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FY26 IPOs: A Market of Missed Returns
6 Apr
Summary
- Most IPOs listed in FY26 failed to earn returns post-listing.
- Ather Energy, Belrise Industries led top gainers with high returns.
- Majority of large IPOs by issue size did not generate positive returns.
The primary equity market in FY26 presented significant challenges, with a majority of Initial Public Offerings (IPOs) failing to achieve positive returns after their listing until March 31. Geopolitical tensions and a weakening rupee, influenced by foreign investor exits, contributed to subdued equity performance.
Out of 109 mainboard IPOs that debuted in FY26, only 32, or one in three, provided positive returns, with 16 delivering double-digit gains. Considering the offer price instead of the listing price slightly improved these figures, with 37 IPOs generating returns.
Top performers included electric bikes maker Ather Energy (139% return over listing price), auto ancillary manufacturer Belrise Industries (98%), and Aditya Infotech (78%). However, the year was also marked by the underperformance of large IPOs.
Of the top 12 IPOs by issue size, only four earned returns. These were Lenskart and Groww (26% return each), ICICI Prudential AMC (11%), and Tenneco Clean Air India (8%). Conversely, VMS TMT, Highway Infrastructure, and Solarworld Energy Solutions experienced significant losses, falling 62% and 60% respectively.
