The Economic Times

Retail investors show increased discernment in IPO market, leading to more sober pricing

Retail investors are now more discerning in the IPO market, which is a positive development. Nearly one-third of mainboard IPOs in 2026 saw undersubscribed retail portions. Foreign investors are avoiding issues with high valuations, while domestic institutions seek larger allotments. Companies are also pricing their offerings more realistically, indicating a maturing market. This shift reduces the risk of primary and secondary market valuations decoupling.