India’s IPO pipeline surges to ₹3.86 lakh crore as companies tap public markets

India's primary market is experiencing an unprecedented surge, with the mainboard IPO pipeline reaching a remarkable Rs 3.86 lakh crore, nearly three and a half times the Rs 1.10 lakh crore raised through 84 issues in 2026 so far, according to the Association of Investment Bankers of India (AIBI). This active pipeline includes around 130 companies that have received market regulator Securities and Exchange Board of India (SEBI) approval, while an additional 75 firms have filed Draft Red Herring Prospectuses and await regulatory clearance.

AIBI Chairman Mahavir Lunawat highlighted that the current pipeline, valued at Rs 2.43 lakh crore, and the 1.44 lakh crore from firms awaiting approval, signify a growing appetite among companies to tap public markets. The report, titled "India Capital Markets: Navigating Geopolitics, Capital & Growth," suggests that the primary market is evolving from an episodic fundraising cycle to a more substantial and sustained capital formation ecosystem.

Lunawat emphasized that the size of the current pipeline and the involvement of qualified institutional buyers, high-net-worth individuals, and retail investors indicate that the primary market is becoming a broader avenue for capital formation. The SME IPO segment has also seen a significant expansion, with 267 issues in 2025 and 156 issues reported in 2026 YTD, leading to cumulative SME fundraising of Rs 39,849 crore during 2016-2026 YTD.

The intermediary ecosystem has expanded as well, with the number of registered merchant bankers increasing from 188 in September 2016 to 250 in September 2026, marking a 33% rise.