Recent IPOs Deliver Mixed Returns as Investors Turn Selective

Forever News

India’s primary market has remained highly active in 2026, with a large number of companies tapping investors through initial public offerings (IPOs). While several recent listings have delivered substantial gains after debut, others have struggled to sustain their issue prices, highlighting the importance of valuation, earnings quality and market conditions.

The recent IPO performance also shows that strong subscription numbers do not necessarily guarantee sustained post-listing gains.

Recent IPO	Issue Price	Listing Price	Current Price*	Return vs IPO
Hero Motors	₹84	₹82	₹167.80	+99.8%
Jindal Supreme	₹93	₹120	₹168.82	+81.5%
SS Retail	₹424	₹624	₹714.35	+68.5%
Moneyview	₹34	₹55	₹53.88	+58.5%
Adroit Industries	₹134	₹235	₹235.98	+76.1%
Rentomojo	₹404	₹482.45	₹527.25	+30.5%
Swastika Infra	₹185	₹200	₹215.53	+16.5%
NSE	₹1,785	₹1,800	₹1,741	-2.5%
Varmora Granito	₹148	₹155	₹134.30	-9.3%
Elevate Campuses	₹362	₹355.10	₹344.80	-4.8%
ArMee Infotech	₹375	₹375	₹273.35	-27.1%

Strong performers

Some recently listed companies have generated significant appreciation over their IPO prices.

Hero Motors, which was issued at ₹84, initially listed at ₹82 but subsequently witnessed a sharp recovery. The stock moved to around ₹168, representing a gain of more than 100 per cent from its issue price.

Jindal Supreme has also performed strongly. Issued at ₹93 and listed at ₹120, the stock subsequently moved towards ₹169, translating into a substantial gain for investors who stayed invested after listing.

Adroit Industries has similarly remained well above its ₹134 issue price, while Moneyview delivered a strong debut after its ₹34 issue opened around ₹55. The company attracted exceptionally high subscription interest, reflecting strong investor demand.

These performances demonstrate the potential for substantial returns in selected IPOs, particularly when market sentiment, business prospects and valuations remain supportive.

Not every IPO has performed equally

The performance of other recent listings has been considerably weaker.

NSE, despite being one of the country’s most closely watched IPOs and the largest issue of the year at approximately ₹22,568 crore, listed at ₹1,800 against an issue price of ₹1,785. The stock subsequently traded below the issue price, around ₹1,741.

Varmora Granito also moved below its ₹148 issue price, while Sonaselection India traded below its ₹99 issue price.

ArMee Infotech has witnessed a more pronounced decline. After being issued at ₹375 and listing at the same level, the stock subsequently fell to around ₹273.

The contrasting performance of these stocks underlines an important feature of the IPO market: a successful IPO subscription or high-profile brand does not automatically translate into post-listing returns.

September sees strong IPO activity

September 2026 was particularly active for India’s primary market, with dozens of companies raising substantial amounts through IPOs.

The surge in fundraising reflects continued investor appetite for new businesses and the willingness of companies to access the equity markets for expansion, debt reduction and other corporate requirements.

However, valuations have also become an important consideration. Several recent IPOs entered the market at relatively high earnings multiples, leaving less room for disappointment if future earnings fail to meet investor expectations.

Subscription is not the whole story

One of the most important lessons from the recent IPO cycle is that investors should look beyond subscription figures.

An IPO may receive exceptionally strong demand because of limited share availability, institutional participation, market sentiment or expectations of listing gains. Once the shares begin trading freely in the secondary market, however, the stock is ultimately valued according to its earnings prospects, cash flows, growth potential and valuation.

The experience of NSE is a good illustration. Strong investor interest and the company’s prominent position in India’s financial infrastructure did not prevent the stock from trading below its issue price after listing.

Conversely, some relatively smaller IPOs have delivered much stronger post-listing appreciation.

What investors should watch

Investors evaluating recent IPOs should examine several factors before deciding whether to buy after listing.

Valuation: Compare the IPO’s P/E and other valuation measures with listed competitors.

Earnings growth: Strong historical growth is useful, but the sustainability of future earnings is more important.

Debt and cash flow: Companies with high debt or weak cash generation require greater scrutiny.

Promoter holding: Changes in promoter ownership and the presence of significant offer-for-sale components can influence the investment case.

Use of IPO proceeds: Fresh capital used for expansion can have a different impact from an IPO primarily consisting of an offer for sale.

Post-listing valuation: Investors should not assume that a stock is attractive merely because it has fallen from its IPO price. A lower price does not necessarily mean a cheaper valuation.

IPO market enters a more selective phase

The 2026 IPO market has produced both spectacular winners and significant underperformers. This divergence suggests that investors are increasingly required to distinguish between companies rather than treating the IPO market as a single opportunity.

For short-term traders, listing momentum, liquidity and market sentiment may remain important. For long-term investors, however, the focus needs to shift towards earnings visibility, competitive advantages, management quality, balance-sheet strength and reasonable valuations.

The recent IPO experience therefore offers a clear message: the success of an IPO should not be measured simply by its subscription multiple or first-day listing performance. The real test begins after the listing, when the company has to deliver sustained earnings growth and create long-term shareholder value.