Goldman, JPMorgan expect India's record IPO boom to continue in 2026

Kotak Mahindra Capital Co and Goldman Sachs Group Inc expect next year's IPO fundraising to reach as much as $25 billion, representing an increase of roughly 14% from the current year's level

By Rajesh Mascarenhas and Baiju Kalesh

 

India’s proceeds from initial public offerings in 2026 may hit a record for a third year, with a strong pipeline and buoyant investor demand supporting momentum, according to top investment bankers.

 

Kotak Mahindra Capital Co. and Goldman Sachs Group Inc. expect next year’s IPO fundraising to reach as much as $25 billion, representing an increase of roughly 14 per cent from the current year’s level. JPMorgan Chase & Co. sees the proceeds staying above $20 billion for the next few years. The three banks together have nearly one-third of the market for such deals.

 

 

India’s primary market has surged over the past couple of years as surging inflows from mutual funds and retail investors encourage companies to seek listing. The appetite is growing and the pipeline for next year includes much-awaited offerings such as billionaire Mukesh Ambani’s telecom firm Jio Platforms Ltd. as well as the country’s largest bourse, the National Stock Exchange of India.

 

India is one of the few emerging markets offering strong growth, said Abhinav Bharti, head of India equity capital markets at JPMorgan, the biggest arranger of IPOs in the nation this year. “With relative valuations now at multi-year lows, foreign investors are likely to step up allocations in 2026,” he said. 

 

India’s stock valuations are falling back near their five-year average, with their premium over global peers dropping to the lowest level in four years. Earnings are recovering too, with MSCI India members projected to grow 15.9 per cent in 2026, up from about 2 per cent this year, according to data compiled by Bloomberg Intelligence.

 

That’s drawing attention from global investors who are looking for alternatives to China. India has emerged as the world’s fourth-busiest market for first-time share sales in 2025, with regulators taking steps to ease the approval process and household-name companies preparing to tap public markets. By deal count, India has outpaced global peers this year, even as its secondary markets lagged emerging-market counterparts by the most since 1993.

 

More than 90 companies have so far received the market regulator’s approval for their public issues, while a similar number have filed draft documents and are awaiting regulatory clearance. Walmart Inc.–backed PhonePe Ltd., the country’s leading digital payments provider, along with Temasek-backed hospital chain Manipal Hospitals Pvt. and delivery platform Zepto Ltd., are among the companies expected to debut next year.

 

“The momentum we saw in 2024 and 2025 will carry forward and we should see several billion-dollar-plus deals,” V Jayasankar, managing director at Kotak Mahindra Capital, said. “Digital and financial services are likely to remain the dominant sectors.”  

 

The exuberance, however, has been uneven. Around half of the 352 IPOs that debuted this year are trading below their offer price, reflecting mixed deal quality in a crowded market. Concerns have also been raised on mispricing of some IPOs, prompting investor caution. Going forward, any further delays in the India-US trade deal may weigh on sentiment.

 

With India’s valuation premium to emerging markets falling, global funds that remain underweight on the country “may be compelled to return in size,” said Sunil Khaitan, head of India financing group at Goldman Sachs. “It’s not just that there is supply — it’s good-quality supply.”