The IPO market, which has remained hot in recent years with a record number of listings on Dalal Street, appears to have lost its momentum in 2026, as fresh listings have taken a pause, while companies that did make their debut witnessed lacklustre entries on the exchanges.
The weakness has extended to post-listing performance as well, turning what was once a dominant and high-traction primary market into a more subdued and cautious space.
So far in 2026, 32 companies across both the mainboard and SME segments have entered the Indian stock market following their fundraising program, according to Trendlyne.
This number is lower compared to the same period last year, when 50 companies made their debut. Notably, 11 stocks have listed at a discount, while five debuted at par with their IPO price.
Although 21 stocks have listed at a premium, only eight have listed with double-digit gains, a sharp drop compared to 18 stocks during the same period last year.
Between January and February 2025, six stocks were listed at a premium of 90%. However, that number has dropped to just two in 2026—Bharat Coking Coal and E to E Transportation—which debuted at 95.7% and 90% above their issue prices, respectively.
Meanwhile, IPO listing gains have been declining in recent years, even as a growing number of companies line up to list on the Indian stock market.
In 2024, the average listing gain stood at 49%. That figure dropped to 10.6% in 2025, despite a whopping 373 IPOs — comprising 103 mainboard and 270 SME issues — listing on exchanges.
In 2026, the average listing gain further declined to a single-digit figure of nearly 8%, the lowest since 2019, when it stood at 5.4%, according to Trendlyne data.
Is secondary market weakness dragging IPO listing gains?
The extreme volatility in the Indian stock market, which experts believe is impacting IPO listing performance, is prompting investors to adopt a selective approach rather than broad-based buying for IPOs. This trend is already evident in the subscription figures.
Seventeen out of 32 issues have received subscription levels below 10x, while even some of the most hyped IPOs, such as Shadowfax Technologies, received a subscription rate of just 2.3 times during the three-day bidding period.
Aye Finance, the biggest issue in terms of size, received a tepid response, as it was fully booked only on the final day of bidding, and it debuted on the exchanges at par with its IPO price.
Akshay Gupta, Director, Prime Securities Ltd., said, “While the primary market, of which IPOs are the main constituents, continues to remain robust, secondary markets influence post-listing stock movements. Persistent weakness in mid-cap and small-cap stocks in the secondary market has led to listing losses in most IPOs in 2026.”
Although the sample size is small- and the-time frame is not strictly comparable, 2025 IPO listing outcomes were significantly better than those in 2026.
That said, Gupta expects the Indian IPO market to maintain strong momentum, with larger, marquee names likely to raise funds more easily while commanding better listing prices. He also said the success of listing prices will depend on the intrinsic value of the company, the sustainability of profitable growth, and IPO valuations.
‘Quality over quantity’ will be the mantra going forward. A company’s scalability and fair valuations will be at the top of investors’ minds,” he added.
Are 2026 IPO investors sitting on deep losses?
While listings were subdued, post-listing gains have also been moderate, with 19 companies, or 59.4% of the 32 listed, trading below their issue prices, suggesting that a majority of early investors are sitting on losses.
Among the worst performers are Yajur Fibres, trading at a 70% discount to its IPO price, along with Aritas Vinyl, Arisinfra Solutions, Narmadesh Brass Industries, Victory Electric Vehicles, Armor Security, and Kanishk Aluminium, all down between 42% and 66% from their issue prices.
Even a big-ticket IPO, such as Fractal Analytics, is trading 9.4% below its offer price.
In contrast, 13 companies are trading with gains. Grover Jewels leads the pack, delivering robust returns, with shares trading 95% above the IPO price. KRM Ayurveda, Accretion Nutraveda, and Bharat Coking Coal are also trading 57%, 46%, and 45% higher than their issue prices, respectively.
Disclaimer: : The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
