IPO 2026 Outlook: Indian Markets Set for a Strong IPO Boom — Zepto, OYO, PhonePe and Others to List

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.

Indian IPO Market to Gain Strong Momentum in 2026

New-Age Companies Ready to Enter Stock Markets

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.

Healthy Earnings Will Strengthen Market Sentiment

Strong Results Creating Investor Confidence

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.

Budget and Macro Factors to Influence IPO Surge

Activity Likely to Pick Up After Budget

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.

IPO Outlook 2026: Strong but Selective

Institutional Participation Rising

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

From PhonePe to Zepto: Big Names Preparing to List

Zepto Leads Quick-Commerce IPO Wave

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.

OYO Makes Another Attempt

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.

PhonePe Gears Up for a Major Listing

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.

Growing Value Creation for Investors

Strong Exits Through OFS

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.