2026 IPO Wave: Could This Be a Record-Breaking Year

Key Takeaways

• Global IPOs in 2025 totalled 1,293 listings, raising US $171.8 billion, a 39 per cent jump year-on-year.
• Asia-Pacific led in proceeds, while India ranked first in deal count, with 367 IPOs worth US $22.9 billion.
• The 2026 IPO wave is expected to bring a surge of AI- and technology-driven listings, featuring companies such as SpaceX, OpenAI, and Anthropic.
• Investors are becoming more selective, focusing on profitability, sustainable growth, and governance in a tight-liquidity environment.
• India’s IPO pipeline could exceed ₹ 2.65 lakh crore, making 2026 one of the most active years in recent history.

What Is an IPO and Why It Matters

An Initial Public Offering (IPO) is when a privately owned company offers its shares to the public for the first time and lists them on a stock exchange. It allows businesses to raise fresh capital, expand operations, repay debt, or fund innovation, while giving investors an opportunity to own a stake in their growth.

For investors, IPOs open the door to promising enterprises early in their journey. For markets, they signal confidence, liquidity, and risk appetite.
During stable economic periods, IPO activity tends to rise; when financial conditions tighten, companies and investors become more cautious, prioritising quality and fundamentals.

In 2026, IPOs have evolved beyond fundraising—they now reflect the health of capital markets and the changing behaviour of global investors navigating a more selective, liquidity-aware environment.

A Stronger Global IPO Market Setting the Stage for 2026

The global IPO market ended 2025 on solid footing. Confidence returned after two years of uncertainty, as monetary conditions stabilised and companies regained access to public capital.A total of 1,293 IPOs raised US$171.8 billion, reflecting a significant increase in proceeds from the previous year.

Activity accelerated in the final quarter, which became the strongest for global IPOs since 2021. Companies took advantage of a more predictable policy backdrop, moderate inflation, and steady investor sentiment.

This renewed optimism has carried into 2026. Market watchers believe the coming year will usher in one of the most important IPO cycles in over a decade. Major private players in technology and artificial intelligence are preparing to go public, while investors are balancing excitement with caution as liquidity conditions tighten.

Technology and AI-Driven Listings Lead the New Cycle

The defining trend for 2026 is the rise of AI-focused IPOs. Technology and industrials together accounted for over 40 per cent of global IPO proceeds in 2025, and this share could rise further.

Several high-profile technology giants are preparing public debuts, led by SpaceX, OpenAI, and Anthropic. Their listings are expected to attract global attention and billions in institutional capital. These companies symbolise a broader market shift: investors now prefer real growth backed by scalable revenue rather than speculative valuations.

Artificial intelligence, clean technology, and digital infrastructure are expected to remain at the heart of investor demand. However, capital will flow only toward businesses that can clearly demonstrate profitability, governance, and execution capability.

“2026 will favour companies that combine innovation with strong fundamentals and transparency,” noted one market strategist. “The era of growth without earnings is fading fast.”

Asia-Pacific Dominates Global Proceeds

Asia-Pacific Region

The Asia-Pacific region continued to lead the global IPO landscape, capturing the largest share of total proceeds in 2025. While deal counts stayed roughly flat, proceeds surged more than 100 per cent year-on-year.

Seven of the top ten IPOs worldwide originated from the region, driven by Hong Kong, Japan, and Mainland China. Japan recorded a 33 per cent increase in proceeds, proving investors’ appetite for larger and more stable companies.

Europe’s Structural Realignment

Europe saw a year of structural recalibration rather than weakness. Deal volumes fell 20 per cent, while proceeds slipped 10 per cent to about US$17 billion. Companies that did go public were stronger, more profitable, and more aligned with sustainability, AI adoption, and advanced manufacturing.

Ireland’s Access+ Milestone

Ireland celebrated a major achievement when Senus PLC became the first firm listed on Euronext Dublin’s Access+ market, a new platform designed for SMEs. This step marked the revival of Ireland’s domestic capital-raising ecosystem.

India’s IPO Boom Continues

India emerged as the most active IPO destination globally by deal count in 2025, with 367 IPOs raising US$22.9 billion. Robust domestic liquidity and vibrant participation from both institutional and retail investors made India a standout performer.

