IPO investors strike gold with 7 multibagger stocks in 3 months. Did you miss the bus?

Investors who participated in IPOs that listed between July and September 2026 have seen sharp gains in a handful of stocks, with seven companies from the three-month cohort more than doubling from their issue prices, even as the broader equity market remained under pressure.

Two of these stocks gained more than 260%, while two others advanced over 150%. At the other end of the spectrum, some stocks from the same IPO cohort fell more than 50% from their issue prices.

Data covering 59 IPOs listed during July, August and September 2026 shows that the average return from issue price to September 29 stood at 36.46%. Over the same period, the Nifty 50 declined 4.82%, the Nifty Midcap 150 fell 4.05%, while the Nifty Smallcap 150 gained 0.15%.


ESDS Software Solution led the pack, surging 269.78% from its IPO issue price. Millworks Technologies gained 260.35%, while Poojaa Precision Engineering and INDO-MIM rose 167.71% and 157.54%, respectively.

Milky Mist Dairy Food, Technocraft Ventures and Xtranet Technologies also more than doubled, gaining 127.21%, 127.10% and 114.02%, respectively.

For investors who missed these issues, however, the sharp gains also shift the focus from IPO performance to what comes next. For those already invested, the question is whether stock prices have moved ahead of the underlying fundamentals.

Kranthi Bathini, director, equity strategy at WealthMills Securities, said IPOs need to be assessed on a stock-specific basis rather than as a single basket.

ESDS Software, Millworks lead IPO wealth creation

ESDS Software Solution was the strongest performer among the 59 IPOs. The stock listed at Rs 746.30 against an issue price of Rs 429 and climbed to Rs 1,586.35 by September 29, translating into a 269.78% gain from the issue price.

Millworks Technologies followed with a 260.35% return. The stock was issued at Rs 331, listed at Rs 628.90 and subsequently rose to Rs 1,192.75 by September 29.

Poojaa Precision Engineering gained 167.71%, while INDO-MIM rose 157.54%. Milky Mist Dairy Food, Technocraft Ventures and Xtranet Technologies gained 127.21%, 127.10% and 114.02%, respectively.

Bathini pointed to ESDS Software as an example of how sharply stock performance can change even after an initial rally.

“ESDS Software, which was listed with a big bank. And later on, the stock went to an all-time high, giving multifold returns. And from there onwards, after receiving the business update, the stock was in a downward cycle.”

He also cited Millworks as an example of an SME stock that delivered strong returns to early investors.

“And there are some companies, SME companies like Millworks also, which have given strong returns to their early investors. Now, in the stock market, in the initial phase, it's a voting machine, and in the long term, it is a weighing machine.”

Strong listing gains extended well beyond debut

For several of the biggest winners, the gains did not end with listing-day premiums. Their stocks continued to rise substantially after entering the secondary market.

ESDS Software listed at Rs 746.30, a 74% premium to its Rs 429 issue price, before climbing to Rs 1,586.35 by September 29.

Millworks Technologies listed at Rs 628.90, a 90% premium to its Rs 331 issue price, and subsequently rose to Rs 1,192.75.

Data compiled by: Ritesh Presswala

What next after a sharp IPO rally?

For investors who entered these stocks early, the next question is whether the gains have pushed valuations ahead of fundamentals.

Bathini said investors should wait for subsequent quarterly results before taking a longer-term investment view.

“Now, we need to see at least the next couple of quarters' results to make any standpoint on serious investment in these companies.”

For stocks that have delivered multifold returns, he said investors need to assess whether market prices have moved ahead of fundamentals.

“And if the investors have invested in these companies, which have given multifold returns, one needs to look at whether the company stock prices are ahead of their fundamentals. If they are, then taking some profit off the table is a right idea for the investors in the medium to short term, given the kind of uncertainties in the market and also the heightened volatility that we are witnessing on a regular basis.”

IPOs outperform a weak broader market

The performance of the 59-IPO basket stands out against the broader market during the same period.

From their respective issue prices to September 29, the 59 IPOs delivered an average return of 36.46%. In comparison, the Nifty 50 declined 4.82%, the Nifty Midcap 150 fell 4.05%, and the Nifty Smallcap 150 gained 0.15%.

The average return, however, masks a wide dispersion in individual stock performance. While a small group of IPOs delivered multibagger returns, several others declined sharply.

For investors considering fresh entries into stocks that have already rallied substantially, Bathini said business updates and key revenue parameters would be important factors to track.

“And to make any fresh entry, one needs to clearly look for positive signs of positive business updates, and also how the key revenue parameters are improving in these companies.”

Not every IPO investor struck gold

The other side of the performance spectrum was marked by steep declines.

Waterways Leisure Tourism fell 87.26% from its issue price by September 29, while Aastha Spintex declined 72.38%. Alpine Texworld fell 53.36% and Annu Projects declined 51.68%. Horizon Industrial Parks and Skyways Air Services were down 14.73% and 16.45%, respectively.

The wide dispersion in returns underscores the contrasting outcomes within the July-September IPO cohort. The same three-month period produced both multibaggers and steep losers.

As a result, the 36.46% average return across the 59 IPOs should not be interpreted as the return available to an investor who simply bought IPOs during the period. Individual outcomes varied significantly depending on the issue selected.

For investors sitting on substantial gains, Bathini also said profit booking could be considered when valuations move beyond rational levels, including the possibility of recovering the initial capital.

“If the valuation is beyond rational numbers, is it advisable to make a partial profit booking? At least one can take back their capital or make it as FOC—free of cost, meaning that I have taken back my capital.”

Disclosure: This article has been written by Kumar Gaurav, who is not a SEBI-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimershere