IPO 2026: Is the IPO Boom a Goldmine or a Red Flag for Retail Investors?

• Approximately 100 companies plan to raise Rs 1.4 lakh crore through IPOs in 2026, but listing gains have significantly decreased.
• Average IPO returns in 2025 were 68% lower than the previous year, yielding only 9.55% profit compared to Nifty 50's 10.5%.
• High IPO prices benefit large investors, leaving minimal listing gains for retail investors, making allotment a 'lottery'.
• Experts advise caution, with investor Gopal Sharma suggesting avoiding 7 out of 10 IPOs due to potential listing losses (e.g., Paytm, Reliance Power).
• SEBI study reveals 23% of investors hold loss-making shares, and FOMO drives irrational IPO investments; experts recommend long-term perspective and expert advice.

Why It Matters: Upcoming IPOs in 2026 demand extreme caution from retail investors due to diminishing listing gains and high risks.