Key Highlights & Market Trends
- Only 70% of IPOs listed at a premium in Calendar Year (CY) 2025 — lowest since 2017 (78%).
- CY2024 saw 85% IPOs list at a premium, indicating a significant fall in investor confidence in 2025.
Relevance : GS 3(Indian Economy)
Performance of Newly Listed Companies (CY2025)
- Of 17 mainboard IPOs listed so far:
- Data available for 15.
- 8 out of 15 are trading below their issue price.
- 6 companies lost over 80% of their value post listing.
- Some stocks are now priced below ₹1/share — indicating severe erosion in investor wealth.
Fall in Listing Gains
- Average listing gains fell from 45–49% in 2024 to just ~7% in 2025.
- Reflects subdued post-listing performance and weak speculative interest.
Factors Behind Weak IPO Performance
- High market volatility triggered by:
- U.S. tariff actions.
- Israel-Iran conflict.
- India-Pakistan tensions.
- General correction after a 4-year post-COVID bull run.
- Resulting tepid market sentiment and investor nervousness.
Decline in IPO Activity
- Number of IPOs declined sharply:
- CY2024: 32 IPOs raised ₹46,500 crore.
- CY2025 (till June): Only 17 IPOs raised ₹29,000 crore.
- Indicates fundraising environment has weakened and investor appetite is subdued.
