How Current IPOs Perform After Listing
India’s IPO market experienced a major upswing in FY25, with 79 companies collectively raising over ₹1.62 lakh crore, more than three times the ₹61,857 crore mobilized in FY24. This impressive growth was driven by strong retail investor participation, solid institutional backing, and favorable market conditions.
As IPO activity soared, current IPO performance remained a key focus. Despite 13 IPOs listing below their issue price, the majority posted healthy gains, reflecting broad investor confidence and a maturing investment landscape. The success of several listings has further boosted optimism for the upcoming IPO pipeline, which is expected to stay strong amid sustained market interest.
Source: IPO Central
Types of IPOs and Their Performance
Fresh Issues
In FY25, 13 companies launched IPOs as fresh issues, raising ₹14,921.45 crore. These offered an average listing gain of 34.84%, proving that investors were keen on funding business growth.
Mixed Issues (Fresh + OFS)
A total of 52 IPOs were issued, comprising a mix of fresh issues and Offer for Sale (OFS), raising ₹88,715.05 crore. These IPOs yielded an average gain of 27.05% on the listing day, demonstrating investor confidence in companies seeking to expand while allowing promoters to partially exit.
Pure OFS
There were 14 IPOs that were only Offer for Sale, raising ₹58,880.73 crore. Despite concerns about promoter exits, these IPOs performed well, with an average gain of 32.99%, showing that the market has become more mature and confident.
Source: IPO Central
Listing Day Performance: A Mixed Bag
The performance of IPOs on their listing day varied significantly:
Borana Weaves Limited debuted on May 27, 2025, with an issue price of ₹216 and closed its listing day at ₹255.15, marking an 18.13% gain. As of now, the stock trades slightly lower at ₹255.10, maintaining a steady 18.1% overall gain.
Ather Energy Limited’s IPO, listed on May 6, 2025, at ₹321, saw a weak debut as the stock closed at ₹302.3, marking a 5.83% drop from its issue price. Despite briefly touching ₹321.5 during the session, a mere 0.16% gain, the stock failed to sustain momentum, indicating weak investor sentiment on listing day.
Quality Power Electrical Equipments Limited made its IPO debut on February 24, 2025, at ₹425. The stock closed at ₹387.9, down 8.73% from its issue price, signaling a weak listing. However, it touched a high of ₹441.45 during the day, reflecting a 3.87% intraday gain, suggesting initial volatility and mixed investor response.
Hexaware Technologies Limited listed on February 19, 2025, at an issue price of ₹708 and gained 7.7% on debut, closing at ₹762.55. The stock has since appreciated further, currently trading at ₹819.90, reflecting a total gain of 15.81%. This steady rise post-listing suggests sustained investor confidence and positive market sentiment toward the company.
Source: Chittorgarh.com
- High Performers: Companies like Mamata Machinery and Bajaj Housing Finance recorded impressive listing gains of 159.26% and 135.71%, respectively.
IPO Central
- Moderate Gains: Belrise Industries debuted with an 11% premium over its IPO price, reflecting strong investor confidence .
The Economic Times
- Underperformers: Hyundai Motor India’s IPO listed at a 7.16% discount, indicating cautious investor sentiment
.IPO Central
On average, listing gains in the second half of the financial year stood at 25%, slightly down from 31.9% in the first half .
The Financial Express
Post-Listing Trajectory: Sustained Momentum for Some
While some IPOs maintained their momentum post-listing, others faced challenges:
- Sustained Growth: KRN Heat Exchanger witnessed a remarkable 301.82% increase from its IPO price, while Bharti Hexacom saw a 152.25% rise .IPO Central/The Financial Express
- Declining Trends: Companies like Indo Farm Equipment and Laxmi Dental experienced declines of 9.12% and 13.71%, respectively, from their allotment prices .IPO Central/Chittorgarh
These variations highlight the importance of evaluating company fundamentals and market conditions beyond initial listing gains.
Capital Goods Lead the Way
The capital goods sector dominated IPO activity with 17 listings, followed by financial services (10) and consumer services (8) . Emerging sectors like renewables and logistics also attracted investor interest, signaling a shift towards sustainable and infrastructure-linked themes.IPO Central
Institutional Participation: A Driving Force
Qualified Institutional Buyers (QIBs) played a pivotal role in IPO subscriptions. The top 20 QIB-subscribed IPOs delivered an average listing gain of 55.29%, underscoring the influence of institutional investors in the IPO market .
IPO Central
Market Volatility
Despite robust IPO activity, market volatility posed challenges. Analysts cautioned that inflated valuations and increased promoter selling could dampen investor enthusiasm . Furthermore, a 45-day period of market turmoil saw five out of eight IPOs trading below their allotment prices, reflecting the impact of broader market sentiments on IPO performance .The Economic Times
Conclusion
The IPO market in 2025 has been characterized by significant capital inflows, varied listing performances, and evolving investor sentiments. While opportunities abound, investors must exercise due diligence, focusing on company fundamentals, sectoral prospects, and market conditions to make informed decisions.
