Retail investors have poured a record Rs 34,840 crore into the primary market so far in FY26, marking the highest-ever participation by individual investors in new issues.
The surge in retail inflows has come at a time when secondary markets have seen outflows and muted returns, prompting investors to look toward IPOs and other primary-market offerings for better opportunities. Strong subscription numbers in several recent IPOs—particularly in the SME segment—have further fuelled interest among retail participants.
Market experts say the trend reflects growing confidence in India’s new-issue pipeline, aided by improved disclosure norms, digital access to IPO applications, and expectations of listing gains. However, they also caution that sustained retail participation will depend on the quality of companies coming to market and the overall earnings outlook.
Despite record inflows, analysts advise retail investors to remain selective, as elevated valuations and uneven post-listing performance could pose risks in a volatile market environment.