2025: A Record-Breaking Year

A total of 364 companies raised ₹1.95 lakh crore, up from ₹1.72 lakh crore in 2024. The top five IPOs were:

• Tata Capital – ₹15,511.87 crore
• HDB Financial Services – ₹12,500 crore
• LG Electronics India – ₹11,607 crore
• ICICI Prudential AMC – ₹10,602.65 crore
• Hexaware Technologies – ₹8,750 crore

September 2025 alone saw 25 companies raising ₹13,302 crore, the highest monthly tally since 1997.

2026: A Deep and Diversified Pipeline

For 2026, the pipeline remains exceptionally strong, with companies planning to raise more than ₹2.65 lakh crore. Major candidates include Reliance Jio Platforms, Flipkart, PhonePe, Zepto, OYO, and Infra.Market.
Analysts believe this could be India’s most influential IPO year ever, given its mix of mature corporations and tech-led startups.

“With strong domestic liquidity and sustained investor appetite, India’s primary market is positioned for another record-setting year,” said a senior analyst.

Investor Behaviour: Selectivity and Fundamentals Dominate

Tight liquidity across global markets has changed investor psychology. Central banks remain cautious on rate cuts, prompting investors to prioritise quality over momentum.

Institutional Strength

Institutional investors, particularly mutual funds and insurers, now account for 70 to 75 per cent of total IPO capital in India. Mutual funds have overtaken foreign investors as top anchor participants, subscribing to 14.44 per cent of the total issue size, compared to 13.99 per cent by foreign portfolio investors.

Smarter Retail Participation

Retail enthusiasm remains healthy but more measured. The average number of applications per IPO declined from 18.87 lakh in 2024 to 14.99 lakh in 2025. This shows a maturing investor base focused on sustainable value rather than short-term gains.

Post-Listing Reality

Average listing gains fell to 10 per cent in 2025, down from 30 per cent in 2024. Out of 102 tracked IPOs, only 54 remained above issue price by year-end. High pricing bands and Offer-for-Sale (OFS) structures were key reasons for this muted performance.

“The market is rewarding transparency, steady earnings, and realistic pricing,” explained a research head. “Overvalued issues rarely sustain their pop anymore.”

Reforms Strengthening Confidence

Several regulatory updates introduced in 2025 are helping streamline IPO processes and improve investor protection.
These include:

• Larger anchor book allocations for institutional stability
• Adjusted minimum public offer norms
• ESOP flexibility for startup promoters

Experts suggest further modern reforms such as faster, time-bound approvals, less repetitive documentation, and stronger accountability for lead managers. These changes will reduce uncertainty and boost confidence among both issuers and investors.

India’s Expanding 2026 IPO Pipeline

Over the next 18 months, more than 48 Indian startups spanning fintech, logistics, e-commerce, and enterprise technology are expected to go public. Names such as Zepto, OYO, Razorpay, InMobi, Fractal, Infra.Market, and Zetwerk headline the list.

Together, these companies could raise more than ₹50,000 crore, comfortably surpassing 2025 totals. Roughly 190 companies already hold or await SEBI approvals, targeting a combined ₹2.5–2.65 lakh crore.

This reflects growing confidence among private enterprises and a domestic investor base ready to support scalable, technology-led businesses.

Here Are the Most Watched IPOs to Look Out for in 2026

The upcoming year features several globally anticipated listings that could redefine investor interest in technology, infrastructure, and digital innovation.

1. SpaceX (United States)

Expected valuation: US$150 billion+.
SpaceX’s potential IPO is widely considered the biggest market event of 2026, reflecting massive demand for space-based internet and aerospace innovation.

2. OpenAI (United States)

Projected valuation: US$100 billion+.
The creator of ChatGPT may go public as one of the most influential AI companies globally, offering exposure to the expanding artificial-intelligence ecosystem.

3. Anthropic (United States)

Anticipated valuation: US$30–50 billion.
With its focus on safe and scalable AI models, Anthropic’s IPO could attract significant institutional investment.

4. Reliance Jio Platforms (India)

Estimated raise: US$4 billion+.
As India’s largest digital network, Jio’s listing is expected to be the country’s biggest ever, backed by strong fundamentals and profit growth.

5. Flipkart (India)

Expected valuation: US$60–70 billion.
The e-commerce leader’s long-awaited IPO could transform India’s consumer-internet landscape and attract large global funds.

