Although the Indian stock market witnessed sharp volatility amid geopolitical and trade worries, the IPO market maintained its momentum, with over 350 stocks debuting on Dalal Street since the last Union Budget. The majority of these listings came from the SME segment, driven by strong participation from retail investors.
Companies ranging from tech startups and fintech firms to renewable energy businesses have tapped the capital markets to expand the scale of their operations. Apart from sustained retail interest in IPOs, stock market volatility has also pushed FPIs towards fresh issues, making IPOs one of their preferred investment avenues.
As a result, most issues have seen strong investor response, even as some big-ticket IPOs—which typically struggle to attract demand in volatile markets—have witnessed robust subscriptions, flipping the usual script.
SME IPOs dominate listings
According to Trendlyne data, 366 companies have successfully listed on stock exchanges following fundraising activity. Notably, 263 stocks, or 72% of total listings, came from the SME segment.
A majority of SME issues received a strong response from the Street, with several offerings witnessing subscription levels exceeding 100 times, despite market regulator SEBI tightening norms for SME IPOs. Robust participation from retail investors in these issues was largely driven by expectations of multibagger returns on listing day.
While a few stocks managed to exceed expectations, most listings eventually eroded investor wealth, highlighting a growing divergence between subscription hype and post-listing performance.
The Economic Survey 2025–26 said that India’s primary market remained resilient and vibrant, leading the world in IPO issuances in FY26. The report noted that this strong performance was underpinned by sound macroeconomic fundamentals, robust investor participation, and the continued fine-tuning of regulatory frameworks by SEBI, despite global headwinds.
It also highlighted that from FY22 to FY26 (till December 2025), India’s primary markets have been instrumental in channelising savings into productive investments, mobilizing a total of ₹53 lakh crore through equity and debt issuances. Of this, ₹14 lakh crore was raised through equity issuances.
Post-listing performance remains weak
Despite strong investor response and a few bumper listings, post-listing performance has largely remained muted. About 211 stocks, or 57% of total listings, are trading below their issue prices, with names such as Valencia Studio, LSD Citichem India, and Mittal Sections trading over 70% below their issue prices.
The data also showed that 150 stocks are down between 20% and 83% from their IPO prices. On the upside, a handful of IPOs have turned into wealth creators. Anondita Medicare is trading 557% above its IPO price, followed by Tankup Engineers, which has gained 307% from its issue price. Overall, 26 stocks are trading more than 100% above their issue prices and 156 stocks above their issue prices.
Disclaimer: : We advise investors to check with certified experts before making any investment decisions.
