Investments by retail investors in the primary market surged to a record Rs 34,840 crore in FY26, marking a significant increase from Rs 34,336 crore in FY25 and Rs 18,057 crore in FY24. The Indian markets experienced robust fundraising activities in 2025, with 103 mainboard IPOs raising over Rs 1.76 lakh crore and 267 SME IPOs mobilizing a record Rs 11,435 crore.
Of the 108 mainboard listings, 72 debuted above their issue price, while 36 traded below it. Notably, 16 stocks witnessed a rise of 30–70 per cent on listing, 22 gained between 10–30 per cent, and 34 saw an increase of 1–10 per cent. Despite active participation in the primary market, retail investors turned net sellers in the secondary market, with outflows of around Rs 13,000 crore in FY26 till November-end compared to inflows of Rs 1.25 lakh crore in FY25.
Analysts attribute this shift to the pursuit of returns amidst subdued performance in the secondary market, particularly in mid- and small-caps, where a significant portion of stocks traded well below their 52-week highs. Moreover, increased volatility in many stocks in the secondary markets was observed due to macro uncertainties and concerns regarding valuations.
Although returns from new listings in the primary markets may not be substantial, investors can still capture gains of approximately 10 to 15 per cent on debut, which has been encouraging higher subscriptions. A recent report highlighted that India’s IPO market has entered a structurally stronger phase, positioning itself as the global leader by deal volume, with an estimated capital formation of around Rs 4 lakh crore in 2026.
India’s equity capital markets have evolved from primarily being a cyclical fundraising avenue to a more robust platform for capital formation. In 2025, India led the world in the number of IPOs and ranked among the top three markets in terms of IPO proceeds. The country’s IPO activity exhibited continuity across issue sizes, with notable growth in the Rs 100–500 crore and Rs 1,000–2,000 crore segments, as per the report.
