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Indian IPOs Surge While Market Dips: A Divergent Trend
7 Oct
Summary
- Majority of recent mainboard IPOs trade above their issue prices.
- Zerodha CEO notes a stark divergence between primary and secondary markets.
- Broader Indian equity markets face pressure amid global and economic concerns.
Indian equity markets are currently experiencing pressure, yet the primary market presents a contrasting scenario with most recent mainboard IPOs trading successfully above their original issue prices. Zerodha founder and CEO Nithin Kamath has pointed out this significant divergence, describing IPOs as the "only bullish corner of the market right now."
Kamath observed that the broader market exhibits characteristics of a bear market, with steady declines. In contrast, IPOs are characterized by "a full-on party," evidenced by the strong performance of recent listings and increased activity. Data from October 6, 2026, indicated that 67.2% of 125 mainboard IPOs listed between October 2025 and September 2026 were trading above their issue prices, with a median return of +24.7% for this cohort.
This recent performance of IPOs significantly outperforms preceding cohorts. For instance, only 47.4% of IPOs from October 2024 to September 2025 traded above their issue prices, yielding a median return of -9.4%. The current market sentiment for equities is affected by factors such as elevated oil prices, geopolitical tensions, weakening economic conditions, and currency depreciation, causing the Nifty 50 to trade below its peak.
