Primary Market Pipeline Expands in 2026
Mumbai: The Association of Investment Bankers of India (AIBI) released its Mid-Term White Paper, titled "India Capital Markets: Navigating Geopolitics, Capital & Growth," on Thursday, highlighting a significant expansion in the country's primary equity markets.
According to data presented by the apex body representing India’s investment banking industry, the mainboard initial public offering (IPO) pipeline reached approximately ₹3.86 lakh crore as of September 2026. This figure represents the total value of issues currently in various stages of regulatory approval or preparation.
The white paper noted that around 3.5 times this amount, or ₹1.10 lakh crore, has already been raised through 84 mainboard IPOs completed in 2026 year-to-date (YTD). The scale of the remaining pipeline indicates sustained issuer interest in public markets and provides visibility into the potential depth of India’s primary market beyond the capital already mobilized this year.
The composition of the ₹3.86 lakh crore pipeline includes approximately ₹2.43 lakh crore from companies that have received approval from the Securities and Exchange Board of India (SEBI). The remaining ₹1.44 lakh crore consists of issues from companies that have filed Draft Red Herring Prospectuses (DRHPs) and are awaiting regulatory clearance.
AIBI Chairman Mahavir Lunawat stated that approximately 130 companies have received SEBI approval for mainboard IPOs, while another ~75 companies are at the DRHP stage. These figures underscore a structural shift in the market, moving beyond episodic listing cycles toward a more sustained capital formation ecosystem.
Decade-Long Growth in Fundraising and Listings
The surge in 2026 activity is part of a broader decade-long trajectory that has fundamentally altered the scale of India’s primary markets. Cumulative mainboard fundraising from 2016 to 2026 YTD has reached ₹8.36 lakh crore, reflecting a massive accumulation of capital over the last ten years.
Annual mainboard fundraising has risen dramatically during this period, climbing from ₹26,494 crore in 2016 to ₹1.76 lakh crore in 2025. This growth in volume is mirrored by an increase in the number of listings; the number of mainboard IPOs increased from 26 in 2016 to 103 in 2025, with 84 occurring in 2026 YTD alone.
Parallel Growth in SME Ecosystem and Intermediaries
Beyond the mainboard segment, India’s Small and Medium Enterprise (SME) IPO ecosystem has also experienced substantial expansion. The sector saw 267 issues in 2025 and 156 issues in 2026 YTD. Cumulative SME fundraising reached ₹39,849 crore over the period from 2016 to 2026 YTD.
The average size of these SME issues has also grown significantly, increasing from ₹8 crore in 2016 to ₹45 crore in 2026 YTD. This scaling up of issue sizes suggests a maturation in the quality and scale of smaller enterprises seeking public capital.
Supporting this expanded market activity is a growing network of financial intermediaries. The number of registered merchant bankers grew from 188 in September 2016 to 250 in September 2026, representing an increase of approximately 33%. This growth in intermediary capacity aligns with the heightened demand for underwriting and advisory services across both mainboard and SME segments.