6. PhonePe (India)

Estimated valuation: US$15 billion.
The digital-payments platform plans to go public as India’s fintech momentum continues to rise.

7. Zepto (India)

Valuation: US$3–4 billion.
The quick-commerce startup aims to capitalise on its rapid growth in ultra-fast delivery across major Indian cities.

8. OYO (India)

Valuation: US$8–10 billion.
OYO’s expected return to IPO markets will test investor confidence in travel tech and hospitality recovery.

9. InMobi (India)

Valuation: US$10 billion+.
InMobi’s offering will spotlight India’s growing strength in ad-tech and AI-driven marketing.

10. Infra.Market and Zetwerk (India)

Combined raise: ₹10,000 crore+.
These B2B industry leaders represent India’s industrial digitalisation wave and are set to attract strong institutional participation.

Lessons from 2025: Quality Over Quantity

The previous year taught several key lessons for issuers and investors:

• Companies with proven profitability outperformed those relying on future projections.
• IPOs dominated by OFS components provided weaker returns.
• Retail investors have grown more analytical and risk-aware.
• Domestic institutions are now the backbone of capital formation.

Almost half of 2025’s IPOs currently trade below their issue price, proving that discipline, transparency, and long-term fundamentals matter more than hype.

Analyst Consensus for 2026

Market analysts present a mixed but largely constructive outlook for the 2026 IPO cycle. While optimism dominates due to strong pipelines and investor liquidity, concerns about valuations and global volatility continue to shape sentiment. The following perspectives summarise the prevailing market views:

Positive Outlook

Analysts with a bullish stance expect 2026 to remain an active and rewarding year for IPO investors.
Key factors supporting this view include:

• A deep and diversified IPO pipeline across technology, fintech, and industrial sectors.
• Disciplined valuations that align with earnings visibility and realistic growth assumptions.
• Strong domestic liquidity, particularly from mutual funds, pension funds, and institutional investors.
• Healthy post-listing performance expected for companies with proven profitability and clear governance structures.

This group believes that a maturing investor base and improved market transparency will continue to attract both domestic and global participation, sustaining the growth momentum witnessed in 2025.

Cautious Outlook

A section of market experts urges caution, highlighting areas that could limit near-term returns.
Key risks include:

• Valuation excesses in select high-demand issues, especially in AI and tech-driven IPOs.
• High promoter and private-equity exits, which may reduce fresh capital inflows for growth.
• Aggressive pricing strategies that can cap listing gains and discourage retail investors.

Analysts in this group emphasise the need for realistic pricing, stronger regulatory oversight, and more balanced Offer-for-Sale (OFS) structures to protect long-term investor confidence.

Neutral Outlook

The neutral perspective suggests that while opportunities remain, the market could experience phases of moderation.
Key considerations include:

• Global macroeconomic volatility, such as rate adjustments and geopolitical shifts, which could affect liquidity.
• Execution delays in large or complex IPOs due to regulatory or valuation challenges.
• Policy transitions that may temporarily slow issuance momentum.

Despite these potential headwinds, analysts agree that India’s domestic resilience, steady institutional demand, and ongoing reforms will provide a strong base for stability and measured growth throughout 2026.

Investor Strategy for 2026

To navigate 2026 effectively, investors should focus on fundamentals and avoid speculative frenzy.

• Choose companies with steady revenue and transparent accounting.
• Prioritise sectors linked to AI, digital finance, infrastructure, and renewable energy.
• Stay alert to pricing discipline and avoid IPOs with heavy secondary sales.
• Track regulatory developments that may speed up or simplify listing timelines.

Long-term investors focusing on financial health and scalability are likely to outperform short-term speculators.

Outlook: A Smarter and More Disciplined Market

The year 2026 represents a turning point for global capital markets. The focus has shifted from aggressive valuations to disciplined growth.
AI-led companies, industrial innovators, and fintech leaders will define the next phase of listings.

With India at the centre of activity and Asia leading global capital formation, the 2026 IPO wave is not just about numbers but about maturity, quality, and long-term value creation.

This new chapter will shape a smarter, more transparent, and fundamentally stronger market where investors reward clarity, profitability, and vision.

Read here to learn more about ETF and Alternative Investment in 2026: Where Money Moves

Read here to learn more about Modern Portfolio Theory Basics Every Smart Investor Should Know