India’s capital market likely to witness Rs 4 lakh crore capital formation in 2026

India’s IPO landscape has evolved into a more resilient framework, establishing global leadership through deal volume. Projections suggest it will enable roughly ₹4 lakh crore in capital formation by 2026 according to recent analyses.

A Pantomath Capital report highlights how India’s equity markets matured significantly from 2020 to 2025, transitioning from cyclical fundraising to a robust platform for sustained capital growth.

The study emphasizes a pivotal shift in IPO activity post-2020, noting that mainboard offerings exceeded 100 listings in 2025—a milestone unseen since 2007. India dominated global IPO counts during this period while securing top-tier rankings for capital raised.

Diverse deal sizes demonstrated market depth, with particular momentum in the ₹100-500 crore and ₹1,000-2,000 crore segments. Both mainboard and SME listings expanded significantly, reflecting broader issuer engagement rather than sporadic activity.

“Current IPO dynamics underscore structural evolution, not temporary optimism,” stated Mahavir Lunawat, Managing Director at Pantomath Capital. “Parallel growth in transaction volume, deal size maturity, and investor discipline reflect a sustainable capital mobilization ecosystem.”

Lunawat added, “With regulatory enhancements progressing, domestic investor engagement and selective international inflows could propel IPO pipelines beyond ₹4 trillion in 2026.”

Investment participation expanded geographically, with Mumbai contributing approximately 37-38% of retail and HNI applications. Emerging interest emerged from Gujarat’s financial hubs—Ahmedabad, Surat, Rajkot, Bhavnagar and Mehsana—alongside growing contributions from non-metro regions including Bhilai, Kendrapara and Hisar.

Foreign portfolio investors maintained engagement throughout 2025, reinforcing market credibility through strategic participation in price discovery mechanisms.

(With inputs from IANS)