India's IPO market was again one of the busiest in the world in FY26 with 366 companies in the mainboard and SME sectors raising around ₹1.9 lakh crore, according to Grant Thornton Bharat. Such fundraising is also indicative of the continued strength of India’s primary market, with investors more wary of valuations, earnings quality and post-listing performance.
The mainboard was a key source to record fundraising. Mainboard listings reached a record number of 109 IPOs, which raised around ₹1.77 lakh crore in the year. So existing companies continued to see India’s public markets as a promising source for growth, debt reduction and other corporate requirements.
But the strong fundraising numbers didn't necessarily translate to easy gains for investors. Listing gains and subscription levels moderated with respect to FY25, indicating that investors are becoming more valuation-conscious, the report said. Pricing discipline, earnings visibility, corporate governance and institutional involvement are more important in the success of an IPO.
Grant Thornton Bharat said the Indian IPO market is becoming more mature and investors are looking beyond the listing-day pop. Post-listing performance and the ability of companies to sustain investor confidence are now very important measures of IPO success. This shift might prompt prospective issuers to be more cognizant of business fundamentals, governance practices and financial transparency before approaching the public market.
The larger capital market also remained resilient despite geopolitical uncertainty and inflationary pressures. Strong domestic participation and an expanding investor base supported fundraising activity, but global developments, commodity prices and currency movements continued to influence market sentiment. New regulatory initiatives to promote transparency and accessibility as well as investor protection have also contributed to the growing IPO ecosystem.
In the future, the IPO pipeline of India is still healthy and this is based on domestic investor participation and long-term structural development in the economy. So, the experience of FY26 suggests that people are more likely to look at new IPOs and not just look for the most popular names. Companies with good fundamentals, solid revenues and earnings, good valuations and good IPO preparedness would be those who will be best positioned to succeed on public markets.
For retail investors, the record ₹1.9 lakh crore IPO fundraising is a sign of the expanding capital market in India and it also underscores the importance of looking at every IPO individually. A successful listing does not necessarily mean a good long-term investment, so valuation, business prospects, profitability, debt and management quality are factors to be looked at before subscribing.
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