India’s initial public offering (IPO) market remained among the world’s most active in FY26 as 366 IPOs across mainboard and SME platforms raised approximately Rs 1.9 lakh crore, a report said on Monday.

"While capital formation remained robust, investor behaviour shifted towards greater selectivity, with governance standards, earnings visibility, pricing discipline and post-listing performance increasingly shaping investment decisions," said the report from Grant Thornton Bharat.

Mainboard listings reached an all‑time high of 109 IPOs that raised about Rs 1.77 lakh crore during the year.

Record fundraising activity coexisted with moderating listing gains, reflecting a market that is becoming more discerning and mature.

However, listing gains and oversubscription levels moderated from FY25 highs, reflecting a more valuation-conscious market where fundraising success was increasingly linked to pricing discipline, earnings quality and institutional participation.

“In today’s IPO market, success is no longer defined by the ability to list, but by the readiness to operate as a public company with the governance, discipline and credibility to sustain investor confidence well beyond the listing day,” said Karan Marwah, Partner and CFO Advisory Leader, Grant Thornton Bharat.

Despite geopolitical uncertainty and inflationary pressures, India's capital markets remained resilient, supported by strong domestic participation.

However, investor risk appetite became more measured, with market sentiment increasingly influenced by global developments, commodity prices and currency movements.

Recent regulatory reforms have focused on improving transparency, accessibility and investor protection across the IPO ecosystem, the report noted.

While macroeconomic conditions and global developments may continue to influence market activity, India's IPO pipeline remains healthy, supported by strong domestic participation, structural growth drivers and an expanding investor base.

The report forecasted that companies that combine strong fundamentals with robust IPO preparedness are likely to be best positioned to access public markets and sustain investor confidence beyond listing.