Mumbai: India’s primary market is gearing up for a major leap in capital mobilisation, with industry estimates indicating that IPO fund-raising could touch between ₹3.5 lakh crore and ₹4 lakh crore in the next year, almost double the amount raised in the previous year. The surge reflects the growing depth, stability and institutional maturity of the country’s capital markets.

The projection was shared by Mahavir Lunawat, who has been reappointed Chairman of the Association of Investment Bankers of India (AIBI), while addressing the association’s 14th annual convention here on Thursday. Lunawat said the IPO ecosystem is currently benefiting from a rare alignment of strong domestic liquidity, regulatory robustness and a steadily evolving investor base.

He pointed out that over the last decade, the number of IPOs in India has increased nearly thirteen times, underlining a structural shift in market participation. Domestic capital, powered by systematic investment plans of mutual funds, alternate investment funds, family offices and other long-term investors, has emerged as a key stabilising force, cushioning the market from fluctuations in foreign portfolio flows. Even so, Lunawat maintained that primary market fund mobilisation still has substantial headroom for growth.

AIBI, which today represents nearly 99 per cent of active merchant bankers by transaction volume, has evolved from a symbolic industry body into a full-fledged institutional platform. During Lunawat’s first term, the association introduced a detailed code of conduct, strengthened due diligence frameworks and standardised IPO documentation practices, pushing compliance beyond statutory norms towards process-driven best practices.

These reforms earned regulatory recognition, with the Securities and Exchange Board of India authorising AIBI to act as the first-level grievance redressal body for merchant bankers under the SCORES mechanism, reinforcing its institutional standing.

As Lunawat begins his second term, the focus is shifting from governance architecture to capacity building. AIBI plans to intensify investor awareness programmes aimed at simplifying IPO disclosures and encouraging long-term, fundamentals-based investing rather than short-term listing gains.

The association is also investing in human capital through a full-time residential MBA programme in investment banking, launched in partnership with Atlas University, to create a steady pipeline of trained professionals for the expanding primary market ecosystem.

Policy engagement will be another priority, with emphasis on widening the participation of domestic institutional investors across IPOs of all sizes. While the regulatory framework for IPOs is largely stable, industry leaders believe deeper and more consistent involvement by mutual funds, AIFs and family offices will further strengthen market resilience.

The IPO pipeline itself reflects the growing maturity of India’s markets. Issue sizes now span a wide range, from sub-₹500 crore offerings to multi-thousand-crore deals. Moreover, an increasing number of companies from Tier-II and Tier-III cities are tapping the capital markets, pointing to broader geographical reach and sectoral diversification.

Market participants say the next phase of India’s capital formation will be defined by institutional depth, informed participation and sustainable governance, setting the foundation for a more resilient and inclusive IPO ecosystem.