Retail investors are becoming selective with IPOs after a sharp reversal from 2024-2025 enthusiasm. Of 18 mainboard IPOs launched between January and March 2026, ten failed to achieve full retail subscription, signaling a fundamental shift in investor appetite. Market weakness and stretched valuations are driving this pullback, with the Sensex and Nifty declining nearly fifteen percent during the quarter. While institutional buyers continue supporting listings, retail demand has become increasingly concentrated in fundamentally stronger offerings. Twelve of eighteen IPOs opened below issue prices, though most recovered by mid-April. Experts attribute this pattern to valuation fatigue and tightening systemic liquidity, suggesting retail participation will remain selective until market volatility subsides and earnings visibility improves.
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