In the past five years, the IPO market in India has gone through major changes. The market witnessed a boom in 2021 right after pandemic when funding was readily available and investors were highly excited about investing in IPOs. Many new-age tech companies entered the market during this period and received a lot of attention from both big and small investors.
Now in 2026, things feel quite different. The market has settled down and become way more mature. Retail participation has certainly grown now. That said, investors are no longer jumping in just because a company is currently in trend or belongs to a fast-growing sector.
Nowadays, the investors are looking into deeper details. They check profitability, revenue growth, financial results and long term plans of businesses. They want solid proof, not just stories to hear. This shows that investors have become more selective. The excitement of 2021 has given way to caution in 2026. The focus has majorly shifted from speed and scale to sustainability and strong fundamentals.
India’s IPO market is still growing but companies now need more than hype to convince investors in the market. Strong financials, good governance, clear growth plans and investor trust are becoming increasingly important for companies planning to get listed on stock exchanges. In this article, we will take a look at how India’s IPO market has evolved in recent years.
Here’s a look at how the IPO market evolved over past five years along with notable IPOs and key takeaways for investors:-
| Period | What Happened | Notable IPOs during the Period | Key Takeaway |
|---|---|---|---|
| 2021 - 22 | During this period, new-age tech companies and startups became very popular. Retail investors showed strong interest in IPOs of such companies. Also, funding was readily available during this period. However, during this period, several companies were listed despite not being profitable. |
Zomato, Nykaa, Paytm, PolicyBazaar | Investors were pretty comfortable with high valuations and focused on hype-driven buying. |
| 2022 - 23 | Rising inflation and interest rates during this period made investors more cautious. In addition, technology stocks like Wipro and Infosys faced major corrections during this period. |
LIC, Delhivery | Investors became more cautious and gave greater focus on profitability. |
| 2023 - 24 | IPO activity picked up pace in 2023-24. During this period, SME IPOs also gained strong momentum. Investors showed greater interest in companies that were able to demonstrate solid financials. |
Mankind Pharma, Tata Technologies, IREDA | During this period, strong financials attracted investor demand. |
| 2024 - 25 | IPO activity remained quite strong across sectors during this period. Several large companies entered the market. Investors also became more careful about valuations. |
Hyundai Motor India, Swiggy, Ola Electric | Strong demand with greater focus on valuations. |
| 2025 - 26 | IPO activity continued to remain strong during this period. At the same time, investors became more selective about valuations, financial performance and long term growth. |
Tata Capital, LG Electronics India, ICICI Prudential AMC, SBI Funds Management | Greater priority given to business fundamentals as well as sustainable growth. |
Here are some initial public offerings that achieved significant listing gains in recent years.
| Company Name | Year of IPO Launch | Issue Price (Rs.) | NSE Listing Price (Rs.) | NSE Gain (%) | BSE Listing Price (Rs. ) | BSE Gain (%) |
|---|---|---|---|---|---|---|
| Tata Technologies | 2023 | 500 | 1,200 | 140.00% | 1,199.95 | 139.99% |
| Sigachi Industries | 2021 | 163 | 570 | 249.69% | 575 | 252.76% |
| BLS E-Services | 2024 | 135 | 305 | 125.93% | 309 | 128.89% |
The following factors led to strong listings for the companies mentioned earlier:-
Reasonable valuations:- IPOs were priced fairly. Due to this reason, they were able attract a lot of attention from investors.
Strong demand:- High participation from both retail and institutional investors supported better listing performance.
Business story:- Companies showed that they could grow in future, had famous names or had a strong plan for how they would run their business. As a result, they were able to convince more and people to invest.
Fundamentals:- Companies were able to demonstrate good financials. Also, a strong plan for growing in the future made investors feel more confident.
Over the past five years, the IPO market in India has experienced many structural changes. A large no. of investors have moved away from hype and growth expectations. They are now more focused on factors like valuations, financial performance and long term growth.
Then (2021): Investors were willing to pay high valuations for high-growth companies due to hype even if their profitability was limited in 2021.
Now (2026): In 2026, people place more emphasis on earnings, cash flows, valuation and sustainable development.
Shift: From hype and growth to fundamentals and valuation discipline.
Over the past five years, the IPO market has matured a lot.
Investors are now looking past just listing gains and short-term returns.
Profitability, strong business models and financials are becoming important for IPO success. (The Financial Express)
Retail and institutional demand are holding up but investors are more selective.
India’s IPO market hit a fresh high, with mainboard IPOs raising a record Rs. 1.76 lakh crore (approx.) in 2025. (CNBC TV18)
To make an IPO successful, careful preparation and thorough pre-planning, compliance, documentation and long term strategy are extremely important.
A structured roadmap for an IPO can help a company raise capital. It can also help the company build market trust as well as support sustainable business growth over time.
It is a big step for any company to go public through initial public offering (IPO). The entire process needs to be carefully planned and then properly executed. If you are planning for a SME or Mainboard IPO, you can contact our IPO consultants at Registrationwala for IPO advisory services.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, finance and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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