Retail investors’ primary-market investments hit record Rs 34,840 crore in FY26 so far

markets

• Retail investors invest a record Rs 34,840 crore in primary markets in FY26.
• Retail investors withdraw Rs 13,000 crore from secondary market amid volatility
• 2025 sees strong IPO activity: 103 mainboard and 267 SME listings raise funds.

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Even as retail investors have remained net sellers in the secondary markets amid huge volatility, they have turned significantly active in the primary markets, with investments by individuals in FY26 so far rising to record levels.

In FY26 (April–November) so far, investments by retail investors in the primary market touched a record Rs 34,840 crore, compared with Rs 34,336 crore in FY25 (April–March) and Rs 18,057 crore in FY24 (April–March).

In contrast, participation in the secondary market has been subdued, with retail investors recording an outflow of about Rs 13,000 crore in FY26 so far, against an inflow of Rs 1.25 lakh crore in FY25 and Rs 47,241 crore in FY24.

Analysts say the surge in primary-market participation by retail investors is largely a search for returns, even as several listings have delivered muted debuts and volatility has persisted in the secondary markets.

Siddharth Bhamre, Head of Research at Asit C. Mehta Investment Intermediates, said muted returns in the secondary market, particularly in the mid- and small-cap segments, have left investors dissatisfied, prompting a shift of funds toward the primary market. He noted that while returns from new listings may not be exceptional, investors are still able to capture gains of around 10 to 15 percent on debut, encouraging higher subscriptions.

As more investors allocate larger sums, subscription levels rise further, creating a cascading effect that continues to draw money into primary issues despite subdued listing performance. In contrast, Bhamre said, the secondary market has offered limited opportunities, and retail investors are unlikely to return in a meaningful way unless price momentum improves, as they typically follow performance trends.

Indian markets recorded strong fund-raising through the primary market in 2025. On the mainboard, 103 companies launched IPOs, raising more than Rs 1.76 lakh crore. In the SME segment, 267 firms came out with IPOs, mobilising a record Rs 11,435 crore.

Out of 108 mainboard listings in 2025, 72 companies opened above their issue price while 36 began trading below it. Among the gainers, 16 stocks surged between 30-70 percent on listing, 22 recorded gains of 10-30 percent, and 34 posted listing-day increases of 1-10 percent. Of the 36 listings that opened lower, 30 slipped between 1-10 percent below their issue price, while six declined between 15-35 percent on debut.

Meanwhile, in 269 SME listings, 98 companies opened below their price band on listing day, while 170 debuted above the issue price. Of these, 18 stocks nearly doubled on listing, 32 opened with gains of 30–90 percent, and 120 registered increases of 1–30 percent over the issue price.

Interestingly, the secondary market in 2025 saw a selective rally, with gains concentrated in a limited set of stocks while the broader market faced pressure. Out of 2,667 listed companies, nearly 90 percent were trading more than 20 percent below their 52-week highs, while around 413 stocks were 10–20 percent below their peaks and about 1,532 companies were 20–50 percent below their one-year highs.

The decline was steeper in several stocks, with around 397 names trading 50–75 percent below their 12-month highs and close to 30 companies nearly 75 percent below their 52-week peaks. Only about 10 percent of stocks recovered from their yearly lows and were trading close to their 52-week highs.

Nirav Karkera of Fisdom said secondary markets have remained within tight ranges over the past couple of quarters, while volatility within this range increased against the backdrop of macro uncertainties and questions around valuations. This resulted in rotation across stocks and sectors, though domestic inflows continued.

Karkera added that the primary markets gained momentum as several opportunities — either in terms of relative valuations or exposure to niche themes not available earlier in the listed universe — allowed investors to participate in the expected growth story, supporting flows into new issues.

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