New Delhi [India], December 31 : India's equity capital markets are set to witness close to Rs 4 lakh crore in capital formation in 2026, marking a significant milestone in the country's financial evolution, according to Primary Pulse 2025, a report released by Pantomath Capital.
The findings point to a structurally stronger and more resilient IPO ecosystem, positioning India as a global leader in IPO deal volume.
The report highlights a sharp transformation between 2020 and 2025, as India's primary markets shifted from cyclical fund-raising to sustained capital mobilisation.
IPO fund-raising volumes have surged nearly twelve-fold over the past decade, supported by steady participation across both mainboard and SME segments. In 2025, mainboard IPOs crossed the 100-issue mark for the first time since 2007, underscoring the depth and continuity of issuance activity.
Unlike markets driven by a handful of large listings, India's IPO landscape has shown balanced growth across issue sizes, particularly in the Rs 100-500 crore and Rs 1,000-2,000 crore categories.
India also ranked among the top three global markets by IPO proceeds in calendar year 2025, reflecting its growing relevance in global capital flows.
Investor participation has broadened geographically, with tier-2 and tier-3 cities emerging as meaningful contributors alongside traditional hubs.
While Mumbai continues to dominate retail and HNI applications, centres in Gujarat and non-metro locations such as Bhilai, Kendrapara, and Hisar have gained prominence, signalling the democratisation of equity investing.
The report also notes a decisive shift toward productive use of capital. Over three-quarters of IPO proceeds were directed toward expansion, capacity creation, debt reduction, and working capital. Financial services led fund mobilisation, followed by manufacturing, industrials, consumer, and IT sectors aligned with long-term growth themes.
Institutional participation has matured as well, with mutual funds strengthening their role as selective anchor investors and foreign portfolio investors providing targeted support to disciplined price discovery. With regulatory reforms focused on governance and market stability, India's primary markets are increasingly positioned as a core engine for long-term economic growth.
"India's IPO market today reflects structural maturity rather than cyclical exuberance," said Mahavir Lunawat, CMD, Pantomath Capital.
"The simultaneous rise in issuance volumes, average deal sizes, and institutional discipline indicate a durable capital-raising framework. As regulatory guardrails strengthen further, the pipeline visibility is encouraging, we expect more than Rs 4 trillion worth of IPO pipeline in 2026, backed by strong domestic participation and selective global capital."