India’s IPO market has continued to attract investors despite the weak equity market as primary and secondary markets are very different. Nearly seven out of every 10 IPOs listed on BSE in 2026 are now trading above their issue price, as per the latest exchange data.
According to the Bombay Stock Exchange (BSE) statistics, there are 146 IPOs that have been listed so far this year. Of them, 102 are trading above their issue price and 40 below their offer price. The other four IPOs are mostly around the issue price. The numbers show that investors are still interested in companies that are in the market and there has been a lot of volatility in the market.
The performance is particularly remarkable when compared with the movement of the benchmark Nifty 50. The index started 2026 at around 26,150 on January 1 and has since fallen to about 23,650, a decline of roughly 9.5% to 10.5%. The market mood has been one of caution and the benchmark was down for most of the year.
So despite this pressure, companies entering the public markets have been able to attract significant investor attention. IPOs' listing day performance shows a very good appetite for new equity offerings. Of the 146 IPOs listed in BSE this year, 89 ended their debut trading session above the issue price while 53 closed below the issue price. That means around 61% of IPOs had positive returns on their first trading day.
As well as the divergence of IPO performance in terms of benchmark indices, the fact that investors are being more selective isn’t an issue for investors. While global economic conditions and market conditions have weighed on the established stocks, investors seem to be willing to back companies where they see better individual growth prospects, business opportunities, or attractive valuations.
Market conditions have been difficult in general for the broader equity market. The Nifty 50 has fallen for four consecutive weeks and has recently fallen to a six-week low. Rising crude oil prices, uncertainty in the global economy, and higher global bond yields have raised fears among investors. These factors have increased risk appetite and hurt the price of risk assets, and the IPO market has also been able to withstand it, so the IPO market is key.
Another important feature of the 2026 IPO market has been the continued expansion of the small and medium enterprise (SME) segment. Of the 146 IPOs listed on the BSE, 82 were launched on the BSE SME platform compared to 64 listed on the main board. The larger number of SME offerings shows the growing role played by smaller companies in India’s primary capital market.
The IPO market has a good performance despite SME listings accounting for the majority of the market. Investors are looking beyond large, established companies and looking for smaller businesses with potential for growth. But SME stocks also carry more liquidity and volatility risk, so company fundamentals are very important.
The overall performance of IPO-linked indices is also indicative of the strength of the primary market. The BSE IPO index, which tracks newly listed mainboard companies, gained 35% in the first five months of FY27, according to a report from ET. The BSE SME IPO index was even better and grew 55% over the same period.
The good performance has also helped keep momentum in the IPO pipeline. Six IPOs are due to open on September 9 and are collectively seeking to raise more than Rs 4,500 crore. The market will also be closely monitoring the expected public issue of the National Stock Exchange (NSE), which is expected to open the market later this month.
The pipeline of new IPO listings indicates companies and investors are confident in the strong pipeline and a stable fundraising climate for companies and investors. India is still optimistic that, despite the weakness of benchmark indices for company fundraising and the weakness in the stock market in general, there is an investor appetite for startups and companies to go public for expansion, debt reduction, and other strategic objectives.
For new companies, IPO demand is a good way to raise capital to grow, reduce debt, and find capital for expansion. New listings will help them to buy companies that were not available on public markets.
But IPOs are strong, and not every new issue will be a winner. With the significant number of IPOs across the SME segment, investors need to take valuations, earnings growth, debt levels, promoter holdings, and liquidity into account before investing.
Overall, the IPO market in 2026 has been very resilient. With 102 of 146 BSE-listed IPOs trading above their issue price and most of the IPOs having positive listing day performances in line with the market sentiment, the primary market remains relatively robust in comparison to the lack of activity in the benchmark indices. The IPO pipeline in the coming weeks, which will see the NSE IPO, will be another big test for investor appetite.
Comments
Please to leave a comment on this article.