New Delhi, Feb. 10 -- The Union Budget 2026, with its record Rs.12.2 trillion capex outlay and incentives such as tax credits and production-linked incentives (PLI) for sectors including railways, green energy, semiconductors, biopharma, and textiles, is likely to reshape IPO strategies of several private firms.

Companies looking to go public in FY27 are likely to pivot from debt repayment and high offer-for-sale (OFS) components towards increased greenfield capex in their fundraises, boosting fresh equity for factories, machinery and capacity expansion, multiple dealmakers told Mint.

"We anticipate 10-20% rise in capex allocation in DRHPs (draft red herring prospectus) for these sectors within Q1 FY27, as firms leverage tax credits and...