FY26 IPO Review: Record Collections, But Most Investors Did Not Make Money

71 out of 108 mainboard IPOs in FY26 are currently trading below their issue price.

That single number tells the real story of India's primary market this year. FY26 raised approximately ₹1,75,186 crore across 108 mainboard IPOs, a record for Indian IPO fundraising. The market was willing to absorb record capital from issuers. It was far less willing to reward investors who subscribed to most of it.

This article breaks down what actually happened across FY26 IPOs, what the data says about subscription versus returns, and what the year's patterns mean for investors going forward.

FY26 Mainboard IPO Snapshot: Top 20 by Issue Size

The table below captures the 20 largest mainboard IPOs of FY26 by issue amount, along with subscription ratio, issue price, current market price, and absolute returns.

How the 20 Largest IPOs of FY26 Performed

The top 20 IPOs raised ₹1,12,634 crore between them, over 64% of all FY26 IPO fundraising. As a basket, they delivered returns of 12.07%, meaningfully better than the broader 108-IPO basket.

The performance split within the top 20:

• 11 of the 20 are trading above issue price; 9 are below
• Ather Energy led at 148.08% from issue price of ₹321 to current market price of ₹796.35. It listed modestly at ₹328 on debut day but appreciated substantially in the months after listing
• Groww came second at 62.28% and LG Electronics India third at 34.75%
• On the losing side, HDB Financial Services fell 20.26%, Pine Labs fell 26.98%, and WeWork India fell 30.47%

Average subscription across the top 20 was 14.62X. Notably, 11 of these 20 received single-digit subscription. Only 3 crossed 40X. These were large issues absorbed predominantly by institutional investors, with muted retail and HNI participation.

We covered the top 15 IPOs from the first half of FY26 in detail here: Biggest IPOs of First Half of FY26: Returns, Subscriptions and Market Performance.

How All 108 FY26 IPOs Performed

The broader picture across all 108 mainboard IPOs is less flattering than the top 20 alone suggests.

Returns distribution

An equal-weighted basket of all 108 IPOs would have delivered returns of approximately 7.58%.

Subscription distribution

49 out of 108 IPOs had single-digit subscription. That is a significant drop from the frenzy of FY24 and FY25 and reflects a clear tapering in HNI and retail appetite for new issues through the year.

Does High Subscription Predict High Returns? FY26 Data Says Not Always

One of the most persistent assumptions in IPO investing is that high subscription equals strong returns. FY26 challenges that directly.

The gap exists. But the bottom 10 still averaged 26.5X, which most investors would consider a well-subscribed issue. Several heavily subscribed IPOs delivered poor post-listing outcomes, while some lightly subscribed ones performed well.

Subscription ratio reflects demand at the time of bidding. It does not capture valuation quality, business fundamentals, market conditions at listing, or how secondary markets behave after the initial excitement fades.

The Listing Premium Trap: 32 IPOs That Listed Well but Fell Later

Of the 71 IPOs currently trading below their issue price, approximately 32 had actually listed at a premium on their debut day. They gave allottees a positive listing gain. They subsequently fell below even the issue price.

Pine Labs is a useful illustration. It listed at a premium on debut but has since fallen 26.98% below its issue price of ₹221. Investors who received allotment, saw a green listing day, and held on ended up worse off than if the stock had listed flat.

The pattern is not new to Indian IPO markets, but its scale in FY26 is notable. It underlines the difference between a good listing day and a good investment.

Why FY26 IPO Returns Fell Short Despite Record Collections

Four factors combined to create the gap between strong fundraising and weak investor returns.

What the FY26 Data Tells Investors Going Forward

FY26 is not a pessimistic story about IPOs as an investment category. It is a corrective story about pricing discipline and investor selectivity.

Three practical observations from the data:

• Size was an advantage. The top 20 IPO basket returned 12.07% versus 7.58% for the full basket. Larger IPOs tended to have better institutional backing, stronger anchor books, and more rigorous price discovery.
• Subscription is context, not confirmation. High subscription shows demand at bidding time. It is one input among several. Valuation, business quality, and secondary market conditions at listing matter equally or more.
• Listing day and long-term return are different questions. 32 IPOs answered yes to listing day gains and no to long-term returns. The decision to hold or exit on listing day is separate from the decision to apply.

For investors who want to understand what drives IPO performance more structurally, our analysis of PE-backed versus promoter-backed IPOs from FY20 to FY25 offers a useful longer-term lens.

Key Takeaways

• FY26 saw 108 mainboard IPOs raise approximately ₹1,75,186 crore, a record year for Indian IPO fundraising
• Only 37 of the 108 IPOs are trading above their issue price. The remaining 71 are below
• The top 20 IPOs as a basket returned 12.07%, outperforming the full 108-IPO basket at 7.58%, confirming that size was an advantage in FY26
• Ather Energy led all IPOs at approximately 148% returns from issue price; Groww and LG Electronics India also delivered strong gains
• High subscription did not reliably predict strong returns. Top 10 performers averaged 54.2X; bottom 10 averaged 26.5X
• 32 of the 71 IPOs currently below issue price had listed at a premium on debut day before subsequently falling below issue price
• FY26 reflects a market recalibrating toward realistic valuations after two years of strong subscription frenzy, and signals that selectivity over subscription chasing is the more durable approach

FAQs

1. How many IPOs were listed in FY26 and how much did they raise?

FY26 saw 108 mainboard IPOs raise approximately ₹1,75,186 crore, making it a record year for Indian mainboard IPO fundraising.

2. What percentage of FY26 IPOs are below their issue price?

Approximately 66%, or 71 out of 108 mainboard IPOs in FY26, are currently trading below their issue price.

3. Which FY26 IPO gave the highest returns?

Among the top 20 IPOs by issue size, Ather Energy delivered the highest returns at approximately 148% from its issue price of ₹321 to its current market price of ₹796.35.

4. Did high IPO subscription mean better returns in FY26?

Not consistently. The top 10 performers averaged 54.2X subscription while the bottom 10 averaged 26.5X. Subscription was one signal, not a reliable predictor of post-listing performance on its own.

5. Why did so many FY26 IPOs fall below their issue price?

A combination of aggressive valuations at issuance, high supply volume across the year, a weak secondary market driven by FPI outflows and geopolitical uncertainty, and a high OFS component in many issues all contributed to post-listing underperformance.

6. What is the listing premium trap in IPOs?

Around 32 of the 71 FY26 IPOs now below issue price had actually listed at a premium on their debut day before subsequently declining below the issue price. It is a reminder that a positive listing day return and a sound long-term investment are two different things.

Disclaimer: This article is for general information and educational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. IPO data, market prices, and return figures referenced in this article are based on publicly available information and internal analysis by Finnovate, and are subject to change. Past performance of any IPO or basket of IPOs is not indicative of future returns. Investors should not make any investment decision based solely on this article. Please consult a SEBI-registered investment adviser or qualified financial professional before making any investment decision. Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.