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IPO Reality Check: Why Half of 2025's Hot Listings Are Now Cold

It's been a massive year for IPOs, but the party hasn't lasted for many new stocks. Data reveals a sobering picture where almost half of 2025's listings are now trading below their issue price. While big names like Tata Capital had strong debuts, smaller companies have seen their shares plummet by up to 52%. This gap between initial hype and long-term performance is making investors question if IPO valuations were just too high.

Key Points: 2025 IPO Performance Shows Half of New Listings Below Issue Price

  • 2025 saw 344 IPOs raise over ₹1.75 lakh crore in a record year
  • Nearly half of the 103 new listings now trade below their initial issue price
  • Smaller IPOs under ₹1,000 crore suffered the worst declines post-listing
  • Larger mega-listings like Tata Capital showed more resilience after debut
2 min read

Hot IPO year, cold returns: About 50 pc of 2025 listings below issue price

Nearly 50% of 2025's IPOs trade below issue price despite record fundraising. Discover which stocks fell and why large issues fared better.

"This sharp contrast between strong listing-day gains and weak long-term performance has raised fresh questions over IPO valuations. - Market Analysis"

Mumbai, Dec 30

After a year packed with non-stop IPO launches and record-breaking fundraising, India's primary market is now showing signs of a reality check.

While 2025 will go down as one of the most active years for initial public offerings, the performance of many newly listed stocks has failed to live up to the excitement seen on listing day.

Data shows that nearly half of the companies that went public this year are now trading below their issue prices.

This sharp contrast between strong listing-day gains and weak long-term performance has raised fresh questions over IPO valuations and investor expectations.

Over the past 12 months, as many as 344 companies entered the stock market and together raised more than Rs 1.75 lakh crore.

Out of 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 did not last for many stocks. At present, only 54 IPO stocks are trading above their issue prices, while 47 have slipped below, showing how uneven post-listing performance has been despite a blockbuster year for fundraising.

The worst-performing IPOs of the year were mostly from smaller issues, particularly those with issue sizes below Rs 1,000 crore.

Shares of Glottis have fallen 52 per cent from their issue price of Rs 129. Gem Aromatics is down 48 per cent, while VMS TMT has declined 46 per cent from its IPO level.

BMW Ventures has dropped 41 per cent, while Arisinfra Solutions and Jaro Institute are down 39 per cent each.

Shares of Om Freight Forwarders are trading around 28 per cent below their issue price.

In contrast, larger IPOs have delivered relatively better returns. Six of the best-performing IPOs of 2025 had issue sizes of more than Rs 1,000 crore.

The year also witnessed several mega listings that attracted strong investor interest. Among the four largest IPOs of 2025 -- Tata Capital, HDB Financial Services, LG Electronics India and ICICI Prudential Asset Management -- all stocks listed at a premium on debut.

However, their journeys after listing were mixed. While LG Electronics India and ICICI Prudential Asset Management continued to move higher, HDB Financial Services saw its gains limited to around 2 per cent.

- IANS

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Reader Comments

S
Sarah B
As a new investor, this is quite disheartening. I invested in two IPOs this year hoping for long-term growth. One is down 15%. It feels like the market is designed for quick profits for big players, not for retail investors like me.
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Rohit P
The merchant bankers and promoters are to blame. They price these IPOs at sky-high valuations knowing retail investors will get excited. The "listing day pop" is just a trap. After that, the real story begins. SEBI should look into this more strictly.
A
Ananya R
Not surprised at all. My father always said, "Invest in businesses you understand, not in hype." The solid companies like Tata Capital and ICICI Pru will hold value. The rest are just cashing in on the market sentiment. Stick to quality.
M
Michael C
Interesting data. It mirrors global trends where IPO frenzy often leads to a correction. The key takeaway for Indian investors should be patience and focus on fundamentals, not the short-term listing gains. The market eventually rewards real business performance.
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Kavya N
This is a much-needed reality check! So many friends were applying for every IPO like it was a lottery ticket. The market is teaching a good lesson. Maybe now people will focus on SIPs and solid blue chips instead of speculative bets. 👍

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