10 of 15 Startup IPOs from 2025 Now Below Issue Price

A large number of venture-backed startups that were listed on Dalal Street in 2025 are now trading below their issue price. This comes barely a year after their debut, as volatility in equity markets and closer scrutiny of financial performance weigh on investor sentiment.

According to an analysis, 10 out of 15 new-age technology companies that went public through initial public offerings (IPOs) last year are currently trading below their offer price (see table):

Market Volatility Hits Listed Startups

Escalating tensions in West Asia have emerged as one of the biggest reasons behind the recent weakness in these stocks. The geopolitical conflict has shaken global markets and dampened risk appetite, particularly for high-growth technology companies. As per experts, newly listed companies tend to react more sharply in such a geopolitical environment.

Impact Spreading To Such Future IPO Plans

The uncertainty in global markets is also beginning to affect companies that are preparing to go public. Escalating tensions in West Asia have already started weighing on IPO plans of several late-stage startups.

Some companies are now preparing for lower valuations if they proceed with listings. Others are considering delaying their IPO timelines until market conditions stabilise. Market participants say the recent fall in many startup stocks also reflects a cooling phase after a strong run in the IPO market.

Investor interest in new listings was high through much of 2025. Many startups entered the market at valuations that assumed rapid expansion and a steady move toward profitability. But after listing, companies have to report results every quarter. That puts their business performance under closer watch from investors.

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Uneven Performance Among 2025 Listings

Over the past year, the gap in performance among these companies has become clearer. More than half of the startups that went public in 2025 are now trading below their issue price. At the same time, a few companies have managed to hold investor confidence. The IPOs that were found to be trading above their listing price were Lenskart, Groww, Meesho and Ather Energy.

Investors appear to favour companies that are showing steady growth or clearer progress towards profitability. The broader trend, however, indicates that investors in the public market are becoming more cautious while evaluating technology companies.

Sources

Moneycontrol

India IPO