The year 2025 will be etched in India's financial history as a period of frenzied initial public offering (IPO) activity and unprecedented capital raising. However, beneath the surface of this blockbuster year lies a sobering reality check for investors. Data reveals a stark divergence between initial listing-day euphoria and sustained performance, with nearly half of the companies that debuted this year now trading below their issue prices.
The Hype Versus The Reality
The sheer scale of activity was historic. In the last twelve months, a staggering 344 companies launched IPOs, collectively mobilising over ₹1.75 lakh crore from the primary market. This figure represents the highest level of equity capital ever raised in India. Alongside these mainboard listings, 267 companies tapped the SME platform, raising an additional ₹11,429 crore.
Initial enthusiasm was high. Out of the 103 companies that debuted on exchanges this year, 69 listed above their IPO prices. However, this early momentum proved fleeting for a significant number. Fast forward to the present, and only 54 stocks are trading above their IPO prices, while 47 have slipped below. This highlights a worrying trend where the initial 'pop' is increasingly a short-lived event.
Winners, Losers, and The Size Factor
A clear pattern emerged in the performance data. The worst-performing IPOs of 2025 were predominantly from companies with smaller issue sizes, typically below ₹1,000 crore. Shares of Glottis plummeted 52% from its issue price of ₹129. Gem Aromatics fell 48%, while VMS TMT declined 46%. Other significant losers included BMW Ventures (down 41%), Arisinfra Solutions and Jaro Institute (both down 39%), and Om Freight Forwarders (down 28%).
In stark contrast, larger, more established offerings generally fared better. Six of the year's top-performing IPOs had issue sizes exceeding ₹1,000 crore. E-commerce giant Meesho, with a ₹5,421 crore IPO, is trading over 78% above its issue price. Similarly, Billionbrains Garage Ventures, the parent of brokerage Groww, is up around 65% from its ₹6,632 crore IPO level.
The year's mega-listings, including Tata Capital, HDB Financial Services, LG Electronics India, and ICICI Prudential Asset Management, all opened higher. Yet, their post-listing journeys varied. While LG Electronics India and ICICI Prudential Asset Management continued to advance, HDB Financial Services saw gains capped at around 2%.
At the very top, Stallion India Fluorochemicals surged over 146% from its IPO price, leading the pack. It was followed by Aditya Infotech (up 122%) and electric vehicle maker Ather Energy (which climbed 121%).
Expert Views: A Market Maturing, Not Breaking
Market participants interpret this mixed performance as a sign of a maturing primary market rather than structural weakness. Sandeep Jethwani, Co-Founder of Dezerv, noted, "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... When outcomes are this uneven, averages stop being helpful and participation alone stops being a strategy."
Swapnil Aggarwal, Director at VSRK Capital, emphasised the year's robust activity and record fundraising. He stated that sustained demand placed India among the top global markets for IPO capital raised. He added that a significant number of new listings continue to trade above issue prices, reflecting healthy post-listing performance driven by strong investor confidence.
Echoing this sentiment, Pranay Aggarwal, Director and CEO of Stoxkart, said 2025 demonstrated increasing investor maturity. "IPO activity was driven more by quality than quantity," he observed, noting that more moderate listing-day gains reflected better pricing discipline rather than weak demand.
The Road Ahead for Investors in 2026
The message for investors as 2026 approaches is clear. The era of easy, guaranteed listing gains is fading. Selectivity will be paramount. While India's IPO engine remains fundamentally strong, the challenge will be to identify businesses with sound fundamentals, reasonable valuations, and clear long-term growth visibility. The data from 2025 underscores that in a maturing market, thorough due diligence is no longer optional—it is essential for investment success.
