The Public Market Opens Its Doors: What a Record Year for IPOs Means for Founders

Headline and Overview

Kotak Neo, citing an NSE report and updated on 21 August 2026, said India's IPO fundraising reached a record Rs 1.8 lakh crore in FY26, from 219 companies. Of these, 108 mainboard IPOs raised about Rs 1.7 lakh crore, and 111 IPOs on the NSE Emerge platform for small and medium enterprises raised Rs 5,363 crore. A separate Free Press Journal headline from March 2026 put the mainboard record at Rs 1.65 lakh crore, a slightly different figure, probably reflecting a different cut-off date or definition. We use the NSE-based numbers and note the difference. Tracxn's annual report, covered in our FY26 piece, counted 47 IPOs by tech startups in FY26, up from 31, including Lenskart, Groww and Meesho.

Two routes: Mainboard vs. SME Emerge

The figures show two very different markets. The mainboard is where large companies raise thousands of crores. The Emerge platform and its BSE counterpart serve smaller firms, with 111 listings raising Rs 5,363 crore in the year, about Rs 48 crore on average (our calculation, from the totals). The first requires significant scale and governance. The second is more accessible, but the companies are smaller and less liquid.

“A listing opens the door to capital, and to a lifetime of explaining yourself.”

Should you list? Our framework

An IPO is a major decision. It brings capital, visibility and a currency for acquisitions, but also obligations. Consider these questions.

1. Do we need the money, and for what? Funds should have a clear use, such as expansion, debt reduction or acquisitions, and a return that justifies the cost. 2. Can we meet public-company standards? This means audited accounts, independent directors, regular disclosures and tight internal controls. Companies often underestimate the cost and discipline involved. 3. Is our track record strong enough? Investors look for growth and a path to profit. A company with losses and no clear route to break-even faces a harder reception, as the pause at Zepto in our Spotlight piece shows. 4. Are we ready for scrutiny? Quarterly results, analyst questions and media attention are constant. A founder who prefers quiet should think carefully. 5. What happens after listing? Share prices can fall below the issue price, and promoters may face lock-in periods. A listing is the start of a relationship with the market, not a finish line.

Specific cautions for SME listings

SME platforms have lower thresholds but bring risks of their own. Trading volumes may be thin, which makes it harder for investors to buy or sell. Small listed companies are also targets for promotional hype. Regulators have taken an interest in such issues, though we have not reviewed the specific rules here and do not describe them. A founder considering an SME listing should seek advice from a merchant banker and a lawyer, check the exchange's current eligibility criteria and be wary of anyone who promises a guaranteed listing price.

A readiness checklist: our framework

Three years of audited accounts that you understand. A board with independent members who actually challenge management. A finance team able to close the books quickly each quarter. Policies on related-party dealings and disclosure that you follow. A clear equity story that can be explained in two minutes. A realistic view of the costs of listing, including advisers, compliance and management time. If you can tick most of these, a conversation with a merchant banker is worthwhile. If not, use the next year to build them, whatever the state of the market.

Editorial analysis. IPO figures from Kotak Neo citing NSE; not investment advice.