Pricing, Not Size, Determines IPO Success as Mega Issues Queue up

Even though India has witnessed some of its largest IPOs, it is important to note that these have not necessarily meant instant gains for the investors in many cases, where some well-known stock market listings have performed poorly in terms of value after listing despite being famous brands.

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One can see that in the past, companies like One 97 Communications (the parent company of Paytm), Life Insurance Corporation of India and Hyundai Motor India have listed on the stock market in India with issues sizes of ₹18,300 crore, ₹20,557.23 crore and ₹27,858.75 crore, respectively.

Among recent large offerings, LG Electronics has fared better. The stock is currently trading about 41% above its issue price of ₹1,140. Tata Capital, which raised ₹15,511.87 crore through its public issue, is trading nearly 6% above its offer price of ₹326 per share, according to market data.

Upcoming Mega IPOs

India’s primary market is preparing for two of its largest listings. Jio Platforms Ltd, controlled by Reliance Industries, filed its draft red herring prospectus last week. As per reports, the company plans to raise around ₹37,700 crore through the offering.

Earlier this month, the National Stock Exchange filed its draft papers with the Securities and Exchange Board of India for an estimated ₹30,000-crore initial public offering. The issue will consist entirely of an offer for sale, allowing existing shareholders to dilute their holdings without issuing fresh equity.

Market participants indicate that pricing will remain the key factor determining investor interest in these issues. Companies that leave room for gains after listing are generally better received, while aggressively valued offerings often struggle to sustain momentum.

Primary Market Activity Remains Strong

Data from PRIME Database showed that 112 companies raised ₹1,78,963 crore through mainboard IPOs during FY26, compared with ₹1,62,387 crore mobilised by 78 issues in the previous financial year. The amount raised increased by about 10% year-on-year.

The steady flow of public offerings has come despite periodic volatility linked to geopolitical developments and global market conditions. The secondary market environment, which has been supportive, continues to help in raising funds.

Valuations are Key

More emphasis is being placed by investors on valuations, industry prospects and comparison with peers than just the size or profile of the company. Large-scale transactions tend to result in good subscriptions, although past performance shows that simply having brand value does not guarantee positive listing performances.
As the transactions for the NSE and Jio Platforms get ready for the market, it is believed that investor interest will be centered on valuation and the market environment.