Kotak Investment Banking (KIB) estimates that Indian initial public offerings (IPOs) will grow by 32% to reach $30.1 billion (Rs 2.5 lakh crore) in 2026, marking a new record. This optimistic forecast comes despite a slow beginning to the year for the IPO market. A significant portion of this growth, approximately one-third, is expected to come from large issuances exceeding $1 billion, with new-age technology and consumer sector companies likely to dominate.
The previous year, 2025, saw 13% growth in IPO issuances, totaling $22.7 billion (Rs 1.89 lakh crore). However, the overall equity capital market activity, which includes follow-on offers and qualified institutional placements (QIPs), experienced an 18% decline in 2025. This year, QIP issuances are projected to slightly increase to $10-$12 billion from $10 billion in 2025, as investor interest is expected to rise due to more attractive valuations closer to the ten-year average.
A key factor identified by KIB for the projected record-breaking year is the continued importance of domestic institutional investors, who subscribed to 60% of IPO anchor books in 2025. Additionally, 2025 saw significant block deals amounting to $25.2 billion (Rs 2.1 lakh crore), with 38% of these being sell-downs by multinational corporations. KIB also anticipates an increase in foreign investment in existing Indian assets, as companies aim to diversify and expand their offerings.
