IPO boom faces reality check as nearly half of 2025 listings slip below issue price
India's primary market experienced a record year in 2025, but many companies that went public are now trading below their initial offer prices. This highlights a gap between initial excitement and lasting investor confidence. While some large IPOs performed well, smaller ones struggled.
Mumbai: After euphoria swept India's primary market to a record in 2025, it faces a reality check. Nearly half the companies that went public this year are trading below their initial public offer (IPO) price, highlighting a disconnect between listing-day enthusiasm and sustained investor interest.
Of 103 companies that debuted on the bourses, 69 listed above their IPO prices, while 33 opened below. However, this initial momentum proved short-lived for several of them. By year-end, 54 stocks are trading above their issue prices, as of December 26, while 47 are trading below.
"Many big-name IPOs saw strong initial enthusiasm but failed to sustain valuations post-listing," said Dev Chandrasekhar, partner at Transcendum, a valuation branding advisory. "Without fresh capital for growth initiatives, these companies must rely entirely on operational improvements to justify premium valuations, a tougher ask in competitive markets."
Mainboard IPOs this year raised an unprecedented ₹1.75 lakh crore, marking the highest level of equity capital mobilisation on record, while 267 companies raised ₹11,429 crore on the small and medium enterprises (SME) platform.
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Rewarding Quality
The 10 biggest laggards among stock market debutants this year have been shares of companies with IPO sizes below ₹1,000 crore. Several stocks in the bottom cohort are down roughly between 30% and over 50% from their IPO levels. Glottis shares were down 52.78% from their IPO price of ₹129. Gem Aromatics fell 48.34%, and VMS TMT dropped 46.25%.
The IPO size of six out of the top-performing Dalal Street starters in 2025 have been over ₹1,000 crore. For instance, Meesho, which floated a ₹5,421 crore IPO, is over 78% above its issue price. Brokerage Groww's parent Billionbrains Garage Ventures, the ₹6,632 crore IPO of which was a success, is trading 65% above its issue price. Shares of companies that floated the largest IPOs have held on to gains, though the extent of their performance has been mixed. Among the four biggest issues in 2025, Tata Capital, HDB Financial Services, LG Electronics India and Asset Management opened higher on listing day, but their subsequent performance diverged. While LG and ICICI Prudential witnessed relatively stronger listings and continued to advance, HDB's gains were capped at around 2% after opening nearly 14% on debut.
Agencies