Mumbai: 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.
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