India Eyes Record Third Year of Robust IPOs

India is on track for an unprecedented third consecutive year of robust initial public offerings (IPOs), potentially setting a new national record, according to Kamlesh Chandra Varshney, a whole-time member at the Securities and Exchange Board of India (SEBI). This sustained boom marks a significant achievement in the country's capital market history.

IPO Momentum Continues

The data supports Varshney's optimistic outlook. As of December in the current fiscal year 2026 (FY26), 413 companies have successfully raised ₹2.14 lakh crore through IPOs. This figure already surpasses the ₹2.08 lakh crore garnered in the entirety of the previous fiscal year and significantly outpaces the ₹83,000 crore raised in FY24. Varshney expects the total raised by the end of March FY26 to exceed last year's impressive tally, citing substantial interest from various corporations eager to go public.

SEBI has been actively processing these applications, issuing 157 observation letters between April 2024 and December 2025. Currently, as of December 31, 2025, 98 offer documents remain under review, representing a pipeline of nearly ₹95,000 crore in potential capital infusions.

Post-Listing Performance Shows Strength

Beyond the fundraising volume, the performance of newly listed stocks is crucial for investor sentiment. Varshney pointed out that from April to October this year, the post-listing performance of IPO stocks has remained strong. Mainboard IPOs collectively delivered gains of 22% over their total issue size during this seven-month period.

Looking at the initial listing day performance for the 72 mainboard IPOs during April-October, a notable portion showed significant returns. Five IPOs surged by more than 50% on their listing day, while six saw gains between 20-50%, and 18 others offered returns of 10-20%. A further 29 IPOs provided returns within the 0-10% range. While 14 stocks experienced negative returns on listing day, the overall trend points to healthy investor appetite. Examining the returns accumulated until the present date, 6 companies have risen over 50%, 21 have gained between 20-50%, and 10 more are up 10-20%. The number of companies with negative returns has increased to 27, indicating a mixed longer-term performance for some, but the headline figures remain positive.

Regulatory Reforms Underway

In parallel with market activity, SEBI is working on significant structural reforms. The proposed Security Markets Code has been tabled in Parliament and is currently with the standing committee of finance for recommendations. Varshney expressed confidence that the code will be enacted, enabling SEBI to delegate certain regulatory functions to market infrastructure institutions and self-regulating organizations. This move aims to streamline regulation and leverage external expertise to support SEBI's oversight responsibilities, ensuring efficiency and scalability.

The consolidated code seeks to rationalize and integrate provisions from key legislation, including the SEBI Act, 1992, the Depositories Act, 1996, the Securities Contracts (Regulation) Act, 1956, and the Government Securities Act, 2007, into a single, comprehensive framework.