IPOs could raise up to $25 billion in 2026, too, despite D-St caution

Mumbai: A clutch of large IPOs is expected to prop up India's primary market in 2026 even as market uncertainty slows down broader activity compared to the previous two robust years, said Ranvir Davda, co-head of investment banking at HSBC India.

"The number of deals may come down, but the size and aggregate value may still be similar (to the previous years)," said Davda in an interview.

Reliance Industries' telecom arm Jio Platforms, National Stock Exchange, Zepto, PhonePe, Manipal Hospitals and and SBI Funds Management are among the large issuances expected to hit the market in 2026. Together, these issues could raise ₹1 lakh crore (about $10.8-10.9 billion).

So far this year, 20 companies have raised $2.5 billion, according to Prime Database and ETIG Database. That comes after two record years that saw 94 and 115 mainboard IPOs in 2024 and 2025, raising nearly $21-23 billion.

This year's IPO fundraise could be between $21 billion and $25 billion.

"This year, a larger percentage of companies are mid to large-sized," said Davda. "Many of these are backed by large groups or private equity investors and, therefore, have the flexibility to wait, ride volatility, and avoid pressing forward if valuations are not aligned."

The early part of this year has been slower for the IPO market, with the West Asia conflict weighing on secondary markets, IPO subscriptions and listing gains, prompting several companies to defer offerings.

"This year will be volatile. Windows to complete trades will be shorter, so readiness is critical," Davda said.

At the same time, companies that need capital are showing more willingness to negotiate.

Issuers are increasingly tapping AIFs, family offices and special situations funds alongside traditional investors, while using pre-IPO placements as a bridge to raise capital with visibility to a listing over the next 6-18 months, he said. According to Davda, technology faces sharper scrutiny amid AI disruption, global uncertainty and profitability concerns, though large consumer-tech and fintech offerings are still likely to proceed as "must-own" India exposures.