IPOs in 2025: Hits, Misses, and What Next

As 2025 draws to a close, it has been a busy year for the NSE and BSE. Over 100 companies went public under the mainboard category and raised over ₹1.6 lakh crore from the general public and institutional investors. October alone saw the listing of 14 companies, which together raised ₹46,000 crore. However, what is interesting about these listings is that only 51 stocks are trading above their issue price, while the remaining ones are struggling on Dalal Street.

Listing Gains Slow Noticeably Compared With 2024

Despite the busy deal calendar, the tone of the year differed from 2024. Listing gains contracted sharply from the highs of the previous cycle. Retail investor data suggested that average first-day gains dropped to about 8.4% in 2025, compared with 29% in 2024 and 27% in 2023, while overall retail subscription moderated from 33.71× in 2024 to 26.99×.

Other analyses echoed with the trend. One media summary described average listing gains of roughly 9% for the year, the lowest in three years, even as overall fundraising climbed.

At the same time, broader performance across recent IPO cohorts (2024 through 2025) still showed relatively healthy early-phase returns: a review of 161 IPOs since January 2024 reported average listing gains of 22%, with over half of them delivering double-digit gains.

The pattern was consistent across deal sizes as well. KPMG’s 2025 analysis found that large issues above ₹5,000 crore averaged about 29% in listing gains, while small issues below ₹200 crore averaged about 37%, showing that size did not always translate into stronger first-day performance.

IPOs That Delivered Strong Returns

While the most notable performance came from Stallion India Fluorochemicals, which surged by 154% since its issue price, other standout performers of 2025, both in terms of listing gains and sustained post-listing returns, include:

• Meesho: With an IPO price of ₹111, Meesho saw a listing gain of 53% and is currently rallying at around 95% from its issue price. The company has added roughly ₹47,000 crore in market capitalisation.

• LG Electronics India: This $1.3 billion IPO surged 48% on its debut. Following the issue price of ₹1,140, LG shares are currently trading above ₹1,500 on the NSE.

• ICICI Prudential AMC: Ranked as the second-best listing among IPOs larger than ₹10,000 crore, the company was listed on the exchange at a premium of more than 20%.

• Groww: Listed at a 14% premium over the issue price of ₹100, Groww is currently trading over 72% higher than its IPO price.

Other names with strong listing metrics included Urban Company, Aditya Infotech, PhysicsWallah, and Highway Infrastructure.

IPO Misses & Underperformers

While the list is comprehensive, some underperforming and worst-performing IPOs include:

• Lenskart Solutions: Lenskart listed on the BSE at a 1.74% discount to its issue price of ₹402, making it the only IPO with an issue size above ₹4,000 crore so far to debut at a discount.

• Tata Capital: Noted as the largest IPO of the year with an issue size of ₹15,000 crore, the company saw a muted listing gain of 1%.

When it comes to the worst performers, Glottis Limited leads the chart with a listing-day loss of 35% and is currently trading about 45% below its issue price. Glottis is followed by Gem Aromatics, which is trading at approximately 35% below its issue price.

SME Listings: Wild Swings and Volatility

Small and Medium Enterprises (SME) in the context of an IPO refers to a company with a post-issue paid-up capital of up to ₹25 crore and net tangible assets of at least ₹1.5 crore. These IPOs are typically listed on SME platforms of the stock exchanges and tend to attract higher risk and reward, which was evident in 2025 as the segment remained active but marked by substantial volatility.

Of 254 SME listings till 19 Dec, around 120 stocks debuted in the green, while 132 ended in the red. Tankup Engineers has surged by 416% since its IPO, Anondita Medicare is up by 406%, while Fabtech Technologies and Cryogenic OGS are trading in green by 296% and 270%, respectively.

In terms of losers, key names include Valencia India, which is trading at a loss of 82% since its IPO, and Studio LSD, Aten Papers, Swasth Foodtech, and Siddhi Cotspin, where losses range from 72% to 75%.

SME figures highlighted sharp differences in risk and reward within the segment.

What Comes Next: Pipeline Into 2026

The IPO pipeline for early 2026 remains active. Companies such as:

• Prism (OYO’s parent) received shareholder approval to raise roughly ₹66.5 billion via IPO, potentially targeting a 2026 listing.

• Coal India subsidiary Bharat Coking Coal plans a ₹1,300 crore IPO, underscoring ongoing interest from PSUs in the public markets.

Market watchers also note a broader queue of unicorns and late-stage startups preparing to go public once market conditions stabilise.

Key Takeaways for Investors

The IPO trend of 2025 shows a shift from quantity to selective quality. Although there is a rise in overall fundraising, many mid-sized and retail-focused IPOs struggled to sustain listing gains, highlighting that strong fundamentals, sustainable business models, and growth visibility matter more than market hype.

Additionally, high volatility in SME IPOs indicates opportunities for substantial returns but carries significant risk. Diversification, careful due diligence, and attention to company-specific financial health will be crucial for 2026 investments.

References:

Kotak
Outlook Money
Outlook Money
Financial Express
Fortune India
Business Standard
Moneycontrol