Barclays India chief says IPO euphoria prompting some companies to 'misprice' issues

India's IPO market euphoria is prompting some companies to misprice their initial public offerings, Barclays India CEO Pramod Kumar told Bloomberg Television in an interview.

2025 has been a record breaking year for India's IPO market with Nephrocare Health becoming the 100th issue to open for subscription this year. ICICI Prudential AMC, which opens for subscription on Friday, will become the 101st IPO of the year. Fundraising is also nearing the mark of ₹2 lakh crore.

"When you see such frenzy, there is always a likelihood of some companies mispricing their IPOs and therefore their stocks not doing well," Kumar told Bloomberg Television, adding that as long as the majority issues continue to do well, the market will support the primary offerings.

Kumar also advised investors to tread with caution in the IPO market, track institutional participation as anchor investors and fundamentals of the company before investing.

As per data compiled by CNBC-TV18, nearly a third of the 90-odd IPOs that have listed so far, are trading below their issue price.

Kumar went on to add that global funds may return to Indian equities next year if the US economy slows down, while domestic institutions and retail investors will continue to deploy capital. Deleveraged and healthy balance sheets are also additional factors that will support fundraising activity.