India tops world in IPO count, ranks third in fundraising in FY26: SEBI Annual Report
New Delhi, August 6
India retained its position as the world's leading market for initial public offerings by number of issues during FY2025-26, while ranking third globally in terms of funds raised, according to the Securities and Exchange Board of India's Annual Report for 2025-26.
Highlighting the country's strong primary market activity, SEBI said the equity market continued to witness robust momentum during the year despite global uncertainties marked by geopolitical conflicts, trade tensions, volatile capital flows and rapid technological changes.
"The primary equity market demonstrated continued dynamism, with India ranking first globally in the number of IPOs and third in terms of fund raised," SEBI Chairman Tuhin Kanta Pandey said in his statement in the report.
To sustain this momentum, the market regulator said it introduced several reforms aimed at making capital raising easier while maintaining investor protection.
Among the key measures, SEBI restructured the minimum public offer framework by linking public float requirements to issue size. It also extended the timeline for the largest listed companies to achieve the mandatory 25 per cent minimum public shareholding to 10 years, enabling large enterprises to access public markets without facing frequent dilution after listing.
The regulator further allowed founders of new-age companies to retain employee stock option plans (ESOPs) granted before an IPO, saying the move would preserve long-term incentives while ensuring transparency for public shareholders.
In his message, Pandey said India's capital markets remained resilient during one of the most challenging years in recent times, demonstrating their ability to function efficiently despite global geopolitical conflicts, trade wars and volatile asset prices.
He said SEBI's regulatory approach had shifted towards building "resilience by design" by embedding structural integrity through optimum regulation and AI-driven oversight while simplifying compliance for market participants.
The Chairman noted that India would require significantly larger pools of capital to finance its long-term development goals, including infrastructure, manufacturing and the energy transition, adding that these investments could not be funded by the banking system alone.
According to the report, SEBI's policy focus during the year was to strengthen the equity market, corporate bond market and alternative investment ecosystem so that they complement traditional sources of financing and support India's journey towards becoming a developed economy by 2047.
— ANI
Reader Comments
This is fantastic news! 🇮🇳 The startup ecosystem is booming, and allowing founders to retain ESOPs post-IPO is a smart move. It keeps the original team motivated and aligned with long-term growth. Proud of our capital markets!
The 'resilience by design' approach is exactly what we need in these volatile times. AI-driven oversight is the future. But let's not forget that many small investors lost money in recent IPOs—we need better investor education, not just more listings.
As an international investor, I see huge potential in Indian markets. The reforms around public float requirements and ESOPs show SEBI is adapting to modern business models. The 2047 vision is ambitious, but definitely achievable with continued transparency and good regulation.
One must appreciate the balanced approach. Allowing public float requirements to scale with issue size is wise. But the 10-year extension for MPS compliance is a long time; hope it's not misused by large corporates to delay accountability.
Truly remarkable that India is leading globally despite geopolitical tensions! Our financial system is maturing. SEBI's push for corporate bond and AIF ecosystems is exactly what we need. The banks alone can't fund Viksit Bharat—capital markets must step up. 🚀
M We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.