New Delhi [India], October 7 (ANI): India’s IPO market remains the only “bullish corner” amid a sustained decline in the broader market, said Zerodha CEO Nithin Kamath.
In a post on X, Kamath said the broader market has been steadily declining even though headline numbers may not fully reflect the extent of the weakness.
“The only bullish corner of the market right now is IPOs,” he said.
Comparing the performance of the broader market with the ongoing activity in initial public offerings (IPOs), the Zerodha co-founder said market conditions currently feel bearish despite what the numbers may indicate.
“The broader market has been steadily falling. The numbers may not fully show it, but it certainly feels like a bear market.”
IPOs, however, have continued to see strong activity, as per Kamath, as he pointed to the performance of recent listings and the rush of activity in the primary market.
“IPOs, on the other hand, are a full-on party. Most recent listings have done well, and you can see it in the rush of activity,” the post read.
He further highlighted the contrast between the primary market, where companies raise capital through new share offerings, and the secondary market, where already-listed shares are traded.
https://x.com/Nithin0dha/status/2107788558685839693
“I don’t remember the last time we saw such a stark divergence between the primary and secondary markets. Strange are the times we live in,” he said.
Kamath also shared a chart showing how main-board IPOs from the past five annual cohorts are trading as of October 6, 2026, compared with their original issue prices. It covers 401 IPOs and excludes SME listings, REITs, InvITs and FPOs.
As per the graphical representation, of the 125 IPOs listed between October 2025 and September 2026, 67.2 per cent are currently trading above their issue price, with the cohort delivering a median return of 24.7 per cent. In other words, roughly two-thirds of these recently listed companies are still giving investors positive returns over their IPO price.
Within this latest cohort, 13.6 per cent of IPOs are trading more than 100 per cent above their issue price. Another 17.6 per cent are up 50-100 per cent, while 18.4 per cent are trading 25-50 per cent higher.
The contrast becomes clearer when compared with the October 2024-September 2025 cohort. Only 47.4 per cent of those 95 IPOs are currently above their issue price, while their median return is negative 9.4 per cent. More than half are therefore trading below their IPO price.
Interestingly, the older cohorts also show positive median returns: 41.3 per cent for October 2021-September 2022, 16.6 per cent for 2022-23 and 8.6 per cent for 2023-24. However, as the chart itself cautions, older IPOs have had much more time to rise or fall. (ANI)
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