India's initial public offering (IPO) market is likely to remain active through the end of 2026, with the country expected to see close to 100 IPOs by year-end, according to Bharat Lahoti, President and Co-Head, Factor Investing at Edelweiss Mutual Fund.
Speaking to NDTV Profit, Lahoti said IPO valuations have become “smoother” over time, with companies increasingly coming to the market from fast-growing sectors. However, the strong primary-market activity has not necessarily translated into gains for investors after listing.
According to Lahoti, around 25% of newly listed companies are currently not delivering good returns, while several recent entrants are trading below their listing prices.
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The increasing presence of companies from high-growth sectors has also changed the composition of the IPO market. While such businesses can offer higher growth potential, investors need to assess valuations and the sustainability of that growth rather than relying solely on the sector narrative.
Lahoti also highlighted corporate governance as a key criterion for evaluating IPO investments.
The comments come amid continued activity in India's primary market, where a large pipeline of companies is seeking to raise capital. With the number of IPOs expected to remain elevated, post-listing performance and valuation discipline are likely to become increasingly important for investors.
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