India’s potential IPO pipeline swells to Rs 3.86 lakh crore, 3.5 times funds raised so far in 2026: Report

India’s primary market is heading into the next phase of 2026 with a massive pipeline of potential IPOs. Mainboard IPOs worth around Rs 3.86 lakh crore are expected to hit the D-Street in the second half of the year, according to the Association of Investment Bankers of India (AIBI).

The pipeline is around 3.5 times the Rs 1.10 lakh crore raised through 84 mainboard IPOs so far this year, highlighting the depth of the fundraising opportunity ahead.

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AIBI, in its Mid-Term White Paper, said around 130 companies have already received approval from the Securities and Exchange Board of India (Sebi), while another 75 companies are at the Draft Red Herring Prospectus (DRHP) stage and awaiting approval.

The numbers point to sustained interest from companies looking to tap public markets, rather than an IPO cycle driven by a handful of large issuers.

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IPO market moves beyond fundraising

The pipeline includes around Rs 2.43 lakh crore worth of IPOs from companies that have received Sebi nod and another Rs 1.44 lakh crore from those awaiting clearance, according to AIBI.

Mahavir Lunawat, Chairman, AIBI, said, “India’s primary market has moved well beyond an episodic fundraising cycle. We have already seen Rs 1.10 lakh crore mobilised through 84 mainboard IPOs in 2026 YTD, taking cumulative mainboard fundraising since 2016 to Rs 8.36 lakh crore.”

He added that the size of the pipeline reflects stronger participation across investor categories and a broader role for the primary market in capital formation.

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The expansion has been building over the past decade. Mainboard IPOs have mobilised Rs 8.36 lakh crore between 2016 and 2026 YTD, while annual fundraising rose from Rs 26,494 crore in 2016 to Rs 1.76 lakh crore in 2025. The number of mainboard IPOs also increased from 26 in 2016 to 103 in 2025.

SME market and investor participation deepen

The growth is not limited to large companies. India’s SME IPO segment has also expanded sharply, with 267 issues in 2025 and another 156 in 2026 YTD.

Cumulative SME fundraising has reached Rs 39,849 crore between 2016 and 2026 YTD, while the average issue size has risen from Rs 8 crore in 2016 to Rs 45 crore in 2026 YTD.

The market’s supporting ecosystem has expanded alongside this activity. The number of registered merchant bankers has risen from 188 in September 2016 to 250 in September 2026.

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Investor participation has also remained broad-based. AIBI data shows average subscription levels of around 49 times among QIBs, 86 times among HNI investors and 26 times among retail investors in 2026 YTD, although subscription levels vary significantly across individual issues.

AIBI said the next phase will depend not simply on how many companies list, but on the quality of issuers, disclosures, institutional participation and how effectively capital is directed towards business expansion, infrastructure and long-term investment.

The Rs 3.86 lakh crore pipeline, it said, reflects a primary market increasingly evolving from an IPO-led fundraising avenue into a structural pillar of capital formation.

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