New Delhi, Dec 29 (IANS) India’s IPO market has entered a structurally stronger phase and emerged as the global leader by deal volume, poised to facilitate around Rs 4 lakh crore of capital formation in 2026, a report said on Monday.

The report from Pantomath Capital said India’s equity capital markets transformed in 5 years till 2025 from a largely cyclical fund‑raising avenue into a deeper, more resilient platform for capital formation.

The financial services firm noted a decisive inflection point for the IPO ecosystem after 2020, adding that mainboard IPOs surpassed 100 in 2025 for the first time since 2007.

India led the world in number of IPOs in CY25 while ranking among the top three markets for IPO proceeds. Unlike markets driven by a handful of mega listings, India’s IPO activity showed continuity across issue sizes, with strong growth in the Rs 100–500 crore and Rs 1,000–2,000 crore segments, the report said.

Issuance volumes rose sharply across mainboard and SME segments, signalling a shift from opportunistic listings to sustained capital mobilisation and broad‑based issuer participation.

“India’s IPO market today reflects structural maturity rather than cyclical exuberance. “The simultaneous rise in issuance volumes, average deal sizes, and institutional discipline indicate a durable capital-raising framework,” said Mahavir Lunawat, CMD, Pantomath Capital.

“As regulatory guardrails strengthen further, the pipeline visibility is encouraging, we expect over Rs 4 trillion worth of IPO pipeline in 2026, backed by strong domestic participation and selective global capital,” he added.

Investor participation deepened geographically across India, with Mumbai accounting for approximately 37 per cent and 38 per cent of retail and HNI applications.

Notable traction was seen from areas in Gujarat including Ahmedabad, Surat, Rajkot, Bhavnagar and Mehsana. The report noted widening participation from emerging non‑metro contributors such as Bhilai, Kendrapara and Hisar.

Foreign portfolio investors also continued to add global credibility in 2025 through targeted involvement, supporting disciplined price discovery, the report noted.

–IANS

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