Neutral impactIPO
IPO boom is back, but are listing gains really easy money? Zerodha co-founder Nithin Kamath warns
Mint 1 hr ago·3 Sept 2026, 7:39 am
India's primary market is seeing a surge in Initial Public Offerings (IPOs), with many companies successfully raising capital. However, despite the high volume of listings, the days of guaranteed easy profits are fading. Zerodha co-founder Nithin Kamath has highlighted that while a majority of IPOs do open above their issue price, the magnitude of these gains is shrinking. This shift suggests that the market is becoming more selective, and investors can no longer rely on the 'lottery ticket' mentality that characterized previous boom cycles.
For investors, this trend serves as a critical reminder to look beyond the hype. The current environment indicates that listing gains are becoming less predictable, meaning stocks may not automatically rally on their debut. It is essential to analyze the fundamentals of the company before applying for an IPO, rather than assuming the listing price will always be a profit. Understanding the specific business model and valuation is now more important than ever for retail investors looking to participate in the market.
Moving forward, investors should pay close attention to the grey market premiums and the overall sentiment surrounding upcoming issues. A sustained drop in listing gains could signal a cooling of the IPO market, making it harder for companies to raise funds. Keeping a close watch on the broader market conditions and the performance of recent listings will help investors make more informed decisions and avoid potential losses in a volatile environment.
Excerpt from Mint
India's primary market remains strong with active IPOs and public offerings, even as broader equity markets struggle. Zerodha's Nithin Kamath notes that while most IPOs open above their issue price, substantial gains are becoming less common, warning investors against assuming easy profits. India’s primary market is…Read the original at Mint
Key takeaways
- Category: IPO.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
