India’s primary markets have recorded one of their strongest fundraising phases in recent years, with companies raising more than ₹90,000 crore through 61 IPOs over the past 90 days. However, while the fund-raising environment remains robust, post-listing performance has been far more subdued.
Strong fundraising, weak first-day gains
Trendlyne data shows that:
- 44 out of 61 IPOs delivered less than 10% listing gains
- 19 IPOs listed at flat or negative returns
- 26 companies (42%) are currently trading below their issue price
- The average return from issue price to date is about 11%, much lower than previous bullish cycles
This has occurred despite strong subscription levels across retail, HNI, and institutional categories.
Retail-heavy IPOs see the weakest performance
A notable trend is the underperformance of IPOs that witnessed heavy retail oversubscription:
- Dev Accelerator (164.7x retail subscription) is down ~30%
- VMS TMT (47x retail subscription) is down ~37%
- Solarworld Energy Solutions has declined more than 14%
- Regaal Resources is down 13.8%
- Highway Infrastructure (155x subscription) is also trading in the red
The data suggests that high retail enthusiasm has not translated into sustained price performance, especially in small and mid-cap offerings.
Stronger fundamentals show better resilience
Companies with clearer earnings visibility or stronger balance sheets have held their gains more effectively:
- Aditya Infotech is up ~149%
- Anand Rathi Share Stock has gained more than 80%
- PhysicsWallah is up 34%
- Groww is up 56%
- Epack Prefab has returned ~58%
- Lenskart and Pine Labs have posted modest but positive returns
These listings generally had more diversified investor demand and more stable operating fundamentals.
What the trend indicates
Analysts note that while companies continue to access capital markets with ease, the market is now more valuation-sensitive. The environment is less supportive of premium pricing for businesses with limited predictability in earnings or cash flows. Strong subscription does not automatically guarantee strong listing performance.
A powerful IPO pipeline ahead
Despite recent volatility in listing-day and post-listing returns, India’s broader IPO outlook remains highly active. According to estimates from Equirus Capital, as much as USD 20 billion may be raised in 2026.
Key expected issuers include:
- Jio
- NSE
- SBI Mutual Fund
- OYO
- PhonePe
- Flipkart
These potential listings span consumer technology, financial-market infrastructure, and digital payments — areas where institutional participation is typically strong.
The broader takeaway
India’s IPO cycle is expanding in depth and diversity, but investor behaviour is evolving. Markets are rewarding businesses with stronger fundamentals while becoming more selective about smaller and aggressively priced issues. For issuers, the environment underscores the need for realistic pricing and clear disclosures. For investors, it highlights the importance of evaluating business quality beyond subscription numbers.