The Indian stock market is poised to witness a transformative period in 2026, as a multitude of new-age companies prepare to make their public debut. These firms, which have evolved from nascent startups to industry giants over the past decade, are now ready to establish their presence in the capital markets. Prominent names such as PhonePe, Zepto, Oyo, Boat, Infra. Market, and Shadowfax are among those spearheading this 'Mahakumbh' (grand congregation), collectively aiming to raise an colossal sum exceeding 50,000 crore rupees through their Initial Public Offerings (IPOs). This move is expected to not only unlock new avenues for growth for these companies. But also present lucrative opportunities for public investors seeking to participate in India's burgeoning digital economy.
Growing Trend of Capital Mobilization
The Indian startup ecosystem has demonstrated a significant upward trend in mobilizing capital from the public markets over recent years. In the previous year, newly listed new-generation companies successfully raised approximately 36,000 crore rupees through their IPOs, while this process proved instrumental in enabling founders, early-stage investors, and employees to monetize their holdings and realize substantial gains. Companies like Ather Energy, Urban Company, Lenskart, Meesho, Groww, Physicswallah, and Pine Labs were key contributors to this trend, underscoring that public markets have become a viable and attractive exit route for these young, technology-driven businesses.
Positive Market Sentiment and Maturation
According to Ranvir Dawra, Co-Head of Investment Banking at HSBC India, the post-listing performance of new-generation companies that went public in 2025 has been notably strong, signaling strong returns for public market investors. This performance is a testament to the increasing maturity of the startup sector and a better understanding of these companies' business models by investors. Dawra further highlighted that several cohorts of companies listed in 2021, 2024, and 2025 have consistently shown strong financial performance post-listing, while these healthy reports are expected to play a crucial role in setting a positive market sentiment for the upcoming wave of IPOs.
Balanced IPO Pricing and Investor Confidence
Ranvir Dawra of HSBC also emphasized that IPO pricing has become more balanced, reflecting a better alignment between private market valuations and the attractive opportunities for public investors to participate in long-term growth. Institutional investors are closely monitoring broader macroeconomic factors to gauge market sentiment for these companies. This equilibrium ensures that IPOs not only raise capital at fair valuations for the companies but also offer investors a reasonable chance to benefit from future growth prospects, fostering a more sustainable investment environment.
Macro Factors and Market Momentum
A fund manager from a large Mumbai-based mutual fund indicated that the IPO market might gain momentum around March, following the February budget, but the intensity of activity will largely depend on broader macroeconomic factors. Investors are keenly observing potential US-India trade agreements, trends in oil prices, and any targeted budgetary measures. Plus, the timing of large IPOs, such as those from Reliance Jio and SBI Funds, will also be critical. Given their potential scale, these mega IPOs could absorb a significant amount of investor liquidity, potentially influencing capital flows into other primary market deals.
Strong Outlook for 2026
Gaurav Sood, MD and Head of Equity Capital Markets at Avendus Capital, affirmed that investor interest in new-generation companies remains strong. In 2025, this ecosystem accounted for approximately one-fourth of the total IPO fundraising. Sood noted that while investors initially sought safety margins given the evolving nature of these business models, improved profitability and clearer earnings projections have bolstered investor confidence, while the overall sentiment is positive but has become more selective, with the market shifting towards profitability. Investors are now more comfortable supporting specific, broader platforms that offer protection against margin erosion.
Several prominent startups have already begun filing their IPO plans confidentially. Quick commerce platform Zepto, for instance, filed its application confidentially in December, outlining a plan to raise up to 11,000 crore rupees in fresh capital, while zepto aims to list in the September quarter and is a key competitor in the 10-minute delivery market, vying with players like Blinkit and Swiggy's Instamart.
Oyo and PhonePe Prepare for Public Debut
Following Zepto, hospitality startup Oyo has also made its third attempt to go public, while it filed its application confidentially on December 31, seeking to raise 6,650 crore rupees in fresh capital. The company targets listing this year, while over the past two years, after being Importantly impacted by the COVID-19 pandemic, Oyo has reported improvements in revenue and profitability, becoming profitable for the first time in FY24 and maintaining profitability since then. Walmart-owned payments company PhonePe, which filed confidentially in September, is also. Preparing to go public with an IPO estimated between 13,000-14,000 crore rupees.
Value Appreciation and Exit Opportunities for Investors
The surge in listings over the past year accelerated the exit process, with approximately 18,000 crore rupees – or more than half of the total IPO proceeds – coming from Offers for Sale (OFS) by investors, early backers, and founders. Peak XV emerged as one of the largest beneficiaries, reducing its stakes in startups like Meesho, Groww, Wakefit, Capillary Technologies, and Pine Labs, which in turn appreciated the value of its remaining holdings as share prices rose post-listing. The Meesho and Lenskart IPOs similarly benefited Japanese investor SoftBank, whose portfolio company Oyo could potentially go public this year. Early-stage investor Accel saw Urban Company and Bluestone go public. Founders, senior management, and employees also benefited, as approximately 8,700 crore rupees, or about. $1 billion worth of employee stock option (ESOP) pools, were liquidated upon the companies' listings. HSBC India's Dawra noted that investor focus is expected to remain on large-scale IPOs, and with multiple companies from the same segment entering the market, the investment approach will become more systematic. In segments where listed companies already exist, the selection process is likely to be granular, based on the quality of founders and governance, stability in growth, clarity of cash flows, and a clear path to profitability.
