India’s capital markets are currently going through an important phase. Stability in the secondary market and a large supply in the primary market are together creating new momentum. In the past few years, the growing size of domestic mutual funds and retail participation have strengthened the equity culture, the impact of which is also visible in the IPO market.
In the first half of 2026, due to West Asia tensions and global uncertainty, companies had adopted a wait-and-watch approach. But the situation has changed since July-August.
Let us understand India’s IPO market boom in detail and know why companies are in a race to bring IPOs quickly.
What’s Happening?
After a slow start, mainboard IPOs have made a strong comeback. In July, about Rs 26,500 crore and in August, about Rs 29,000 crore were raised through mainboard IPOs. This is about 73% of the approximately Rs 75,518 crore raised so far in 2026. A major reason for this surge is the expiry of SEBI approvals. Usually, fundraising approvals are valid for 12 months. The approvals of many companies had become 8 to 10 months old. Companies like Symbiotec Pharmalab, Milky Mist and Shiprocket completed their issues in August.
SEBI had extended the validity of IPO and rights issue approvals expiring between April and September, which gave companies an additional window to raise funds. Improvement in market conditions has also been helpful. The Nifty 50 and Sensex had fallen by about 14% to their lows this year. Later, the market recovered by 10-11%, and by the beginning of August, the year-to-date decline had come down to about 5%. Due to this stability, the mainboard fundraising so far in 2026 has surpassed last year’s corresponding period figure of Rs 59,360 crore. In 2025, 103 companies had raised about $21 billion, and in 2024, 91 companies had raised $18 billion.
The Huge Size of the Pipeline and the Dominance of Mega Issues
According to Prime Database, India’s IPO pipeline has potential fundraising of about Rs 4.66 lakh crore. It includes 238 companies. Of these, 167 companies have valid SEBI approval, indicating potential fundraising of Rs 3,05,933 crore. Meanwhile, 71 companies are awaiting approval, with a potential issue size of Rs 1,59,680 crore. In this pipeline, 111 companies have not disclosed their issue size. For these, Rs 1,66,500 crore has been added based on an estimate of Rs 1,500 crore per company. This alone is more than one-third of the total pipeline.
Mega issues are at the forefront of the pipeline. Jio Platforms, with a Rs 37,700 crore potential issue, National Stock Exchange, with Rs 30,000 crore, and PhonePe, with a Rs 12,000 crore potential issue, are the prominent names. The three together make up about Rs 80,000 crore. Jio received SEBI approval on 28 August 2026.
Apart from these, large issues like Avaada Electro at Rs 7,600 crore, Prism at Rs 6,650 crore, Carlsberg India at Rs 6,300 crore and Zepto at Rs 5,106 crore are also in the pipeline.
Mainboard vs SME – Two Different Pictures
The surge is mainly in the mainboard segment, while the SME market is subdued. So far in 2026, 122 SME issues have raised about Rs 5,600 crore. Last year, about Rs 11,600 crore was raised from 267 issues.
SEBI has taken steps for investor protection on the SME platform, such as increasing the retail application size, stricter profitability norms and a longer promoter lock-in. The mainboard pipeline includes several sectors such as engineering, IT and software, housing, civil construction, real estate, electrical and electronics, and financial services. The disclosed proposed size of financial services alone is about Rs 71,200 crore.
What Does This Mean for Investors?
In September, IPOs worth Rs 20,000 crore to Rs 25,000 crore are expected. This will increase options for investors, but risk will also remain.
According to Mint, Gaurav Sood, MD of Avendus Capital, says that in the last two years, the number of issues larger than $200 million has increased fourfold. Issues of $200 million to $500 million are increasing rapidly, and acceptance for IPOs of more than $1 billion to $5 billion has also increased.
Investors should carefully read the red herring prospectus, compare valuations with sector peers and not chase grey market premiums or listing gains. It is also necessary to see whether the fundraising is for business growth or whether existing shareholders are exiting through an offer for sale.
What’s Next?
The future direction will depend on the stability of the secondary market. As mentioned in Mint, according to Pranav Haldea of Prime Database, the primary market always follows the secondary market. So far, 58 companies have raised Rs 73,757 crore, or about $8 billion. Of these, SBI Funds raised Rs 9,813 crore and Manipal Hospitals raised Rs 9,275.22 crore.
Avendus expects that by the end of the year, total IPO fundraising could exceed $20 billion. If the secondary market remains stable, a large part of the Rs 4.66 lakh crore IPO pipeline could convert into actual fundraising.
Disclaimer: This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The companies mentioned are cited as examples within the context of market developments. Investors are advised to conduct their own due diligence and consult their financial advisor before making any investment decisions.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing.
