IPO Activity Disappoints in Early 2024: 60% of Issuers Trade Below Initial Pricing

IPO Market Loses Momentum in 2026

The Indian IPO market, which has been a hotbed of activity in recent years, appears to have lost its momentum in 2026. According to Trendlyne, only 32 companies have listed on the exchanges so far this year, compared to 50 companies during the same period last year. This decline in fresh listings has resulted in a more subdued primary market, with companies listing at a discount or par with their IPO price.

Post-Listing Performance

The post-listing performance of IPOs has also been lacklustre, with only eight stocks listing with double-digit gains. This is a sharp drop from 18 stocks during the same period last year. Notably, 11 stocks have listed at a discount, while five debuted at par with their IPO price. The average listing gain has declined to a single-digit figure of nearly 8%, the lowest since 2019.

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Secondary Market Weakness

The extreme volatility in the Indian stock market is believed to be impacting IPO listing performance. Investors are adopting a selective approach, and subscription figures are reflecting this trend. Seventeen out of 32 issues have received subscription levels below 10x, while even some of the most hyped IPOs have received a tepid response.

Mid-Cap and Small-Cap Stocks

The persistent weakness in mid-cap and small-cap stocks in the secondary market has led to listing losses in most IPOs in 2026. According to Akshay Gupta, Director, Prime Securities Ltd., "While the primary market continues to remain robust, secondary markets influence post-listing stock movements."

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Listing Prices

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. 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, with investors prioritizing scalability and fair valuations.

Investor Losses

A majority of early investors are sitting on losses, with 19 companies trading below their issue prices. Among the worst performers are Yajur Fibres, trading at a 70% discount to its IPO price, and Fractal Analytics, trading 9.4% below its offer price. In contrast, 13 companies are trading with gains, led by Grover Jewels, which has delivered robust returns with shares trading 95% above the IPO price.