The IPO pipeline is expected to stay strong in the near term with $20 billion worth of IPOs in the next 12 months, according to Citigroup’s Head of Equity Capital Markets (ECM) Execution and Solutions for Asia Pacific Harish Raman. Fund raising from IPOs has already hit $14 billion this year and is estimated to cross $20 billion.
India ranks fourth in IPO volumes in 2025. US leads IPOs globally with about $53 billion raisings, Hong Kong is second with $23.4 billion and China third with $16.2 billion. The recent success success of three large issues including WeWork, Tata Capital and LG Electronics India augurs well for the primary market.
While WeWork shares listed flat on debut day, both Tata Capital and LG are awaiting listings next week. LG IPO received bids worth record Rs 4.4 lakh crore, 54 times the shares on offer.
A report from Bernstein’s Venugopal Garre and Nikhil Arela this month said investors are favouring fresh issues for short-term gains. Of the 161 IPOs listed since January 2024, the average listing gain was 22%. About half of these stocks turned negative after its listing.
While foreign investors (FPIs) pulled $18 billion from secondary markets, they invested $5 billion in IPOs. Both domestic and international companies, and sectors mainly technology, health care and consumer will drive IPOs next 12 months, said Raman.
“The bigger challenge for India is just the amount of supply that is coming,” Raman said. “There will be some calibration around valuation expectations.”
The fund raisings from IPOs in 2026, will well exceed the 2025 record, said several bankers recently. UBS, HSBC, ICICI Securities, JM Financial, SBI Capital Markets and Axis Capital said their pipelines are stronger than ever.
Apart from the mega-IPO of Reliance Jio, which could set new record on issuance size, asset manager ICICI Prudential, e-commerce firm Meesho are among notable IPOs in pipeline.
“Of course, the bedrock for all of this is: India is seen as a politically stable growth economy. In today’s world, compared to a lot of other countries, you can say that more confidently about India,” said Devarajan Nambakam, Senior MD & Co-COO at Goldman Sachs India in a report on IPO markets.