IPO Boom Fades In FY26, 66% Listings Below Issue Price | FY27 Outlook

India’s IPO market in FY26 has seen a sharp reality check, with nearly 66% of listings trading below their issue price and many IPOs failing to deliver expected returns. Despite a record ₹1.79 trillion raised through 112 mainboard and 254 SME issues, weak secondary markets, aggressive valuations, and global volatility have hurt post-listing performance. Even large listings like Hyundai Motor India are trading below issue price, reflecting cautious investor sentiment. Analysts attribute the slowdown to excess supply, stretched pricing, and geopolitical uncertainty. Looking ahead to FY27, experts expect a more measured IPO pipeline, with recovery dependent on market stability and improved investor confidence.