India’s IPO market is gearing up for a powerful year in 2026, with several next-generation startups preparing to go public. From Zepto and OYO to PhonePe and Infra.Market, companies are planning to raise nearly ₹50,000 crore through fresh issues and OFS, signaling strong investor confidence and market maturity.
The year 2026 is expected to belong to startups in the Indian stock market. While Reliance Industries is likely to bring one of the country’s biggest IPOs, many next-generation companies — which began as startups over the past decade — are now ready to list.
Companies such as PhonePe, Zepto, OYO, Boat, Infra.Market, Shadowfax and others are preparing to raise around ₹50,000 crore through new equity issues and offers for sale (OFS).
In the previous year, newly listed new-age companies raised about ₹36,000 crore through IPOs. This helped founders, early investors, and employees unlock significant value. Companies like Ather Energy, Urban Company, Lenskart, Meesho, Groww, PhysicsWallah and Pine Labs were among those that benefitted.
HSBC India’s Co-Head of Investment Banking, Ranveer Dawda, noted that the performance of new-age companies listed in 2025 has been strong, signaling solid returns for public market investors — and building confidence in the ecosystem.
According to Ranveer Dawda, several companies listed in 2021, 2024 and 2025 have consistently delivered strong financial results after listing. Earnings calls by upcoming IPO candidates are expected to help shape investor sentiment for the next wave.
He added that IPO pricing has become more balanced, aligning better with private-market expectations while still offering attractive opportunities for long-term public investors. Institutional investors are closely tracking macro indicators to judge market appetite.
A fund manager at a leading Mumbai-based mutual fund expects IPO activity to accelerate around March, following the Union Budget. However, momentum will depend on broader macroeconomic conditions.
Key factors being monitored include:
a potential US-India trade agreement
oil price trends
budget provisions targeting key sectors
Large IPOs from Reliance Jio and SBI Funds may also play a critical role. Due to their size, they could absorb significant liquidity and influence capital availability for other public offerings.
Large domestic and foreign institutions continue to dominate IPO allocations. Participation from insurance companies and pension funds is also increasing.
Bigger free-float listings and post-IPO share sales are attracting emerging-market investors. According to Gaurav Sood, MD and Head of Equity Capital Markets at Avendus Capital, interest in new-generation companies remains strong, accounting for nearly one-fourth of total IPO fundraising in 2025.
However, he noted that the market has become more selective, with investors prioritizing:
profitability
governance quality
sustainable growth
clear cash-flow visibility
Quick-commerce platform Zepto filed confidentially in December and plans to raise up to ₹11,000 crore. Competing with Blinkit and Swiggy Instamart, Zepto is targeting a listing by the September quarter.
Hospitality startup OYO has once again filed confidentially, aiming to raise ₹6,650 crore. After pandemic challenges, the company reported profitability in FY24 and has continued improving performance since then.
Walmart-owned PhonePe is preparing for an IPO worth ₹13,000–14,000 crore, having filed confidentially in September. According to Ranveer Dawda, investor focus will likely stay on large, well-structured IPOs as more players from the same segments enter the market.
Last year saw a surge in exits, with approximately ₹18,000 crore — over half of total IPO proceeds — coming from OFS. Peak XV Partners benefited significantly by reducing stakes in companies like Meesho, Groww, Wakefit, Capillary Technologies and Pine Labs.
Meesho and Lenskart IPOs also delivered value for Japanese investor SoftBank, while OYO may add further gains if listed this year.
Founders, senior management, and employees collectively unlocked nearly ₹8,700 crore (about $1 billion) through ESOP conversions after listings.
Conclusion: A Promising — Yet Disciplined — IPO Year Ahead
With stronger profitability, improved governance standards, and rising institutional participation, India’s IPO market in 2026 appears optimistic. However, investors are now more selective, favoring sustainable businesses with clear profit pathways.