Why are Indian IPOs performing poorly in 2025?

Many companies listed in 2025 are trading below their issue price, leading to disappointment for investors.

What is happening with Indian IPO listing gains?

Recent IPOs in India have shown declining listing gains, causing concern among investors.

Will Sebi intervene in the Indian IPO market?

There are calls for the Securities and Exchange Board of India (Sebi) to step in and review company valuations due to poor IPO performance.

Home / Business and Economy / Indian IPO Market: A Cautionary Tale

Indian IPO Market: A Cautionary Tale

24 Nov

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Summary

Recent IPOs show declining listing gains in India.
Many 2025 company listings are trading below issue price.
Retail investors express disappointment over IPO performance.

Anger is mounting over the performance of the Indian initial public offering (IPO) market, with recent data revealing a worrying trend of declining listing gains. A significant portion of companies that debuted in 2025 are currently trading below their initial issue price, leaving many retail investors feeling disillusioned and out of pocket.

This downturn has sparked strong reactions, with terms like "trap" and "loot" being used to describe the investment experience. The situation has put pressure on the Securities and Exchange Board of India (Sebi), the market regulator, to step in and examine the high valuations of some of these newly listed entities.

While the immediate focus is on recent performance, a deeper analysis of issuance volumes over the past two decades is essential to truly understand the health of the primary market. The current outcry highlights a critical juncture for policy-making as the noise surrounding these IPOs intensifies.