The primary market is witnessing a strong revival, with a flurry of companies tapping Dalal Street and renewed investor interest bringing momentum back to the initial public offering (IPO) market.
The Indian stock market has seen more than 50 mainboard IPOs so far in 2026. In August, 11 companies have been listed, with several more IPOs in the pipeline. This follows 13 mainboard IPO listings in July.
Most of the companies that debuted in July and August have delivered strong returns since listing, with some stocks gaining as much as 100%. The upbeat momentum in the IPO market comes despite weakness in the secondary market, where global geopolitical tensions, volatile crude oil prices and persistent inflation concerns continue to weigh on investor sentiment.
On Wednesday, August 19, two mainboard IPOs made strong debuts on the Indian stock exchanges. Behari Lal Engineering shares were listed at a 61% premium to their issue price, while Shiprocket shares debuted at a 35% premium.
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Other recent listings have also witnessed strong demand. Among the recent IPO listings, Indo-MIM shares have emerged as one of the strongest performers. The stock, which was listed on July 30, is currently trading double its issue price.
Meanwhile, Behari Lal Engineering shares were listed on August 19 and are now up around 92% from its issue price.
Here are top 10 IPO performers in July and August:
IPO Market Revival Or Broad-Based Frenzy?
Market experts believe the recent pickup in IPO activity signals an improvement in investor sentiment towards the primary market, but does not necessarily indicate a broad-based IPO frenzy.
“A strong listing does not necessarily make an IPO a good long-term investment. Investors should look beyond the initial market excitement and ask whether the company's growth and earnings can justify the valuation,” said Ajay Garg, Director & CEO, SMC Global Securities.
According to Garg, investors should focus on factors such as management quality, earnings visibility, cash flows, competitive positioning and the valuation at which a company is being offered.
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“With more companies coming to the primary market, investors will have more opportunities, but they will also need to be more selective,” Garg said.
He added that while the IPO buzz has returned, the real test will be the performance of these companies after listing.
“Ultimately, sustainable returns will come from businesses that can deliver over the long term, not just stocks that make a strong debut,” he said.
Ratiraj Tibrewal, CEO, Choice Capital Advisors, also believes there has been a clear revival in sentiment towards the IPO market.
“There is clearly a revival in sentiment towards the IPO market. Strong listings in recent issues, healthy liquidity and improving investor participation indicate that the primary market is once again seeing good traction,” said Tibrewal.
However, he believes the current environment should be viewed as a healthy recovery rather than a broad-based IPO frenzy.
“The market remains selective, and companies with credible businesses and growth prospects are likely to receive greater interest,” he said.
Tibrewal added that while a strong listing can set the tone for an IPO, its long-term investment potential will ultimately depend on the underlying business.
“Business fundamentals, growth prospects, industry dynamics and the issue valuation will continue to be relevant considerations. With a healthy pipeline of IPOs expected, the increased choice should provide investors with a wider range of opportunities to evaluate,” he said.
“Over the longer term, returns are likely to be influenced by how the underlying businesses perform relative to the valuations at which they enter the market,” Tibrewal added.
With the IPO pipeline remaining strong, the primary market is likely to remain in focus in the coming months. However, experts believe investors should not chase listing gains and instead assess the fundamentals, valuations and long-term growth prospects of individual companies before investing.
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