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Small IPOs deliver stronger returns despite unchanged fundraising patterns

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Small IPOs deliver stronger returns despite unchanged fundraising patterns

Primary market activity has remained robust in 2026, although total issuance, the composition of offerings and the objectives of fundraising have remained broadly similar to 2024 and 2025

Small IPOs delivered stronger listing and one month post listing returns in CY2026 so far, while mid sized issues recorded moderate returns and large IPOs mediocre gains. Offers for sale accounted for 60 per cent of IPO issuances, while less than 25 per cent of proceeds went towards new plant and machinery and almost half towards balance sheet enhancement. Small and mid cap funds attracted 32 per cent of overall active equity fund flows in the first eight months of 2026, against 15 per cent in 2024 and 25 per cent in 2025. Sustaining small and mid cap outperformance will depend on companies meeting elevated earnings expectations and translating investment narratives into business execution.

Small initial public offerings (IPOs) delivered stronger returns at listing and one month after listing in calendar year 2026 so far, while mid sized IPOs recorded moderate returns and large IPOs delivered mediocre returns. The performance points to strong investor enthusiasm for smaller companies in the primary market over the past six months, even as the underlying pattern of fundraising has remained largely unchanged. Primary market activity has remained robust in 2026, although total issuance, the composition of offerings and the objectives of fundraising have remained broadly similar to 2024 and 2025, according to Kotak Institutional Equities. Advt

Offers for sale accounted for 60 per cent of IPO issuances in 2026.


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