IPOs in 2025: After a year marked by relentless IPO activity and record fundraising, India’s primary market is facing a sobering reality check.
While 2025 will be remembered as one of the hottest years for IPOs, data shows that nearly 50% of companies that went public during the year are now trading below their issue prices. The divergence between listing-day excitement and sustained stock performance has raised concerns regarding valuations, underscoring how quickly sentiment can turn once the initial buzz fades. In the last 12 months alone, 344 companies went public, raising more than 1.75 lakh crore.
IPO Trends: Reality looks different
Out of 103 companies that debuted on the stock exchanges this year, 69 listed above their IPO prices, while 33 opened below their issue levels. However, this early momentum proved fleeting for many. Only 54 stocks were trading above their IPO prices, while 47 had slipped below, highlighting the uneven nature of post-listing performance despite a blockbuster year for capital raising.
The 10 worst-performing IPOs of the year were largely from companies with issue sizes below 1,000 crores. Shares of Glottis were down 52% from their issue price of 129 while Gem Aromatics fell 48% and VMS TMT declined 46% from its IPO level. BMW Ventures shed 41% from issue price, Arisinfra Solutions and Jaro Institute are down 39% each whereas, Om Freight Forwarders is down 28% from IPO price.
In contrast, larger offerings generally fared better. Six of the top-performing IPOs of 2025 had issue sizes exceeding 1,000 crores. For instance, Meesho, which floated a 5,421 crore IPO, is trading over 78% above its issue price. Brokerage Groww’s parent, Billionbrains Garage Ventures, whose IPO size was 6,632 crore, is up around 65% from its issue level.
The year also saw several mega listings that grabbed investor attention. Among the four biggest issues of 2025—Tata Capital, HDB Financial Services, LG Electronics India and ICICI Prudential Asset Management—all opened higher on listing day. However, their post-listing journeys diverged. While LG Electronics India and ICICI Prudential Asset Management delivered relatively stronger listings and continued to advance, HDB Financial Services saw its gains capped at around 2%.
At the top of the performance table, Stallion India Fluorochemicals emerged as the top gainer, surging over 146%from its IPO price. It was followed by Aditya Infotech, up 122%, and Ather Energy, which climbed 121%.
“Listing day enthusiasm has not translated into sustained returns for a large part of the market. The initial pop has increasingly become a short-lived event rather than a durable indicator of value. The dispersion beneath the surface is telling. A small set of IPOs delivered exceptional outcomes. Several struggled. Most settled into mediocrity. When outcomes are this uneven, averages stop being helpful and participation alone stops being a strategy,” said Sandeep. Jethwani, Co-Founder of Dezerv.
Fundraising
The scale of fundraising itself was historic. Mainboard IPOs in 2025 raised at an unprecedented level 1.75 lakh crore, the highest level of equity capital mobilization ever recorded in India’s primary market. Besides this, 267 companies tapped the small and medium enterprises (SME) platform, collectively raising Rs 11,429 crore.
Road ahead for the IPO market
Market participants believe the mixed performance reflects a maturing primary market rather than a sign of structural weakness. Swapnil Aggarwal, Director at VSRK Capital, said, “India’s primary market delivered a strong performance in 2025, marked by robust IPO activity and record fundraising. The year saw consistently high investor participation, with many public issues witnessing heavy oversubscription across retail, HNI and institutional categories. This sustained demand placed India among the top global markets in terms of IPO capital raised.”
He added that despite the volatility, a significant number of new listings continue to trade above their issue prices, reflecting healthy post-listing performance. According to him, the primary market benefited from strong investor confidence, effective capital formation and a supportive equity market environment throughout the year.
Echoing a similar view, Pranay Aggarwal, Director and CEO of Stoxkart, said the year demonstrated increasing maturity among investors. “The primary market in 2025 showed a healthy and mature performance, even though it was not uniformly buoyant. IPO activity was driven more by quality than quantity, with a handful of large and fundamentally strong companies attracting the bulk of investor interest,” he said. He noted that more moderate listing-day gains reflected better pricing discipline rather than any weakness in demand.
As 2026 approaches, the message for investors is clear. The era of easy listing gains is fading, and selectivity will matter more than ever. While India’s IPO engine remains strong, identifying the right businesses—with sound fundamentals, reasonable valuations and long-term growth visibility—will be the real challenge in the year ahead.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
