India's IPO market, which was red hot in recent years with a record number of listings on the Dalal Street, appears to have lost the momentum in 2026. Investors so far have been disappointed with tepid listing day gains, and the downward movement of stocks post their market debuts.
What was once a dominant and high-traction primary market has turned into a far more subdued and cautious space, with investors discovering that listing gains are no longer a given.
So far in 2026, 32 companies across the mainboard and SME segments have entered the Indian stock market following their fundraising programmes, according to Trendlyne. While 21 companies, or 65.6%, opened with gains on listing day, 11 companies debuted at a discount. However, the closing data tells a more balanced story: only 16 companies closed in the green, while the other 16 ended their first day in the red.
The bigger concern lies in post-listing performance. Of the 32 companies listed this year, 19 or 59.4% are currently trading below their issue prices. In effect, nearly two-thirds of IPO investors are sitting on losses.
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Although 21 stocks managed to list at a premium, just eight delivered double-digit gains on debut. During the same period last year, 18 stocks had posted double-digit listing gains, highlighting how sharply sentiment has cooled. The average listing gain in 2026 has slipped to nearly 8%. However, it is important to note that the first two months are not the right period to judge the average listing gains.
The underperformance is visible across segments. Among the worst hit is Yajur Fibres, which is trading at a staggering 70% discount to its IPO price. Aritas Vinyl, Narmadesh Brass Industries, Victory Electric Vehicles, Armour Security and Kanishk Aluminium are also down between 42% and 66% from their issue prices, reflecting the severity of the correction in several SME counters.
There are, however, pockets of strength. Thirteen companies are currently trading above their issue prices. Grover Jewels leads the pack, with shares up 95% over the IPO price. KRM Ayurveda, Accretion Nutraveda and Bharat Coking Coal have also delivered solid gains of 52%, 49% and 45%, respectively.
In fact, Bharat Coking Coal and E to E Transportation were the only two IPOs this year to debut with premiums exceeding 90%, at 95.7% and 90%, respectively. By comparison, between January and February 2025, six stocks had listed at a premium of 90% or more, underlining the cooling in listing-day exuberance.
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The slowdown is even more pronounced in the mainboard segment. There have been only five mainboard listings so far in 2026. Of these, three are currently trading below issue price, while two remain in positive territory. Bharat Coking Coal stands out with current gains of around 44.6%, and Amagin Media Labs is marginally higher at 6.9%. On the other hand, Fractal Analytics is down 10.1%, Aye Finance has slipped 7.5% and Shadowfax Technologies is lower by 4.3%.
The number of listings itself has moderated. The 32 IPOs so far this year compare with 50 during the same period last year. Yet even in 2025, listing gains had already begun to taper. The average listing gain stood at 49% in 2024 but fell sharply to 10.6% in 2025, despite a massive 373 IPOs, comprising 103 mainboard and 270 SME issues hitting the exchanges.
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