India's Primary Market: A 'Red Hot' IPO Surge in 2026

30 SEC SUMMARY

In 2026, India's primary market is experiencing a significant surge in IPOs, OFS, and FPOs, despite the broader equity market's lack of momentum. Zerodha founder Nithin Kamath notes that the capital raised through the primary market this year is on track to match or exceed the levels of the previous two years. However, the challenge remains in achieving consistent returns from new listings.

TABLE OF CONTENTS

1. Introduction
2. Primary Market Surge
3. Challenges in the Primary Market
4. Upcoming IPOs
5. Conclusion
6. Call-to-Action

KEY HIGHLIGHTS

• India's primary market is'red hot' with strong IPO, OFS, and FPO interest.
• Zerodha has seen a sharp increase in IPO applications.
• Despite strong demand, consistent returns from new listings are challenging.
• Upcoming IPOs from major companies like Jio Platforms and PhonePe.

Introduction

In 2026, the Indian primary market remains exceptionally active, driven by a robust surge in Initial Public Offerings (IPOs), Offer for Sale (OFS), and Follow-on Public Offers (FPOs). Despite the broader equity market's struggle to gain momentum, the primary market continues to attract significant investor interest.

Primary Market Surge

Zerodha founder Nithin Kamath has highlighted the impressive activity in the primary market. According to Kamath, the amount raised through the primary market this year is already on track to match or even surpass the levels seen in the previous two years. This surge is largely driven by a strong pipeline of companies preparing to go public.

Kamath shared his insights on LinkedIn, stating:

"While the broader markets have gone nowhere, the primary market (IPOs, OFS, and FPOs) is red hot. By capital raised, this year is already on track to match, if not surpass, the last two years. And there’s a big pipeline of IPOs coming up (link in comments)."

The IPO rush is also evident on Zerodha’s platform. Kamath noted a sharp increase in IPO applications, including users opening accounts specifically to participate in public offerings.

Challenges in the Primary Market

Although the primary market is bustling with activity, strong demand does not necessarily translate into strong returns for investors. Kamath pointed to IPO listing data to highlight the difficulty of making money consistently from new listings.

While 74–80% of IPOs opened above their issue price, a good chunk of them didn’t deliver spectacular gains. In the latest period, 35% of IPOs opened just 0–10% above their issue price, while around 26% opened below the issue price.

Kamath also pointed out another challenge for retail investors: getting an allotment in the first place. "By the way, the one thing this chart doesn’t show is that the more popular the IPO, the lower your odds of actually getting an allotment," he added.

Upcoming IPOs

The primary market is expected to remain busy in the coming months, with several major companies planning to tap public markets. Companies such as Jio Platforms, PhonePe, Razorpay, and NSE are among those expected to launch IPOs.

Earlier this year, Shiprocket and Tata Capital also made their market debuts, adding to the IPO activity that has kept India’s primary market considerably more active than the broader equity market.

Conclusion

In summary, India's primary market in 2026 is experiencing a significant surge in IPO activity, driven by strong investor interest and a robust pipeline of companies preparing to go public. While this presents exciting opportunities, investors should remain cautious and conduct thorough research due to the inherent challenges in achieving consistent returns from new listings.

Call-to-Action

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Internal Links:

• YourStory Media Pvt. Ltd.
• Zerodha's Official Website

External Link:

• IPO Listing Data Analysis

Inline Images:

FAQ Section:

What is the primary market in India?

The primary market in India refers to the market where new securities are issued and sold for the first time. It includes IPOs, OFS, and FPOs.

Why is the primary market 'red hot' in 2026?

The primary market is'red hot' due to strong investor interest in IPOs, OFS, and FPOs, despite the broader equity market's struggles.

What challenges do investors face in the primary market?

Investors face challenges such as inconsistent returns from new listings and lower odds of getting an allotment for popular IPOs.