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Report: Primary Pulse 2025, a research published by Pantomath Capital, projects that the capital formation of India’s equity capital markets would approach Rs 4 lakh crore in 2026, representing a major turning point in the nation’s financial development.

The results indicate a more robust and resilient IPO environment, making India a worldwide leader in the number of IPO deals.

According to the research, India’s key markets saw a significant transition from cyclical fund-raising to sustainable capital mobilization between 2020 and 2025.

Over the previous ten years, IPO fund-raising volumes have increased by over twelve times thanks to consistent involvement from both mainboard and SME sectors. For the first time since 2007, mainboard initial public offerings (IPOs) surpassed 100 issues in 2025, demonstrating the breadth and consistency of issuance activity.

India’s IPO environment has seen balanced development across issue sizes, especially in the Rs 100-500 crore and Rs 1,000-2,000 crore categories, in contrast to countries dominated by a few major listings.

India’s increasing importance in global capital flows is shown by the fact that it was among the top three worldwide markets by IPO proceeds in 2025.

Geographically, investor involvement has expanded, with tier-2 and tier-3 cities joining traditional hubs as significant donors.

The democratization of stock investment is shown by the rise in popularity of centers in Gujarat and non-metropolitan areas like Bhilai, Kendrapara, and Hisar, even if Mumbai still dominates retail and HNI applications.

A clear movement toward the efficient utilization of capital is also noted in the study. More than 75% of the IPO’s earnings went into working capital, growth, capacity building, and debt reduction. The manufacturing, industrial, consumer, and IT sectors that were in line with long-term growth themes came after financial services, which led the capital mobilization.

Additionally, institutional engagement has grown, with foreign portfolio investors offering focused support to disciplined price discovery and mutual funds solidifying their position as selected anchor investors. India’s main markets are becoming more and more positioned as a key driver of long-term economic development thanks to regulatory changes that prioritize market stability and governance.According to Mahavir Lunawat, CMD of Pantomath Capital, “India’s IPO market today reflects structural maturity rather than cyclical exuberance.”A robust framework for capital raising is shown by the concurrent increases in issuance volumes, average transaction sizes, and institutional discipline. We anticipate more than Rs 4 trillion worth of IPO pipeline in 2026, supported by robust local participation and selective foreign capital, as regulatory barriers continue to increase and pipeline visibility is positive.”