Surge in IPOs and M&A: A Financial Transformation in India

Kotak Investment Banking projects a 32% growth in IPOs, reaching Rs 2.50 lakh crore this year, driven by large issuances. Despite active markets, overall equity capital market activity declined. Domestic institutional investors remain crucial, as foreign investors show increased interest in mergers and acquisitions.

Kotak Investment Banking (KIB) forecasted a significant rise in initial public offerings (IPOs), estimating a 32% growth to reach Rs 2.50 lakh crore this year, primarily fueled by large issuances exceeding USD 1 billion.

While 2025 witnessed a 13% increase in IPOs to Rs 1.89 lakh crore, overall equity capital markets activity saw an 18% decline to Rs 5.1 lakh crore, factoring in follow-on offers, bulk deals, and qualified institutional placements.

Despite the concerns over predominantly offer-for-sale IPOs in 2025, KIB anticipates a modest rise in qualified institutional placements to USD 10-12 billion in 2026, with domestic institutional investors and foreign investment continuing to play pivotal roles.

(With inputs from agencies.)