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India's initial public offering (IPO) market continued to witness healthy listing gains in the current financial year, with mainboard issues delivering an average listing-day gain of 12 per cent in FY2026-27, while the average gain as of July 31 stood at 15 per cent, according to an IPO Market Update by Axis Capital.
The report, which analyses 407 mainboard IPOs and follow-on public offers (FPOs) listed between July 2020 and July 2026, said 12 of the 18 issues considered in FY2026-27 were trading above their issue prices as of July 31. For the retail category, the broader performance remained stronger over the longer term. The 407 IPOs recorded an average listing gain of 21 per cent, while the average gain from the issue price had risen to 66 per cent as of July 31, the report said. The data showed that 21 per cent of the companies covered were trading more than 100 per cent above their issue prices, while another 12 per cent were trading 50-100 per cent above issue price. A further 14 per cent were trading 25-50 per cent higher and 9 per cent were in the 10-25 per cent gain bracket. At the same time, the report highlighted considerable dispersion in post-listing performance. Around 5 per cent of companies were trading 0-10 per cent below their issue price, 10 per cent were down 10-25 per cent, 17 per cent were lower by 25-50 per cent and 9 per cent had declined by more than 50 per cent from their issue prices. The July performance also remained supportive. The report noted that 12 mainboard IPOs came to the market during the month, with nine making positive debuts, one witnessing a flat debut and three yet to be listed as of July 31. The broader IPO market also outperformed key benchmark indices during July. 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, from Rs 61.58 lakh crore at the end of June. In comparison, the Nifty 50 gained 2.17 per cent during the month, while the S&P BSE Sensex rose 2.11 per cent. The S&P BSE IPO index, however, declined 0.51 per cent during the period. The report said the IPO market is well positioned to gain further momentum in the second quarter of FY2027, supported by a robust pipeline of companies preparing to tap 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. Overall, Axis Capital's assessment points to sustained investor participation in the primary market, with listing performance remaining positive in the current fiscal while the sizeable pipeline of approved and pending issues provides scope for continued IPO activity in the coming quarters. (ANI)
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