Archive · 17 Nov 2025
India's IPO Boom Shows Uneven Investor Returns Amidst Market Buzz
Imagine a lot of companies in India are selling small pieces of themselves to people for the first time, like a big party where new things are offered.
This is called an IPO, and it's raising a lot of money, almost as much as last year.
However, not everyone who buys these new pieces is making money.
Many of these companies, after they start selling, are actually worth less than when they first offered their pieces.
About 4 out of every 10 new companies are trading for less than people paid for them.
Some have even lost more than a quarter of their value!
This means that while the companies are raising money, the people who invested in them aren't always getting rich.
But, there are some exceptions!
A few companies, like those making electric scooters and solar technology, have become much more valuable since they started selling their pieces.
India's primary market is experiencing a boom in IPO fundraising, nearing last year's record of nearly $21 billion.
Despite high fundraising activity, investor returns are uneven, with many newly listed companies underperforming the broader market.
Approximately 40% of the 108 firms tracked in the IPO index are trading below their offer price.
A dozen companies have seen declines of more than 25% since their debut.
Notable exceptions include Ather Energy and Waaree Energies, which have more than doubled in value post-listing.
- Who
- Investors in India's stock market
- What
- Uneven returns for investors in a booming IPO market, with many companies underperforming despite record fundraising.
- When
- November 17, 2025
- Where
- India's primary market
- Why
- The surge in IPO fundraising has not translated into consistent rewards for all investors, with a significant number of newly listed firms trading below their initial offer price.
Overall Market Underperformance
Notable Success Stories
Investor Returns Post-IPO
Overall Market Underperformance
Despite a surge in IPO fundraising, a significant portion of newly listed companies in India are underperforming the broader market, with many trading below their offer price.
Notable Success Stories
Certain companies, such as Ather Energy and Waaree Energies, have achieved substantial gains, more than doubling their value since listing, demonstrating that successful investments are possible.
Market Performance Metrics
Overall Market Underperformance
BSE Ltd.'s gauge for newly listed firms is set for its first year of underperformance since 2022, indicating a general trend of lagging returns for IPO investors.
Notable Success Stories
The current market activity, while raising significant capital, does not uniformly benefit all investors, as evidenced by the dozen companies down over 25% from their offer price.
- IPO Fundraising Status
- Nearing last year’s record of almost $21 billion
- Newly Listed Firms Performance
- BSE Ltd.'s gauge for newly listed firms is lagging the broader market.
- Companies Below Offer Price
- Approximately 40% of 108 firms in the IPO index
- Significant Declines
- A dozen companies down more than 25% from offer price
- Outperforming Companies
- Ather Energy and Waaree Energies (more than doubled since listing)