Archive · 14 Aug 2025
New-Age IPOs Fail to Deliver Long-Term Investor Gains
Some new companies that sold stocks to the public, called IPOs, haven't done so well.
A study looked at 25 of these companies between 2020 and 2025.
It found that most investors didn't make money, even though the stocks sometimes went up at first.
Some companies did well, but others lost money.
The companies that made money easily, did better than the ones that were losing money, especially ones like Ola Electric and Paytm, that did not do so well.
Study analyzed 25 new-age Indian companies that went public between May 2020 and June 2025.
Only 36% of IPO and 32% of post-IPO investors generated positive returns.
Pre-IPO investors saw better results, especially when exiting early.
Companies like Ixigo, Zomato, and PolicyBazaar performed well.
Ola Electric, Paytm, and others struggled after IPO.
- Who
- Client Associates conducted the study.
- What
- Analysis of the long-term performance of new-age IPOs.
- When
- Companies tracked between May 2020 and June 2025.
- Where
- Mumbai
- Why
- To analyze the long-term wealth creation for investors.
Poor Performance
Success Stories
Performance Drivers
Poor Performance
Many IPOs underperformed due to factors like overvaluation and loss of market share.
Success Stories
Some IPOs performed well due to clear profitability paths and revenue growth.
- Companies Analyzed
- 25
- Time Period
- May 2020 - June 2025
- IPO Investors Positive Alpha
- 36%
- Post-IPO Investors Positive Alpha
- 32%
- Leading Performers
- Ixigo, Zomato, PolicyBazaar
- Laggards
- Ola Electric, Paytm
