While the Indian stock market has experienced significant volatility due to geopolitical tensions and trade concerns, the initial public offering (IPO) segment has demonstrated remarkable resilience, maintaining strong momentum throughout this period. Since the last Union Budget, Dalal Street has welcomed more than 350 new stock listings, showcasing the underlying strength of India's capital markets even during turbulent times.
SME Segment Leads the IPO Charge
According to comprehensive data from Trendlyne, a total of 366 companies have successfully completed their public offerings and listed on various stock exchanges following fundraising activities. What stands out prominently is the overwhelming dominance of the small and medium enterprise (SME) segment, which contributed 263 listings, representing approximately 72% of all new market entrants.
This surge in SME IPOs occurred despite market regulator SEBI implementing stricter norms for such offerings. The majority of these SME issues received exceptionally strong responses from investors, with numerous offerings witnessing subscription levels exceeding 100 times their initial size. This overwhelming participation was largely fueled by retail investors who entered these issues with expectations of substantial, multibagger returns on listing day.
Diverse Companies Access Capital Markets
The companies tapping into public markets represent a wide spectrum of India's evolving economy, ranging from innovative technology startups and financial technology firms to renewable energy businesses seeking to expand their operational scale. This diversity reflects the broadening of India's corporate landscape and the growing maturity of various industry sectors in accessing public capital.
Beyond sustained retail interest, the prevailing stock market volatility has also redirected foreign portfolio investors (FPIs) toward fresh issues, making IPOs one of their preferred investment avenues in the current market environment. Consequently, most issues have witnessed strong investor response, with even some big-ticket IPOs—which traditionally struggle to attract demand during volatile periods—experiencing robust subscriptions, thereby flipping the conventional market script.
Economic Survey Highlights Market Resilience
The Economic Survey 2025–26 has officially recognized the strength of India's primary market, noting that it has remained both resilient and vibrant while leading the world in IPO issuances during FY26. The report emphasized that this impressive performance was supported by sound macroeconomic fundamentals, robust investor participation across segments, and the continued refinement of regulatory frameworks by SEBI, despite facing significant global headwinds.
The survey further highlighted that from FY22 to FY26 (through December 2025), India's primary markets have played a crucial role in channeling domestic savings into productive investments, mobilizing an impressive total of ₹53 lakh crore through both equity and debt issuances. Within this substantial amount, equity issuances alone accounted for ₹14 lakh crore, demonstrating the significant capital formation occurring through public offerings.
Post-Listing Performance Presents Mixed Picture
Despite the strong initial investor response and a few exceptional listings that delivered bumper returns, the overall post-listing performance has remained largely muted. Approximately 211 stocks, representing 57% of total listings, are currently trading below their original issue prices. Some prominent examples include Valencia Studio, LSD Citichem India, and Mittal Sections, all trading more than 70% below their IPO prices.
The data reveals that 150 stocks have declined between 20% and 83% from their initial offering prices. This growing divergence between subscription hype and actual post-listing performance highlights the risks inherent in IPO investments, particularly in volatile market conditions.
Bright Spots in the IPO Landscape
On the positive side, a select group of IPOs has transformed into genuine wealth creators for investors. Anondita Medicare stands out as the top performer, currently trading an impressive 557% above its IPO price, followed closely by Tankup Engineers, which has gained 307% from its issue price. Overall, 26 stocks are trading more than 100% above their issue prices, while 156 stocks remain above their original offering prices, indicating that selective opportunities for substantial returns still exist within the IPO ecosystem.
This complex picture of the Indian IPO market—characterized by strong momentum, SME dominance, regulatory evolution, and mixed post-listing performance—continues to evolve as market participants navigate both domestic opportunities and global challenges.
