The impact of secondary market trends on IPOs
The relationship between India’s primary and secondary markets reveals a clear pattern: when market conditions are strong, companies flood the IPO space with increasingly optimistic valuations, historically serving as a reliable indicator of market peaks. Despite recent lukewarm secondary market performance, the primary market continues to show resilience, with 2025 IPO activity remaining robust even as first-day listing gains have nearly halved from the previous year’s highs.
