Now Reading: India IPO market matures as investors turn cautious
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India IPO market matures as investors turn cautious
India’s IPO market is shifting from momentum to maturity, according to a Grant Thornton Bharat report. Average oversubscription nearly halved to 39 times in FY26 from 71 times in FY25, while listing-day…
The Story in Brief
India’s IPO market is shifting from momentum to maturity, according to a Grant Thornton Bharat report. Average oversubscription nearly halved to 39 times in FY26 from 71 times in FY25, while listing-day gains dropped to 7 per cent from 29 per cent. The average annual performance of IPOs stood at negative 17 per cent. Smaller issues suffered most, with listing gains of just 2 per cent. Offer-for-sale transactions made up 61 per cent of mainboard proceeds, and debt repayment was the biggest use of funds.
Market experts caution that investors are becoming more discerning. In an interview with Times Now, independent analyst Ambareesh Baliga advised looking at valuations and promoters leaving room for investors. Feroze Azeez of Anand Rathi Wealth said IPOs are a sign of confidence, but investors should be careful not to overpay for future growth. Both said stretched valuations and sudden earnings improvements are red flags.
The Indian Opinion
The Grant Thornton data cuts through the hype. A common narrative is that a flood of IPOs proves ‘strong investor confidence’, but the sharply lower oversubscription and listing gains tell a different story. Investors are not blindly chasing; they are picking and pricing risk. And when experts warn that many offers price in flawless execution for years ahead, ordinary retail buyers should listen. The real test will come six months from now: how many of these IPOs trade below their issue price? That number will settle whether this is maturing or just cooling off.
Sources (2): businesstoday.in, timesnownews.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
