India's equity capital markets are positioned for a historic milestone, with initial public offerings (IPOs) projected to cross the $20 billion threshold by the conclusion of 2026. This optimistic forecast stems from a combination of high-value primary issuances, a surge in secondary market trades, and a robust pipeline of upcoming transactions. According to Gaurav Sood, the Managing Director and Head of Equity Capital Markets at Avendus Capital, the momentum is being sustained by both domestic institutional appetite and the arrival of several mega-issuance companies that are expected to dominate the market share.
The current year has already seen significant activity, with 58 companies successfully raising approximately ₹73,757 crore (nearly $8 billion) to date. Leading the charge in the first half of the year were SBI Funds Management, which secured roughly ₹9,813 crore, and Manipal Hospitals, which raised about ₹9,275.22 crore. These figures underscore a broader trend of large-scale capital formation that began in previous years. In 2025, for instance, 103 companies raised a record $21 billion, following a strong 2024 where 91 entities garnered $18 billion.
- Mega-IPOs on the horizon — The market is bracing for massive listings from NSE and Jio Platforms, expected to raise about $3 billion and $3.8 billion to $4 billion respectively.
- Domestic fund participation — Local mutual funds are playing a stabilizing role, providing a consistent flow of capital even during periods of global volatility.
- Focus on profitability — Investors are increasingly favoring companies that demonstrate a clear trajectory toward sustainable earnings over pure growth stories.
Gaurav Sood noted that the public markets have staged a remarkable recovery over the last two months. This resurgence was catalyzed by successful recent listings such as Leap India, Dhoot Transmissions, and Milky Mist. The expert from Avendus Capital emphasized that the market is now better prepared for large-ticket offerings than in previous cycles. "Across the broader equity market, we are seeing strong activity in both primary issuances and secondary trades with an active pipeline of companies looking to tap the public markets over the next quarter," Sood stated.
One of the most striking shifts in the Indian financial landscape is the fourfold increase in companies opting for issue sizes exceeding $200 million. While the $200 million to $500 million bracket remains highly active, there is a growing acceptance among investors for massive offerings ranging from $1 billion to $5 billion. This evolution reflects a deepening of the domestic market and a higher propensity among retail and institutional investors to back newer business models that are transitioning toward profitability. The diversification of the investor base has allowed for larger liquidity pools, making these massive exits more feasible.
Avendus Capital itself is scaling up its operations to meet this rising demand. The firm’s equity capital markets franchise has overseen more than $12 billion in total transaction value across more than 50 deals in the last four years. Their portfolio includes high-profile names such as Lenskart, Firstcry, Swiggy, and ICICI Prudential AMC. To strengthen its position, the firm plans to expand its 10-member ECM team by adding several professionals over the next six months, specifically focusing on left-lead expertise to manage the entire underwriting and share issuance process for upcoming listings.
Beyond traditional equity, there is significant traction in specialized sectors like Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Avendus has provided advisory services for entities like Brookfield REIT and IndiGrid, highlighting a diversification of the Indian capital market. Gaurav Sood explained that many of these businesses are backed by private equity, leading to a natural churn in the cap table both before and after an IPO. This churn creates opportunities for secondary trades and block deals, which have become a staple of the current market environment, involving companies like Aditya Birla Capital and Syngene.
A key factor in the success of recent listings has been the pricing strategy adopted by issuers. There is a growing recognition that leaving money on the table for new shareholders is essential for long-term success. This approach ensures that investors enjoy an upside post-listing, which in turn builds trust in the primary market. "This has resulted in better-quality companies coming to the public markets at reasonable and attractive prices," Sood remarked, adding that the current crop of listing candidates possesses exceptionally strong fundamentals and transparent governance structures.
Looking ahead, the strategy of pursuing pre-IPO transactions is expected to gain further traction. These rounds allow early investors liquidity or secure growth capital ahead of listings.
