Archive · 13 Aug 2025
Tech IPOs: Client Associates Finds Early Exits Best for Returns
A study looked at how tech companies performed after they went public.
The best time to sell was after the lock-in period expired, according to the study.
Some companies did well at first, especially those popular with regular investors, but many struggled later on.
High-profile IPOs like Paytm and Ola Electric disappointed.
It highlights that long-term success is challenging.
Pre-IPO investors saw optimal returns by exiting during lock-in periods.
Study analyzed 25 tech-led companies listed since 2021.
Companies with strong retail appeal had strong short-term returns.
Paytm and CarTrade shares dropped significantly post-listing.
Only nine of the 25 companies generated positive alpha long-term.
- Who
- Pre-IPO and post-IPO investors
- What
- Performance of tech-led IPOs
- When
- Since 2021
- Where
- Public markets
- Why
- To analyze investment returns
Short Term vs. Long Term Returns
Long Term versus Short Term
Performance
Short Term vs. Long Term Returns
Immediate market gains driven by retail appeal
Long Term versus Short Term
Long-term success linked to sustained business fundamentals.
Investment Period
Short Term vs. Long Term Returns
Short-term high returns
Long Term versus Short Term
Long-term decline in returns
- Companies Analyzed
- 25
- Lock-in Period
- 6 months
- Nykaa rise
- 320%
- Outperforming Companies
- 9 of 25
- Study Period
- Since 2021
Sources
Company Outsider | The IPO Crescendo: Are these companies 'growing up' or just 'growing impatient?'
Beyond the ticker: Why unlisted stocks are stealing the spotlight
Sectors that are leading 2025 IPO charge
Should Indian stock market investors be worried about the IPO boom? Explained
Over 40 pc of pre-IPO investors generated positive alpha from new-age firms in 5 years
Pre IPO, IPO returns: How 25 new age stocks fared against market benchmarks
Only 36% of new-age IPOs outperform market long-term: Client Associates study
