India's IPO boom to continue in 2026, says Goldman Sachs
19 Dec 2025

India's initial public offering (IPO) market is set for another record-breaking year in 2026.

Leading investment banks Kotak Mahindra Capital Company and Goldman Sachs Group Inc. predict that the country could raise up to $25 billion through IPOs next year.

This would be a nearly 14% increase from this year's figures.

JPMorgan Chase & Co. also expects the proceeds to remain above $20 billion for several years.

Primary market thrives on mutual funds, retail investor inflows
Market growth

The Indian primary market has witnessed tremendous growth in recent years, thanks to increased inflows from mutual funds (MFs) and retail investors. This trend is encouraging companies to consider going public.

The upcoming IPO pipeline for next year includes highly anticipated listings such as billionaire Mukesh Ambani's telecom firm Jio Platforms Ltd., and the National Stock Exchange (NSE), India's largest stock exchange.

Stock valuations and earnings recovery
Valuation trends

India's stock valuations are falling back to their five-year average, with the premium over global peers declining to a four-year low.

Earnings are also recovering, with MSCI India members expected to grow 15.9% in 2026, up from about 2% this year.

Despite these positive trends, around half of the 352 IPOs that debuted this year are trading below their offer price due to mixed deal quality in a crowded market.

Investor caution and potential trade deal delays
Market concerns

Investor caution has been prompted by concerns over the mispricing of some IPOs. Further, any delays in the India-US trade deal could impact market sentiment.

Despite these challenges, Sunil Khaitan of Goldman Sachs believes global funds underweight on India "may be compelled to return in size" as India's valuation premium to emerging markets falls.

He emphasized that there is not just supply but also good-quality supply.

Over 90 companies await regulatory approval for public issues
Upcoming listings

More than 90 companies have received the market regulator's nod for their public issues, while another similar number has filed draft documents and is awaiting regulatory clearance.

Among those likely to debut next year are Walmart Inc.-backed PhonePe Ltd., India's largest digital payments company, Temasek-backed hospital chain Manipal Hospitals Pvt., and delivery platform Zepto Ltd.

V Jayasankar of Kotak Mahindra Capital expects the momentum from 2024 and 2025 to continue with several billion-dollar-plus deals in the pipeline.