The year 2025 has witnessed an unprecedented euphoria among retail investors for new stock market listings, particularly in the small and medium enterprise (SME) segment. Despite the Securities and Exchange Board of India (SEBI) tightening norms for such offerings, the primary market has seen a blockbuster year, powered by investors chasing the dream of multibagger returns on listing day.
Record-Breaking Year for Indian IPOs
The Indian primary market has scaled new heights in 2025. Data reveals that a staggering 365 initial public offerings (IPOs) have raised ₹1.95 trillion year-to-date, already surpassing the previous calendar year 2024's record of ₹1.90 trillion raised through 336 issues. Of these 365 IPOs, a significant majority—260 issues—were from the SME platform, while 106 were listed on the main board. The capital raised through mainboard IPOs stood at ₹1.83 trillion, slightly higher than the ₹1.80 trillion recorded in the preceding year.
The Retail Frenzy Behind SME IPO Oversubscriptions
Driven by the allure of quick, substantial gains, retail investors have flooded the SME IPO segment. According to data from Trendlyne, 61 out of the 260 SME IPOs in 2025 have witnessed astronomical subscription levels, ranging from 100 to 1,000 times. This highlights a massive disconnect between the hype during the subscription period and the eventual post-listing performance for many stocks.
Austere Systems led this frenzy, with its IPO being subscribed a massive 1,000 times. The retail portion alone was oversubscribed 1,449 times. The stock listed at a 37.4% premium in September. Exato Technologies saw its issue subscribed 881 times, debuting at a nearly 90% premium in December. Fabtech Technologies Cleanrooms was oversubscribed 688 times (950 times in the retail segment) and listed at a 90% premium.
Other standout oversubscriptions include TechD Cybersecurity (668 times overall, with the retail portion at 964 times) and Chamunda Electrical (680 times). The latter, despite a strong 90% premium debut, failed to hold gains and is now trading just 2% above its issue price, exemplifying the volatility and risk.
Performance Reality Check: Winners and Losers
While the subscription numbers paint a picture of rampant optimism, the post-listing performance tells a more nuanced story. Of the 61 highly oversubscribed IPOs, 37 are currently trading above their issue prices. Within this group, 15 stocks have delivered spectacular multibagger returns, with gains soaring between 100% and 528%.
Anondita Medicare tops the gainers' list, with shares trading a phenomenal 528% above its IPO price. Tankup Engineers follows, rewarding investors with a 405% return. Other notable multibaggers include Fabtech Technologies Cleanrooms, TechD Cybersecurity, Exato Technologies, and Parmeshwar Metal, all up between 100% and 250%.
However, this also implies that a significant number of these hyped issues have failed to live up to expectations, with many eroding investor wealth after listing. This growing divergence underscores the high-risk nature of betting on heavily oversubscribed IPOs based solely on subscription hype.
Market Volatility Fuels Primary Market Rush
Analysts note that heightened volatility in the secondary (stock) market has further pushed retail investors toward the primary market, viewing IPOs as a potential avenue for quick profits. This behavior, combined with success stories of past multibaggers, has created a self-fulfilling cycle of demand, making 2025 another landmark year for listings. However, experts consistently advise caution, recommending that investors conduct thorough due diligence and consult certified financial experts before making any investment decisions in this volatile segment.
