3 weeks ago
India IPO Market Maturing as Investors Seek Fair Valuations
An IPO is when a company sells its shares to the public for the first time.
A report from Grant Thornton Bharat says India's IPO market is becoming more mature.
In the past, many investors rushed to buy IPO shares quickly.
Now investors are being more careful and picky.
They want to see good company leadership, honest numbers, and fair prices.
The number of investors asking for IPO shares has dropped from 71 times to 39 times the shares available.
Shares that used to jump up a lot on the first day now go up much less.
Some IPOs are even losing value a year later.
The report says this is a sign of the market growing up and moving away from hype.
Average IPO oversubscription nearly halved to 39 times in FY26 from 71 times in FY25.
Average listing-day gains dropped to 7 per cent in FY26 from 29 per cent a year earlier.
Average annual performance of IPOs stood at negative 17 per cent, reflecting weak aftermarket returns.
Offer-for-sale transactions accounted for 61 per cent of mainboard fundraising, while fresh issues rose to 39 per cent from 35 per cent.
Financial services led FY26 fundraising with around Rs 59,800 crore raised across 12 IPOs.
- Who
- Investors in Indian IPOs, including qualified institutional buyers, and Grant Thornton Bharat, which published the report.
- What
- India's IPO market is maturing as investors place greater emphasis on governance, earnings quality and fair pricing.
- Where
- India.
- When
- Fiscal year 2026 (FY26), with an outlook for FY27.
- Why
- Investors are prioritising governance, earnings quality and valuations over growth narratives and abundant market liquidity.
Key facts
- Report source
- Grant Thornton Bharat
- Average IPO oversubscription (FY26)
- 39 times, down from 71 times in FY25
- Average listing-day gains
- 7%, down from 29%
- Average annual IPO performance
- Negative 17%
- OFS share of mainboard proceeds
- 61%
- Fresh issue share of proceeds
- 39%, up from 35%
- Largest use of proceeds
- Debt repayment, about 26%
- FY26 fundraising leader
- Financial services, ~Rs 59,800 crore across 12 IPOs
Sources
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