India IPO Market: Big Deals Ahead, Fewer IPOs

India's primary market is poised for a significant boost in 2026, thanks to a pipeline of large Initial Public Offerings (IPOs). Ranvir Davda, co-head of investment banking at HSBC India, anticipates that while the sheer number of IPOs may decrease, the overall value raised could mirror that of the preceding two exceptionally strong years. Major entities such as Reliance Industries' telecom arm Jio Platforms, the National Stock Exchange, Zepto, PhonePe, Manipal Hospitals, and SBI Funds Management are expected to list, collectively aiming to raise approximately ₹1 lakh crore. This projection follows two record-breaking years in 2024 and 2025, which saw a substantial number of mainboard IPOs and considerable capital infusion. However, the current year has experienced a slower pace due to geopolitical tensions impacting secondary markets and investor sentiment, prompting some companies to postpone their offerings. Davda notes that this year will be characterized by volatility, with shorter windows for executing trades, emphasizing the critical need for market readiness among issuers. Companies requiring capital are increasingly open to negotiation and exploring diverse funding avenues, including Alternative Investment Funds (AIFs) and family offices, alongside traditional investors, utilizing pre-IPO placements as a transitional capital-raising strategy. Technology sector IPOs are under heightened scrutiny due to AI advancements and global uncertainties, though significant consumer-tech and fintech offerings representing 'must-own' Indian market exposures are still anticipated.