Indian IPO Market 2025: Surface Boom Masks Underlying Concerns
The Indian IPO landscape has maintained its position as one of the most dynamic segments of the equity market throughout 2025. The momentum, continuing from the post-pandemic fundraising surge, has seen strong activity across both mainboard and SME segments, driven primarily by fintech companies, digital-first businesses, renewable energy firms, and consumer-facing players.
However, beneath the surface enthusiasm lies a more sobering reality that investors cannot afford to ignore.
The Stark Numbers: One-Third Listings Disappoint
Market analysis reveals that despite robust subscription numbers and apparent investor interest, only a limited number of IPOs in 2025 have created durable value. The majority have either remained stagnant or, more concerningly, listed below their issue prices.
Of the 92 mainboard listings in 2025 so far, 32 have closed below their respective issue prices on debut. This means one-third of new issuers failed to meet listing expectations, signaling rising investor caution amid valuation concerns and selective demand.
Some of the most significant debut disappointments include:
- Om Freight Forwarders debuted 33% lower
- Glottis saw an even steeper cut of 35%
- BMW Ventures listed at a 29% discount
- Arisinfra Lutions opened 21.5% below its issue price
- Jaro Institute declined 16%
- Laxmi India Finance dropped 15%
- Quality Power fell 9%
- IndiQube Space opened 8% lower
Expert Advice: Discipline Over Frenzy
As markets navigate tighter liquidity conditions and increased scrutiny of tech-heavy issuers, investors are questioning whether they should continue chasing IPOs. Market experts believe IPO investing still offers strong opportunities, but only for those willing to be disciplined, valuation-conscious, and highly selective.
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One Ltd, emphasizes that the sheer volume of IPOs in FY26 should make investors more selective, not less. "There have been a high number of IPO offerings in H1 FY26, and the numbers have only increased in Q2 FY26. Hence, in times like this, it's best to remain selective and not blanket subscribe to all IPOs," he stated.
Khan stresses the critical importance of fundamentals over market frenzy. He advises investors to only apply to IPOs backed by a strong track record, credible promoters, sectoral tailwinds, and appropriate pricing. "A great company at a not-so-great price will never be able to compound one's wealth," he warned.
Investors must compare valuation multiples such as P/E, P/S, and EV/EBITDA with listed peers rather than relying on grey-market premiums or speculative listing-gain expectations.
Framework for Smart IPO Investing
Divam Sharma, Founder and Fund Manager at Green Portfolio PMS, echoes the sentiment, describing the 2025 IPO boom as a mixed bag. "While the IPO market has been active, not every company warrants investor money. Focus on businesses offering genuine value and long-term growth rather than those simply pricing aggressively to provide exits to PE investors," he advised.
Sharma highlights non-negotiable criteria including consistent revenue growth, healthy margins, and sustainable PAT expansion at reasonable valuations. Even for tech-led or new-age companies, investors should demand clarity on growth visibility and a credible roadmap to profitability before subscribing.
For evaluating IPO-bound or unlisted companies, Sharma recommends investors assess:
- Benchmark valuations against listed peers and sector averages
- IPO probability and expected timelines
- Last funding-round valuation justification
- Shareholding patterns and corporate actions
- Reliability of available information
Ultimately, retail investors should treat unlisted and IPO opportunities as high-risk, long-horizon plays rather than quick profit bets. Well-researched, valuation-disciplined decisions prove far more rewarding than chasing sentiment-driven movements or unofficial price chatter in today's complex market environment.
