Jio and NSE could tilt the scale
The biggest swing factor for 2026 fundraising is the expected launch of large issues. Jio Platforms' IPO is expected to be in the Rs 30,000-40,000 crore range, while NSE is also expected to be a large offering if it comes to the market this year.
Investment banking sources said the recent momentum is not a short-term spike, but part of a broader fundraising cycle. "The momentum we've seen over the last couple of months isn’t a blip; it’s a continuation of what’s already been two consecutive years of record IPO fundraising in India," the person said.
Demand strong, but more selective
Lunawat said demand for marquee IPOs is expected to remain strong because of domestic liquidity and the quality of the businesses coming to market. "Given the depth of domestic liquidity and the scale and quality of these businesses, absorption is expected to be high," he said.
He added that August was an exceptional month, with 10 IPOs receiving subscriptions of more than 100 times each, the highest such monthly tally since 2006.
Still, a crowded IPO calendar could make investors more selective. Lunawat said a mega-sized issue may temporarily affect smaller offerings that are competing for the same institutional money, but that should not be seen as a demand problem.
"I don’t see that as a lack of demand. I see it as a selective approach. Marquee companies can attract substantial capital, while smaller issuers will increasingly need to differentiate themselves through fundamentals, valuation and earnings visibility," he said.
Analysts also said investor demand remains strong, but not indiscriminate.
"Investors, especially retail, have gotten sharper over the past year. Listing day pops have come down compared to 2024, and people are no longer chasing every issue just because it’s open," said Rajesh Singla, CEO and Fund Manager, Alpha AMC & Planify.
For Jio and NSE, institutional demand is expected to be strong because of scale and brand recall, with retail interest likely to follow. But investors are expected to examine valuations closely before committing money.
"That’s actually a healthy sign. It means the market is maturing alongside the IPO boom, not just riding a wave," Singla said.
