India’s equity capital markets are expected to have a strong year in 2026, with total issuance volumes projected to cross ₹6 lakh crore, according to Kotak Investment Banking. The firm predicts that initial public offerings (IPOs) alone will reach ₹2.5 lakh crore, with new-age technology and consumer-facing companies leading the way. A significant portion of the fundraising, around 35%, is expected to come from large IPOs worth over $1 billion. This is consistent with the trend seen in the previous year, where new-age companies dominated the market.
Despite a mixed year for equity capital markets in 2025, with overall ECM volumes falling 18% year-on-year, IPO activity grew 13% amidst global volatility. Mergers and acquisitions activity is also expected to improve, with deal volumes projected to rise 10-15% in 2026. Domestic institutional investors (DIIs) are expected to remain the primary drivers of ECM activity, having played a crucial role in absorbing foreign outflows of nearly $19 billion in 2025.
Yield-oriented products, such as real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), are expected to continue attracting capital in 2026. These products raised around ₹28,000 crore in 2025, aided by favorable regulations and investor preference for stable income. Qualified institutional placements (QIPs) and block deals are also expected to remain robust, with rising average deal sizes indicating a year of mega issuances.
The outlook for 2026 is positive, with Kotak Investment Banking’s managing director, V Jayasankar, stating that “a lot of billion-dollar-plus IPOs will happen” and that new-age companies will continue to be at the forefront of fundraising. The firm’s predictions are based on a deep pipeline of IPOs, QIPs, block deals, and yield-oriented products, and suggest that India’s equity capital markets are set for another strong year. Overall, the expected growth in ECM activity is a positive sign for the Indian economy, indicating increased investor confidence and a strong pipeline of fundraising opportunities.