18 hrs ago
India’s IPO Boom Masks Limits of Easy Listing Gains
Many companies in India are selling shares to the public through IPOs.
Lots of people are applying because they hope the shares will rise on the first day.
Nithin Kamath says the IPO market is very busy even though the wider stock market has not moved much.
Most IPOs did open above their starting price in the latest year studied.
However, the typical gain was only 6.08 percent.
More than one-quarter opened below their issue price.
Only four of the 108 IPOs rose by more than 50 percent at opening.
Popular IPOs can also be difficult to get because many people apply for them.
This means IPOs can make money, but they are not guaranteed easy money.
India’s primary market remains highly active despite limited momentum in the broader equity market.
Public equity issues raised more than ₹2 lakh crore in each of the previous two years, with the current year potentially matching or exceeding that level.
Zerodha co-founder Nithin Kamath said IPO applications have surged, including from people opening accounts specifically to apply.
Among 108 Main Board IPOs in September 2025–August 2026, 74.1% opened above their issue price, but the median listing gain was only 6.08%.
Kamath warned that popular IPOs may offer lower allotment odds, so strong demand does not guarantee easy profits.
- Who
- Indian companies, retail investors, and Zerodha co-founder Nithin Kamath.
- What
- India’s IPO market is experiencing strong activity, while data shows that listing gains are often modest and can be negative.
- Where
- India’s primary and equity markets.
- When
- The latest IPO performance period ran from September 2025 to August 2026; fundraising data for 2026–27 was provisional through August 31, 2026.
- Why
- Companies are continuing to raise capital through IPOs, OFSs and FPOs, while investors are seeking listing-day gains.
IPO Enthusiasm
IPO Caution
Market opportunity
IPO Enthusiasm
Strong IPO, OFS and FPO activity suggests companies can continue attracting investor capital even while the broader market remains subdued.
IPO Caution
High activity and subscription demand do not show that investors will receive strong listing gains.
Likelihood of profit
IPO Enthusiasm
Most IPOs opened above their issue price in each of the five periods shown, including 74.1% in the latest period.
IPO Caution
The latest median gain fell to 6.08%, more than one-quarter opened below issue price, and only four of 108 IPOs gained more than 50%.
Investor access
IPO Enthusiasm
A surge in applications indicates strong retail participation and interest in new issues.
IPO Caution
The more popular an IPO is, Kamath said, the lower an individual applicant’s odds of receiving an allotment may be.
Key facts
- Latest IPO sample
- 108 Main Board IPOs from September 2025 through August 2026.
- Above-issue openings
- 74.1% of the latest-period IPOs opened above their issue price.
- Median listing gain
- 6.08% in the latest 12-month period.
- Below-issue openings
- About 26% of the latest-period IPOs opened below their issue price.
- Large fundraising years
- India raised more than ₹2 lakh crore through public equity issues in each of the previous two years, according to the chart.
- Long-term data
- From 1989–90 to 2026–27, the chart records ₹15.13 lakh crore raised through 7,032 issues.
- Data source
- PRIME Database Group, annual data.
Quotes
Nithin Kamath
Co-founder of Zerodha and commentator on India’s capital markets
“The one thing this chart doesn’t show is that the more popular the IPO, the lower your odds of actually getting an allotment.”
livemint.com
“While the broader markets have gone nowhere, the primary market (IPOs, OFS, and FPOs) is red hot.”
livemint.com
Sources
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