Archive · 14 Aug 2025
Study: Many New IPOs Fail to Deliver Long-Term Gains
A study looked at many new companies that went public, or sold their stock to the public, between 2020 and June 2025.
The study found that most of these companies didn't make investors much money in the long run.
While some investors did well initially, a lot of people lost money after the IPO.
Companies that made a profit or had a plan to make money, did better.
But companies that spent a lot of cash without a clear plan to make money often lost value for investors.
It's important to pick the right company to invest in.
Study analyzed 25 new-age companies that went public between May 2020 and June 2025.
Only 36% of IPO investors generated positive returns, and 32% of post-IPO investors saw gains.
Companies like Zomato and Ixigo outperformed peers, while some, like Ola Electric, underperformed.
High retail interest often led to short-lived listing gains.
Companies with clear paths to profitability showed better long-term performance.
- Who
- Investors in new-age companies, the study by Client Associates.
- What
- A study on the long-term performance of new-age companies that went public.
- When
- The study analyzed companies listed between May 2020 and June 16, 2025.
- Where
- Mumbai, India
- Why
- To assess the long-term wealth creation for investors in new-age IPOs.
Long-Term Investor Returns
Company Performance
Investment Outcomes
Long-Term Investor Returns
Majority of investors did not generate long-term gains.
Company Performance
A minority of companies like Zomato delivered consistent performance.
- Companies Analyzed
- 25
- Time Period
- May 2020 - June 2025
- IPO Investor Positive Alpha
- 36%
- Post-IPO Investor Positive Alpha
- 32%
- Example Outperformers
- Zomato, Ixigo
- Example Underperformer
- Ola Electric
