Goldman, JPMorgan see D-Street’s record IPO boom extending to 2026

Core Insights - India's primary market has experienced significant growth, driven by strong inflows from mutual funds and retail investors, making it an attractive option for global investors seeking alternatives to China [1][5][9] - The IPO fundraising in India is projected to reach up to $25 billion in 2026, marking a 14% increase from the current year's level, with a robust pipeline of upcoming offerings [6][9][10] - Despite the growth, approximately half of the 352 IPOs launched this year are trading below their offer price, indicating mixed deal quality and prompting investor caution [8][10] Market Dynamics - India has become the world's fourth-busiest market for first-time share sales in 2025, with regulatory measures in place to streamline the approval process for public listings [5][9] - More than 90 companies have received regulatory approval for public issues, with a similar number awaiting clearance, indicating a strong interest in market participation [6][10] - The sectors of digital and financial services are expected to dominate future IPOs, with significant deals anticipated [6][10] Valuation and Investor Sentiment - India's stock valuations are nearing their five-year average, with the premium over global peers at its lowest in four years, which may attract foreign investors [9][10] - Earnings for MSCI India members are projected to grow by 15.9% in 2026, a significant increase from approximately 2% this year, reflecting a recovery in corporate performance [9] - Concerns regarding the mispricing of some IPOs and potential delays in the India-US trade deal may affect market sentiment moving forward [8][10]