Speaking to ET Now, Goel said the investment banking landscape remains buoyant despite recent market volatility.
170+ IPO documents filed with SEBI
After witnessing 103 mainboard IPOs in 2025, India’s equity capital markets (ECM) are entering 2026 with strong momentum.
Key highlights:
- Over 170 draft documents filed with Securities and Exchange Board of India (SEBI).
- Nearly $20 billion raised through IPOs last year.
- Fundraising expected to surpass that level in 2026.
While the first few months have been relatively subdued due to geopolitical and tariff uncertainties, Goel expects activity to pick up sharply in the coming quarters.
IPO activity can be lumpy
Historical trends suggest that primary market momentum often builds through the year.
In 2025:
- Q1 saw 9 IPOs
- Q2 saw 9 IPOs
- Q3 surged to 46 IPOs
- Q4 delivered 30+ IPOs
“Activity tends to be lumpy,” Goel noted, adding that once volatility eases, IPO issuance could accelerate meaningfully.
Valuations more realistic than post-Covid peak
Goel said the post-pandemic era of ultra-low cost of capital led to elevated valuations. However, the market has since seen moderation.
Today’s environment reflects:
More disciplined pricing.
Focus on building a strong long-term investor base.
Recognition that IPOs are not a one-time valuation event but a starting point for sustained performance.
“Companies are now prioritising investor quality over maximising listing-day valuation,” he said.
New-age companies to lead listings
Over the next 12–18 months, Goel expects 30–40 listings from new-age sectors, contributing significantly to supply in the public markets.
However, he emphasised that investor appetite remains broad-based.
Rather than favouring one sector, investors are evaluating companies on:
- Growth visibility
- Governance standards
- Sustainable business models
“As long as the right mix of growth and governance exists, capital is available,” he said.
Private equity dry powder at lifetime highs
Beyond public markets, private equity activity is also set to strengthen.
Goel pointed out that:
- India-dedicated PE funds have raised significant capital in the last 18 months.
- Dry powder levels are near record highs.
- Some IPO candidates may opt for private equity funding instead.
- He expects deployment momentum to rise in the coming quarters.
Promoters more open to strategic deals
Another emerging trend is increasing openness among promoters toward consolidation and strategic dilution.
“Big is beautiful,” Goel said, noting that next-generation business leaders are more receptive to mergers, stake sales, and value-unlocking transactions.
Selling businesses — once considered taboo — is increasingly being viewed as a strategic decision rather than a sign of weakness.
Strong ECM cycle ahead
With a robust IPO pipeline, elevated PE dry powder, and a more mature approach to valuations, India’s fundraising ecosystem appears well positioned for sustained growth in 2026.
If geopolitical uncertainties stabilise, the coming quarters could see a surge in listings — potentially pushing annual fundraising beyond last year’s $20 billion milestone.