The Indian IPO market in 2025 has turned more cautious, with listing gains shrinking to nearly half of last year’s levels. On average, investors have seen listing gains of 14.6 percent this year compared to 30.25 percent in 2024. The decline comes amid lackluster equity markets and global pressures, particularly from tariff moves in the United States that have dampened investor confidence.
The stock market’s performance this year highlights the sluggish sentiment. The Sensex has inched up only 3.39 percent so far in 2025, while the BSE IPO index, which tracks newly listed companies, has barely moved with a 0.34 percent rise. This stands in stark contrast to 2024, when the Sensex gained over 8 percent and the IPO index surged nearly 32 percent, buoyed by strong liquidity and investor enthusiasm.
Market experts believe this cooling off was inevitable. According to Pranav Haldea, Managing Director at Prime Database, the secondary markets have been under pressure due to external factors such as tariffs, and naturally the IPO market has also slowed down. He further noted that the weaker sentiment has led companies to price their issues more reasonably, which could prove healthier for the market in the long run.
Even with subdued listing day pops, the broader picture is not entirely bleak. Out of 43 IPOs that have hit the market this year, 34 are currently trading above their issue price. This means nearly 80 percent of new listings have still generated positive returns for investors. The average return at current market prices stands at 22.5 percent, showing that patient investors are being rewarded despite muted first-day performances.
Collectively, these 43 IPOs have raised Rs 67,737 crore in 2025, which is significantly lower than the Rs 1.6 lakh crore raised through 91 issues in 2024. However, the quality of deals remains strong. Among the large offerings, NSDL has emerged as a standout performer, providing a remarkable 54.6 percent return from its issue price after a 17 percent jump on its debut. Hexaware Technologies also fared well with a 12.3 percent rise, while HDB Financial Services is trading 6.8 percent higher than its issue price, following a solid debut.
Smaller IPOs have also delivered pockets of strong gains. Patel Retail impressed investors with a 13.6 percent gain on listing day, while Vikram Solar and Shreeji Shipping Global saw modest but positive starts. Gem Aromatics was one of the few disappointments, slipping 1.8 percent on debut. Meanwhile, a handful of other names like Aditya Infotech, Prostarm Info Systems, Quality Power Electrical, Stallion India Fluorochemicals, and Belrise Industries have delivered more than 50 percent gains since listing, showing that opportunities for high returns continue to exist.
Not all investors have struck gold, though. Nine companies are currently trading below their issue price, including Arisinfra Solutions, Laxmi Dental, and Laxmi India Finance. These cases serve as a reminder that IPO investments carry risks and that not every offering can guarantee strong performance.
Despite the slowdown, the pipeline for IPOs remains robust. Nearly 180 companies have filed or are awaiting regulatory approval to raise more than Rs 3 lakh crore. This suggests that while immediate sentiment may be muted, long-term confidence in India’s capital markets remains intact. If market conditions improve and global pressures ease, the upcoming issues could see stronger investor participation.
Conclusion
The IPO story of 2025 is one of moderation. Listing gains have fallen significantly from last year’s highs, but the majority of issues continue to generate healthy returns for investors. Companies are pricing more sensibly, which may ultimately build a more sustainable market environment. For investors, the lesson is clear: patience and selectivity are crucial. While big first-day pops may be rarer, steady long-term gains are still achievable.
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