IPO market remains subdued in 2026 as listing gains moderate

IPO

• IPO activity in India has slowed in early 2026
• Most 2026 IPOs listed at/below issue price, except Bharat Coking Coal
• Market volatility and aggressive pricing lower investor confidence

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India’s primary market has started 2026 on a subdued note, with IPO activity slowing after 2025 saw several large listings deliver flat or negative returns. Only nine issues have been launched so far this year, even as more than Rs 2 lakh crore worth of IPOs remain in the pipeline.

Of the five IPOs listed so far, four — Amagi Media Labs, Shadowfax Tech, Fractal Analytics and Aye Finance — debuted marginally below their issue price. Only Bharat Coking Coal listed above its issue price, delivering gains of 76 percent on debut.

Data show that average listing gains rose from about 11 percent in 2022 to 29 percent in 2023 and 30 percent in 2024, before moderating to 9 percent in 2025. Of the 103 IPOs in 2025, more than 50 percent traded below their IPO price, and only a handful delivered returns of over 50 percent. Most slipped into negative territory within three to six months of listing.

Ajay Bagga, an independent analyst, said the weak performance of 2025 listings, the high proportion of offers for sale that provided exits to promoters and funds, steep valuations in IPOs and secondary markets, and the absence of broad positive triggers for Indian markets have contributed to the current trend.

Analysts said 2023 saw a post-Covid boost in IPO activity, with issues priced more reasonably as markets tested the waters and overall sentiment remained positive. Over the last two years, pricing has become more aggressive, and promoters have reduced stakes through offer-for-sale routes.

In 2025, India’s benchmark Sensex and Nifty gained 9 percent and 10 percent, respectively, while the BSE MidCap rose 1.1 percent and the BSE SmallCap declined 6.6 percent. So far in 2026, the Sensex and Nifty have fallen 1.7 percent and 1.2 percent, respectively, while the BSE MidCap and BSE SmallCap have declined 1.2 percent and 3.5 percent.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said markets have been volatile in recent months, with the Nifty slipping below 25,000 before recovering to around 25,500. He said earlier exuberance in the IPO market has moderated, and that valuations of companies entering the IPO market appear stretched.

In 2025, a total of 103 IPOs were launched, raising a record Rs 1.76 lakh crore. This compares with 91 IPOs in 2024, which collectively raised Rs 1.6 lakh crore through public offerings.

Deepak Jasani, another independent analyst, said recent lukewarm listing gains have led to some postponement of IPO listings. He said promoters and investment bankers continue to price issues based on comparable valuations and grey market premiums, but several IPOs have listed either flat or at a discount to the issue price. He added that secondary-market investors remain cautious about supply from pre-IPO investors after lock-in periods end and that some companies have reported weaker numbers after listing.

While the IPO pipeline remains strong, led by companies seeking exits for early investors, valuations and timing will be closely watched, Jasani added.