Nithin Kamath Points to Strong IPO Rally Amid Broader Market Pressures

Primary Market Strength

Recent mainboard IPOs are bucking broader market trends and delivering strong gains for investors. Data cited by Zerodha founder and CEO Nithin Kamath shows that 67.2% of 125 IPOs listed between October 2025 and September 2026 traded above their issue prices as of October 6. These newly listed stocks recorded a median return of 24.7%.

Market Contrast

Kamath noted an unusual divergence between the primary and secondary markets, describing IPOs as a full-on party while the wider market faces falling prices and bear-market pressures. Detailed figures show that 17.6% of the IPOs traded up to 25% above issue prices, 18.4% gained between 25% and 50%, another 17.6% rose between 50% and 100%, and 13.6% more than doubled.

Past Cohorts

Performance in the latest group marks a sharp improvement over earlier periods. Among 95 mainboard IPOs listed from October 2024 to September 2025, only 47.4% traded above issue prices with a negative median return of 9.4%. An earlier cohort from October 2023 to September 2024 saw 54.5% trading above issue prices and a median return of 8.6%.

Context

The primary stock market refers to companies issuing new shares to the public through initial public offerings, while the secondary market is where existing shares are traded among investors. A stark gap between the two highlights how investor appetite for new company listings can remain robust even when general stock market sentiment turns cautious or weak.