IPO review: Only half of total listings end positively in '25— Check details
India's 2025 IPO market saw record fundraising but a reality check emerged as many stocks failed to sustain initial hype. While 69 companies listed above issue prices, only 54 remained positive by year-end. Experts advise investors to focus on fundamentals and track post-listing performance, especially for smaller issues, as quality is now being differentiated from mere sentiment.
Year 2025 was a blockbuster year for India’s primary market, delivering record fund raising and stellar listing-day rallies. However as the calendar draws to a close, the IPO boom is facing a reality check with stocks revealing a contrast between early hype and long term returns.Data, cited by ET shows that while enthusiasm ran high at the time of listing, not every stock could sustain investor’s interest. Of the 103 companies that went public during 2025, 69 debuted above their IPO prices and 33 listed below. But by December 26, that picture had shifted drastically as only 54 stocks were still trading above their issue prices while 47 had slipped into negative territory.Trends suggest that listing-day gains have not translated into durable valuations for a large section of the new entrants.
“Many big-name IPOs saw strong initial enthusiasm but failed to sustain valuations post-listing,” Dev Chandrasekhar, partner at Transcendum, told ET. “Without fresh capital for growth initiatives, these companies must rely entirely on operational improvements to justify premium valuations, a tougher ask in competitive markets.”Despite the uneven outcomes, 2025 was a landmark year for capital mobilisation.
Mainboard IPOs raised an unprecedented Rs 1.75 lakh crore, the highest ever for India’s equity markets. The SME platform also saw heavy activity, with 267 companies together raising Rs 11,429 crore.
Underachievers
A closer look at the underperformers highlights a pattern. The 10 worst-performing IPO stocks of the year were all issues sized below Rs 1,000 crore. Many of these companies lost between 30% and even more than 50% from their offer prices.
Glottis shares have fallen 52.78% from their IPO price of Rs 129, Gem Aromatics is down 48.34%, and VMS TMT has declined 46.25%.On the other end of the spectrum, larger offerings have shown greater resilience. Six of the best-performing IPOs of 2025 had issue sizes exceeding Rs 1,000 crore. Meesho, which raised Rs 5,421 crore, is trading more than 78% above its issue price. Billionbrains Garage Ventures, the parent company of brokerage Groww, floated a Rs 6,632 crore IPO and is currently up 65%, ET reported.
Toppers
Performance among the biggest issues of the year has been mixed, however. Tata Capital, HDB Financial Services, LG Electronics India and ICICI Prudential Asset Management all listed at a premium. While LG and ICICI Prudential Asset Management extended their gains after relatively strong debuts, HDB Financial Services saw its upside narrow to around 2% after opening nearly 14% higher on listing day.“The market is beginning to differentiate between quality and hype,” said Ganesh Jagdishen, chief executive of Plutus Global, a Mumbai-based investment banking and M&A advisory.