India’s initial public offering (IPO) market continued to deliver healthy listing gains in the current financial year, with mainboard issues recording an average listing-day gain of 12 per cent in FY2026-27. The average gain from issue price stood at 15 per cent as of July 31, according to an IPO Market Update by Axis Capital.
The report, which analysed 407 mainboard IPOs and follow-on public offers (FPOs) listed between July 2020 and July 2026, found that 12 of the 18 issues considered for FY2026-27 were trading above their issue prices as of July 31.
IPOs Deliver Strong Returns Over Longer Period
The broader performance of the IPO market remained strong over the longer term. Across the 407 IPOs analysed, the average listing gain stood at 21 per cent, while the average gain from the issue price increased to 66 per cent as of July 31.
The report found that 21 per cent of the companies covered were trading more than 100 per cent above their issue prices. Another 12 per cent were trading 50-100 per cent above the issue price, while 14 per cent were in the 25-50 per cent gain bracket.
A further 9 per cent of the companies were trading 10-25 per cent above their issue prices. However, post-listing performance remained uneven across companies. Around 5 per cent of the companies were trading 0-10 per cent below their issue price, while 10 per cent had declined by 10-25 per cent. Another 17 per cent were down 25-50 per cent, while 9 per cent had fallen more than 50 per cent from their issue prices.
July Sees Strong IPO Activity
The IPO market also remained active in July 2026, with 12 mainboard IPOs entering the market during the month. Of these, nine made positive debuts, one witnessed a flat listing, while three had not been listed as of July 31.
The broader IPO universe also outperformed key benchmark indices during the month. The combined market capitalisation of the 407 listed IPO companies increased 4.89 per cent month-on-month to Rs 64.59 lakh crore as of July 31, compared with Rs 61.58 lakh crore at the end of June.
During the same period, the Nifty 50 gained 2.17 per cent, while the S&P BSE Sensex rose 2.11 per cent. The S&P BSE IPO index, however, declined 0.51 per cent.
Large IPO Pipeline Builds
Axis Capital expects the IPO market to gain further momentum in the second quarter of FY2027, supported by a sizeable pipeline of companies preparing to access the primary market.
According to the report, 146 companies had received SEBI approval and were awaiting market entry, while another 67 companies were awaiting regulatory approval.
In addition, 65 companies had filed draft red herring prospectuses (DRHPs) with SEBI and were awaiting clearance, while 33 companies had filed confidential DRHPs since March 2025.
The sizeable pipeline suggests that primary-market activity could remain strong in the coming quarters, provided market conditions remain supportive.
Investor Interest Remains Strong
The data indicates that investor participation in India’s primary market has remained resilient, with mainboard IPOs continuing to deliver positive listing performance during the current financial year.
At the same time, the wide dispersion in post-listing returns highlights the importance of evaluating individual companies rather than viewing IPO performance as a uniform trend.
With a large number of companies already approved or awaiting regulatory clearance, India’s IPO market is positioned for continued activity through the coming quarters.
