Q1-FY26 IPO Story: Starts off on a strong note

4 Jul 2025 , 09:28 AM

Q1-FY26 – ROBUST START TO ANNUAL IPO STORY

In FY25, IPO collections touched ₹1.83 Trillion. In Q1-FY26, a total of 15 IPOs collected ₹29,652 Crore. Incidentally, the entire first quarter IPO story was concentrated in May and June, with April being a tepid month Here is a summary of the IPO story in Q1-FY26.

• A total of 15 IPOs in Q1-FY26 raised ₹29,652 Crore on the IPO mainboard. We have only considered IPOs that are already listed. Out of the 15 IPOs in Q1FY26; there was just 1 IPO in April, while the remaining 14 IPOs were distributed between May and June 2025.
• Out of the 15 IPOs that listed in FY25, a total of 13 IPOs gave positive returns while 2 IPOs gave negative returns. In some cases, the time period is also too short. These are point-to-point returns and not annualized returns.
• What about overall subscription levels. Against the base issue size of ₹29,652 Crore, total interest worth ₹4,94,002 Crore was received. That translates into average oversubscription of 16.66 times in Q1FY26.
• Were IPOs a good investment idea in Q1FY26? Had an investor got allotment of one lot in each of the IPOs, the IPO portfolio returns across these 15 IPOs would have been 8.77%, which is attractive, considering that these are one-quarter returns.

Let us turn to the 10 best IPOs by returns and subscriptions.

BEST IPOS BY TOTAL RETURNS IN Q1FY26

Here are the 10 best IPOs of Q1FY26 based on total returns post listing.

Issuer Company	Listing Date	Issue Size (₹ in Crore)	Subscription Ratio (X)	Issue Price (₹)	Market Price (₹) #	Absolute Returns (%)
Prostarm Info Systems	29-May-25	168.00	96.68	105	149.60	42.48%
Scoda Tubes Ltd	30-May-25	220.00	57.37	140	192.85	37.75%
Ellenbarrie Industrial Gases	26-Jun-25	852.53	22.19	400	525.55	31.39%
Globe Civil Projects Ltd	26-Jun-25	119.00	80.97	71	89.99	26.75%
Sambhv Steel Tubes	27-Jun-25	540.00	30.33	82	97.58	19.00%
Belrise Industries Ltd	23-May-25	2,150.00	43.14	90	102.70	14.11%
HDB Financial Services Ltd	27-Jun-25	12,500.00	17.65	740	840.90	13.64%
Oswal Pumps Ltd	17-Jun-25	1,387.34	34.42	614	671.50	9.36%
Ather Energy Ltd	30-Apr-25	2,981.06	1.50	321	336.45	4.81%
Aegis Vopak Terminals	28-May-25	2,800.00	2.20	235	243.75	3.72%

Data Source: NSE (# – Price on 03-Jul-25 – 12.30 PM)

Here are some quick findings.

• How did arithmetic averages of returns look like in Q1FY26? The top 10 companies by returns generated average point-to-point returns of 20.30%. However, had you been unlucky and selected the 5 worst IPOs, average returns would have been -6.11%.
• How did the top and bottom return companies fare on subscription ratio? The top 10 companies had average subscription of 38.7 times while the bottom 5 by returns had average subscription of 37.0 times. There is an individual skew in this.

Smaller sized IPOs have done better in terms of returns, but this is a time frame of less than 3 months, so it would not give a fundamental view.

BEST IPOS BY SUBSCRIPTION RATIO IN Q1FY26

Here are the 10 best IPOs of Q1FY26 by subscription ratio.

Issuer Company	Listing Date	Issue Size (₹ in Crore)	Subscription Ratio (X)	Issue Price (₹)	Market Price (₹) #	Absolute Returns (%)
Borana Weaves Ltd	22-May-25	144.89	147.85	216	221.70	2.64%
Prostarm Info Systems	29-May-25	168.00	96.68	105	149.60	42.48%
Globe Civil Projects Ltd	26-Jun-25	119.00	80.97	71	89.99	26.75%
Scoda Tubes Ltd	30-May-25	220.00	57.37	140	192.85	37.75%
Belrise Industries Ltd	23-May-25	2,150.00	43.14	90	102.70	14.11%
Oswal Pumps Ltd	17-Jun-25	1,387.34	34.42	614	671.50	9.36%
Sambhv Steel Tubes	27-Jun-25	540.00	30.33	82	97.58	19.00%
Indogulf Cropsciences Ltd	30-Jun-25	200.00	27.17	111	111.60	0.54%
Ellenbarrie Industrial Gases	26-Jun-25	852.53	22.19	400	525.55	31.39%
HDB Financial Services Ltd	27-Jun-25	12,500.00	17.65	740	840.90	13.64%

Data Source: NSE (# – Price on 03-Jul-25 – 12.30 PM)

Here are some of our key inferences.

• The ranking by subscription is biased in favour of smaller IPOs. For instance, if you look at the average IPO size of the top 5 ranked by subscription ratio, it was just ₹560 Crore. The top 8 by subscription ratio had an average issue size of ₹616 Crore. Interestingly, the average size of all 15 IPOs in FY25 was ₹1,977 Crore.
• Did companies with highest subscription ratio also score high on returns? The top 10 companies by subscription ratio had average returns of 19.8%, while for the top 5 companies by subscription, average returns were 24.7%. The link does look nebulous.

Let us finally look at the IPOs that made the biggest wealth impact.

BEST IPOS BY WEALTH IMPACT IN Q1FY26

A small IPO may have good subscription standalone, but its impact on broad-based wealth creation is limited. If we look at the 15 IPOs in Q1FY26, they raised ₹29,652 Crore and resulted in market cap accretion of ₹32,252 Crore. The net value accretion is ₹2,600 Crore. Now which companies created this ₹2,600 Crore of value accretion. HDB Financial Services alone accounted for 66% of this wealth accretion. If you consider the top-3 by value accretion (HDB, Belrise, and Ellenbarrie), they have contributed to 88% of the overall wealth accretion. For the retail investor; that is what is material!