The Nithin Kamath IPO boom comments have drawn attention to an unusual trend in India’s equity market, where newly listed stocks are performing strongly even as the broader market faces pressure.
Zerodha founder and CEO Nithin Kamath highlighted the growing gap between the primary and secondary markets in a post on X. He described IPOs as the “only bullish corner” of the market and called the current IPO environment a “full-on party”.
Kamath pointed to the strong performance of recent listings and the rush of activity surrounding new issues. He said the divergence between the primary and secondary markets was unusually sharp compared with what investors have typically seen.
67.2% of Recent IPOs Above Issue Price
Data shared by Kamath showed that 125 mainboard IPOs were listed between October 2025 and September 2026. As of October 6, 67.2% of these stocks were trading above their issue prices, with the group recording a median return of 24.7%.
The gains were distributed across several ranges. Around 17.6% of the IPOs were trading 0-25% above their issue prices, while 18.4% had gained between 25% and 50%.
Another 17.6% had risen between 50% and 100%, while 13.6% had more than doubled from their issue prices.
The numbers suggest that investors who participated in several of these recent IPOs have, so far, seen significantly stronger returns than the broader market.
Recent IPO Cohort Outperforms Earlier Listings
The latest IPO cohort also performed better than companies listed during previous one-year periods.
Among 95 mainboard IPOs listed between October 2024 and September 2025, only 47.4% were trading above their issue prices. Their median return was negative 9.4%.
For the October 2023-September 2024 cohort, comprising 88 IPOs, 54.5% were trading above their issue prices, with a median return of 8.6%.
The latest cohort therefore stands out for both its higher proportion of stocks trading above issue prices and its stronger median return.
How Long Can the IPO Momentum Last?
The contrasting performance highlights the unusual behaviour of India’s equity market. While broader stocks have struggled, investor interest in new listings remains strong.
However, the divergence also raises questions about how sustainable the IPO momentum will be if wider market sentiment remains weak.
For now, the primary market continues to be one of the few bright spots in an otherwise pressured equity environment, with recent listings attracting strong investor participation and delivering notable post-listing gains.
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