IPO market trends, sectoral dynamics and determinants of listing gains in India: Evidence from IPOs (2021-2025)
Keywords:
IPO underpricing, listing gains, subscription demand, hot issue market, issue size, issue price, Indian capital marketAbstract
Initial Public Offerings constitute a major mechanism for raising equity capital and creating investment opportunities in capital markets. This study examines the IPO market behaviour in India during the period between the year 2021 and 2025 using a sample of 355 IPOs. The paper analyses trends, sectoral performance, listing gains, subscription demand, issue size dynamics, month-wise issuance patterns and the influence of market conditions. Descriptive statistics, correlation analysis, multiple regression models and ANOVA tests are used to evaluate the determinants of listing gains. The findings indicate that investor subscription demand, particularly demand from qualified institutional buyers (QIBs) is the most significant driver of listing performance. Smaller issues tend to generate higher listing gains, while larger firms with higher market capitalization benefit from strong investor confidence. Sectoral analysis reveals that information technology, chemicals and metals and mining generated relatively higher listing gains during the period. Month- wise analysis suggests clustering of IPO activity in specific period consistent with “hot issue market” phenomenon but IPO month effects on listing gains are not statistically significant. Overall, the results show that IPO performance in India is predominantly demand-driven than timing-driven.
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