India’s equity capital markets are witnessing a revival, with around a dozen companies expected to raise more than ₹600 billion ($6.3 billion) through initial public offerings, institutional placements and stake sales over the next two months.
The surge in activity marks one of the busiest periods for equity issuance this year and comes after a relatively slow start to 2026, when weak stock market performance made companies more cautious about tapping investors.
Another sign of the improving deal environment is Zepto Ltd.’s updated IPO filing for a proposed $1 billion offering. The National Stock Exchange of India Ltd. (NSE) is also said to be preparing a filing that could raise about $2.5 billion.
IPO Market Yet To Match Previous Years
Companies have raised about $3.5 billion through IPOs so far in 2026, well below the levels seen in the previous two years.
IPO proceeds had exceeded $20 billion in each of those years.
According to Samarth Jagnani, Head of Global Capital Markets for India and Southeast Asia at Morgan Stanley, the pace of issuance reflects healthy participation across investor categories.
“This sustained pace of issuance indicates healthy underlying liquidity and participation across domestic institutions, foreign investors and retail segments,” Jagnani said.
The supply of shares could increase further as lock-in periods expire for more than 50 listed companies over the next two months.
According to data compiled by Nuvama Wealth Management Ltd., shares worth more than ₹800 billion ($8.4 billion) could become eligible for sale by founders and early investors.
Not all of those shares are expected to come to market, but the expiry of lock-up periods has raised concerns over a potential supply overhang.
Bankers Remain Optimistic
Despite the crowded issuance calendar, investment bankers believe liquidity remains adequate.
“We do not see the current pipeline materially stretching liquidity, particularly if issuance is from fundamentally strong companies,” Jagnani said.
Large Deals In The Pipeline
Several sizeable transactions are expected in the coming months.
Among them:
- SBI Funds Management Ltd. is expected to seek around ₹130 billion
- The Centre is preparing to sell a 2% stake in Life Insurance Corporation of India (LIC), which could raise about ₹100 billion
- Waaree Energies Ltd. is considering a share sale of around ₹70 billion
- JSW Infrastructure Ltd. is evaluating an issue worth nearly ₹75 billion
Strong IPO Pipeline Remains Intact
India continues to rank among the world’s most active primary markets.
According to Prime Database:
- 163 companies have received approval from the Securities and Exchange Board of India (SEBI) to launch IPOs
- Another 62 companies have filed draft papers and are awaiting regulatory clearance
The performance of upcoming deals will be closely watched to gauge whether investor demand can absorb the growing supply without affecting broader market valuations.
Concerns Over Liquidity Stretch
Some market participants believe simultaneous large offerings could test investor appetite.
“The risk of liquidity stretch is not insignificant, particularly if multiple large deals hit the market at the same time,” said Sachin Relekar, Senior Equity Fund Manager at Axis Mutual Fund.
“In such a scenario, we could see pressure on secondary-market liquidity, especially in mid- and small-cap stocks,” he added.
TL;DR
India is heading into one of its busiest periods for equity fundraising in 2026, with companies expected to raise more than $6.3 billion over the next two months. Bankers remain optimistic, though some investors warn that multiple large deals could strain market liquidity.
AI summary
- About $6.3 billion of share sales are expected in India over the next two months.
- Zepto and NSE are among companies preparing large IPOs.
- More than $8.4 billion worth of shares could become available after lock-in expiries.
- India has 163 SEBI-approved IPO candidates and 62 awaiting approval.
- Investors caution that simultaneous large offerings could pressure liquidity.
