The year 2025 has etched its name in the history of India's capital markets as a blockbuster period for initial public offerings (IPOs). The primary market witnessed unprecedented activity, with companies mobilizing a colossal sum of money from the public. However, beneath the surface of this record-breaking fundraising lies a cautionary tale for investors, as the post-listing performance of many highly sought-after new shares has been disappointing.
A Record-Shattering Year for Fundraising
Data reveals that 103 companies successfully launched their mainboard public offers in 2025, collectively raising an all-time high of ₹1,75,901 crore. This impressive figure comfortably surpasses the previous record set in 2024, when 91 IPOs had mobilized ₹1,59,784 crore. While the overall public response remained robust, analysts at primedatabase.com note that it was somewhat poorer compared to the fervor seen in the preceding year.
The frenzy was particularly visible in the most popular offers. According to data from Chittorgarh, the top ten most-demanded IPOs of the year each garnered bids for 44 lakh shares or more. Leading the pack was the mega ₹11,605 crore IPO of LG Electronics, which attracted a staggering 65,06,683 applications, making it the third-largest issue of the year by size.
The public offer for the new-age tech platform Meesho followed closely, receiving applications for 62,75,385 shares. The ICICI Prudential AMC IPO secured the third spot with 55,07,138 share bids. Other IPOs that saw massive investor appetite included Indo Farm Equipment, Standard Glass Lining, NSDL, Stallion India Fluorochemicals, Highway Infrastructure, Urban Company, and Quandrant Future Tek.
The Harsh Reality After the Listing Frenzy
Despite the stellar subscription numbers, the post-listing reality for investors has been sobering. Six out of the ten most-demanded IPOs have failed to sustain their listing-day gains, trading below their debut prices. This trend delivers a clear message: strong initial pops are no longer a reliable indicator of long-term wealth creation.
Some of the worst-hit names from this elite list are Highway Infrastructure and Indo Farm Equipment. Highway Infra shares, which had soared 72.50% on their listing day, have now reversed course dramatically, trading 19% below their IPO price. Indo Farm Equipment, after a 29% listing pop, is currently down 2% from its offer price.
Urban Company shares are also significantly off their highs. After a stellar 62% gain on debut, the stock now trades only 28% above its IPO price. Shares of LG Electronics, Standard Glass Lining, and Quandrant Future Tek are also trading below their listing prices.
The Silver Linings and Expert Advice
Amid the gloom, a few IPOs have delivered exceptional returns. Meesho shares continue to shine, now trading 68% above the IPO price after a 53% listing-day return. NSDL and ICICI Prudential AMC also trade substantially higher than both their offer and listing prices.
The standout performer, however, has been Stallion India Fluorochemicals. This stock debuted at a 40% premium and has turned into a multibagger, currently trading a phenomenal 171% above its offer price.
Commenting on this divergence, Harshal Dasani, Business Head at INVAsset PMS, noted that while several high-demand IPOs delivered sharp gains on debut, a meaningful portion of those gains has since eroded. He highlighted that the fact two of the top ten listings are now below their issue price shows how quickly sentiment-driven excess can unwind.
Dasani added that elevated subscription numbers and grey market premiums tend to compress future returns if a company's growth delivery falls even marginally short of sky-high projections. His advice to investors is to shift focus from momentum-chasing to valuation discipline and business resilience, emphasizing that selectivity is now more crucial than mere participation.
Looking Ahead: The Staggering IPO Pipeline for 2026
The momentum in the primary market shows no signs of abating. The pipeline for the coming year remains staggering. According to primedatabase.com, 96 companies that have already received SEBI approval are waiting to launch issues aiming to raise approximately ₹1.25 lakh crore. Furthermore, another 106 companies, looking to raise about ₹1.40 lakh crore, are awaiting regulatory approval from SEBI. Scores more are in the process of preparing their offer documents.
Pranav Haldea, Managing Director of PRIME Database Group, offers an optimistic outlook. He states that if issuers maintain valuation discipline and the secondary market remains stable, even if not overwhelmingly bullish, the next few years could potentially become a golden era for India's IPO market.
Disclaimer: This analysis is for educational purposes only. The views expressed are those of individual analysts. Investors are advised to consult with certified experts before making any investment decisions, as market conditions are dynamic and individual circumstances vary.
