India's initial public offering market is on track to hit new highs in 2026, according to a senior banker at Kotak Investment Banking. V Jayasankar, the firm's Managing Director and Deputy CEO, forecasts a rebound after a lackluster first half, with fundraising activity set to accelerate.
Robust deal filings and improving valuations form the backbone of this optimistic outlook. Resilient domestic inflows and positive post-listing returns are also providing critical support, creating a favorable environment for issuers despite broader economic headwinds.
The projection comes with caveats. Kotak acknowledges that persistent inflation, geopolitical tensions, and even adverse weather patterns pose risks that could dampen the expected surge. These factors introduce uncertainty into what otherwise appears to be a strong pipeline.
Jayasankar shared these insights in an interview with Bloomberg Television, emphasizing that the momentum is being driven by structural factors within India's equity markets. The sheer volume of filings suggests that companies are eager to tap public markets.
If the forecast holds, 2026 would surpass previous records for IPO activity in India. Investors and bankers alike will be watching key macroeconomic indicators and IPO performance closely in the coming months.