Is 2025's Hot IPO Market Delivering Cold Returns?
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Synopsis
As India experiences a record surge in IPOs, the reality is stark: nearly half of the 2025 listings are trading below their issue prices. Discover why this disparity between initial excitement and long-term performance has investors questioning valuations and expectations in this revealing analysis of the IPO landscape.
Key Takeaways
- Nearly 50% of the IPOs from 2025 are trading below their issue prices.
- A total of 344 companies entered the stock market, raising over Rs 1.75 lakh crore.
- Only 54 IPO stocks are currently above their issue prices.
- The worst-performing IPOs are mainly smaller issues.
- Larger IPOs have shown relatively better returns and drew significant investor interest.
Mumbai, Dec 30 (NationPress) Following a year filled with continuous IPO launches and unprecedented fundraising, India’s primary market is now facing a reality check.
The year 2025 is poised to be remembered as one of the busiest years for initial public offerings, yet the performance of many recently listed stocks has not matched the initial excitement observed on their listing day.
Recent data indicates that nearly 50% of the companies that went public this year are currently trading below their issue prices.
This stark disparity between strong listing-day performances and poor long-term results has sparked renewed discussions regarding IPO valuations and investor expectations.
Over the last year, a total of 344 companies entered the stock market, collectively raising more than Rs 1.75 lakh crore.
Among the 103 companies that debuted on the exchanges in 2025, a majority of 69 stocks listed above their IPO prices, while 33 opened below their issue levels.
However, this early enthusiasm was not sustainable for many stocks. Currently, only 54 IPO stocks are trading above their issue prices, while 47 have dropped below, highlighting the uneven performance post-listing despite a record-breaking fundraising year.
The worst-performing IPOs were predominantly smaller issues, particularly those with sizes under Rs 1,000 crore.
Shares of Glottis have plummeted 52% from their issue price of Rs 129. Gem Aromatics has seen a decline of 48%, while VMS TMT has dropped 46% from its IPO level.
BMW Ventures has decreased by 41%, with Arisinfra Solutions and Jaro Institute each down 39%.
Shares of Om Freight Forwarders are currently trading around 28% below their issue price.
In comparison, larger IPOs have shown relatively better returns. Six of the top-performing IPOs of 2025 had sizes exceeding Rs 1,000 crore.
The year also featured several mega listings that drew significant investor interest. Among the four largest IPOs of 2025—Tata Capital, HDB Financial Services, LG Electronics India, and ICICI Prudential Asset Management—all stocks debuted at a premium.
However, their post-listing performance varied. While LG Electronics India and ICICI Prudential Asset Management continued to increase, HDB Financial Services saw its gains restricted to approximately 2%.
Point of View
It’s imperative to approach the current IPO landscape with a balanced perspective. While 2025 has indeed been a remarkable year for fundraising, the stark reality of many stocks trading below their issue prices raises valid concerns regarding investor sentiment and market stability. We must navigate these challenges with caution and insight, keeping our audience informed and prepared.
NationPress
03/01/2026
Frequently Asked Questions
What percentage of IPOs are currently below their issue price?
Approximately 50% of the IPOs launched in 2025 are trading below their issue prices.
What factors are affecting IPO performance?
The disparity between initial listing-day excitement and long-term performance raises concerns over IPO valuations and investor expectations.
How many IPOs debuted in 2025?
In 2025, a total of 103 companies debuted on the exchanges.
Which IPOs are performing the worst?
The worst-performing IPOs are primarily smaller issues, especially those with sizes below Rs 1,000 crore.
What has been the impact of larger IPOs?
Larger IPOs have generally delivered better returns compared to smaller ones, with several mega listings attracting strong investor interest.
