Add thelocalreport.in As A Trusted Source
Gujarat has emerged as a strong non-metro cluster
Gujarat has emerged as the largest non-metro contributor to IPO demand. Cities like Ahmedabad, Surat, Rajkot, Bhavnagar, Mehsana and Gandhinagar are strongly involved in retail and HNI participation. Collectively, these cities account for a disproportionately high share of applications and collections, according to the report, highlighting broad-based investor participation in the state.
Mumbai remains the anchor city
Mumbai continues to dominate IPO participation with about 37% retail applications and 38% HNI applications. The city contributes about 36-39% of total collections in both segments, supported by the concentration of financial intermediaries, high net worth individuals and market-experienced retail investors.
Read also, Here are the biggest IPOs of 2025 and how they performed
Small towns exceed expectations
The report points to notable participation from smaller cities. Bhilai ranks second in retail applications with 9% share and its share in retail collections is 10%. Cities like Kendrapara and Hisar are also witnessing similar trends in the HNI segment, indicating increasing participation in IPOs beyond the major urban centres.
Apart from Mumbai, traditional metros like Delhi and Chennai do not emerge as clear leaders. Their share in applications and collections, especially in the retail sector, lags behind that of many smaller cities, suggesting a shift in IPO enthusiasm towards non-metropolitan areas.
While HNI participation remains led by Mumbai, demand is more evenly distributed across cities including Ahmedabad, Jaipur, Surat, Rajkot and Chennai, reflecting a more decentralized wealth participation pattern.
Comprehensive capital raising ecosystem takes shape
IPOs are increasingly being complemented by other means of raising funds, the report said. Qualified institutional placement has become the most frequently used non-IPO route, with issuance peaking at Rs 1.36 lakh crore across 95 issues in 2024. Rights issues remain episodic but high-value issuances, while follow-on public offers remain limited and opportunistic.
Outlook for 2026
According to the report, Indian capital markets are entering 2026 from a position of structural strength. In 2025, 373 IPOs, including 103 mainboard and 270 SME issues, raised approximately ₹1.95 trillion, placing India first globally in terms of the number of IPOs. While the issuance volume is expected to be moderate, activity is likely to remain high, supported by continued participation from non-metro cities and a diversified capital-raising framework.
It said the country’s capital markets are set to facilitate capital formation of approximately Rs 4 lakh crore in 2026, underscoring the growing depth, scale and maturity of India’s primary markets ecosystem.