India’s primary market, which saw a flurry of IPO launches and fundraising records in 2025, is now experiencing a sobering reality check. Despite the high activity in initial public offerings, many newly listed stocks are currently trading below their issue prices. This discrepancy between strong listing-day gains and weak long-term performance is prompting concerns about IPO valuations and investor expectations.
In the past year, 344 companies entered the stock market, collectively raising over Rs 1.75 lakh crore. Out of the 103 companies that debuted in 2025, 69 listed above their IPO prices, while 33 opened below. However, the initial enthusiasm has waned for numerous stocks, with only 54 IPO stocks currently trading above their issue prices, while 47 have fallen below, highlighting the uneven post-listing performance despite a successful fundraising year.
Notably, the worst-performing IPOs were mostly from smaller issues, particularly those with issue sizes below Rs 1,000 crore. Companies like Glottis, Gem Aromatics, and VMS TMT have seen significant declines from their IPO levels. On the other hand, larger IPOs with issue sizes exceeding Rs 1,000 crore have shown relatively better returns, with six of the top-performing IPOs falling into this category.
The year also witnessed mega listings such as Tata Capital, HDB Financial Services, LG Electronics India, and ICICI Prudential Asset Management, all of which debuted at a premium. While some, like LG Electronics India and ICICI Prudential Asset Management, continued to perform well post-listing, others like HDB Financial Services saw more modest gains.
