Billion-Dollar-Plus IPOs Set to Drive Equity Market Fundraise: Kotak Investment Banking
India’s equity capital markets are positioned for a remarkable performance in calendar year 2026, with total issuance volumes anticipated to exceed ₹6 lakh crore. This surge will be fueled by a robust pipeline of initial public offerings (IPOs), qualified institutional placements (QIPs), block deals, and yield-oriented products, as outlined by Kotak Investment Banking.
Key Projections for 2026
– IPO Issuance: Approximately ₹2.5 lakh crore
– Dominated by new-age technology and consumer-facing companies.
– Robust Deal Environment:
– Kotak expects QIPs and block deals to remain strong, with increasing average deal sizes indicating a year filled with significant issuances.
– Market Sentiment:
– “A lot of billion-dollar-plus IPOs will occur, with large IPOs comprising around 35% of the total fundraise,” stated V Jayasankar, Managing Director at Kotak Mahindra Capital Company.
Performance Insights from 2025
– Mixed Results in CY25:
– Overall equity capital market volumes declined by 18% year-on-year to ₹5.1 lakh crore, down from ₹6.1 lakh crore in CY24.
– Nonetheless, IPO activity experienced a 13% increase, demonstrating resilience amid global volatility and a risk-off sentiment.
– Mergers and Acquisitions:
– Aiming for improvement, deal volumes in 2026 are projected to rise by 10-15%.
– Domestic Investor Engagement:
– Domestic institutional investors (DIIs) played a crucial role in absorbing nearly $19 billion in foreign outflows while attracting around $90 billion in inflows.
– DIIs accounted for nearly 60% of anchor book participation in public offerings in 2025, an increase from 40% the previous year.
Yield-Oriented Products
– Investment Trends:
– REITs and InvITs are expected to continue attracting significant capital, collectively raising about ₹28,000 crore in CY25. This growth is driven by favorable regulations and a preference for stable income amid declining interest rates and a sideways equity market.
Conclusion
The outlook for India’s equity capital markets in 2026 remains highly optimistic, driven by an influx of billion-dollar-plus IPOs and active participation from domestic investors. Kotak Investment Banking’s predictions highlight not only the resilience of the equity market but also the sustained interest in innovative financial products. As we approach this dynamic year, the landscape is set for transformative growth in the IPO sector and beyond.