IPO activity has gathered steam in 2025, with 128 companies listed to date, and the number is likely to surpass 2024’s tally of 158. The growing pipeline reflects investors’ appetite and hopes of making listing gains. However, not all companies that recorded a listing pop have maintained the same momentum on the bourses.

According to BSE data, of the 51 mainboard IPOs listed this year, 13 companies whose shares opened above their issue price have sunk in the market. For instance, HDB Financial Services, that had the year’s largest issue size of ₹12,500 crore, recorded a listing day close of ₹840.9, at a ₹100 premium to its issue price. However, it is currently trading at ₹783.4, sliding 6.84% from its listing price.

The major laggard from this year’s IPOs is Laxmi Dental Limited. It was listed at ₹550.65 apiece against its issue price of ₹428, but its current market price (CMP) has declined sharply by 43% to ₹315. Even Highway Infrastructure Limited’s shares are trading lower by 29% at ₹87.25 compared to the listing price of ₹122.84. The CMP is still above the issue price of ₹70.

On the other hand, some IPOs have given good returns. Aditya Infotech Limited, a surveillance solutions company, saw the steepest jump of ₹409 above its issue price of ₹675 at listing. The stock completed its debut session at ₹1,084 and is currently trading at ₹1,352.5.

In 2024, out of 158 IPOs, 90 were mainboard, of which 38 are now trading below their listing price. That means 42% of mainboard IPOs fizzled out after their high listing prices. Shares of companies such as JNK India, Brainbees Solutions, Akums Drugs and Pharmaceuticals, and Saraswati Saree Depot that debuted well above expectations are currently trading below their listing price; they have also slipped past the issue price.

Akme Fintrade, an NBFC, saw the maximum drop. Although it did not list at a sky-high price (₹131.95), it was still well above the issue price (₹120), but its CMP is ₹7.54—a 94.25% slide. JNK India, a thermal equipment company, had an issue price of ₹415 but was listed at a premium of ₹279, at ₹693.95. However, the CMP has dipped by 57.55%.

2024 also saw well-known companies get listed. The question is: Are they trading above their listing pops? Bhavish Aggarwal-led Ola Electric Mobility had an issue price of ₹76 and debuted at ₹91.18 exactly a year ago. As of now, it is trading at ₹57.39.

PN Gadgil Jewellers, a renowned jewellery brand in Maharashtra, also listed after being in operation since 1832. Its issue price was ₹480, but it debuted higher at ₹792.8. It currently trades at ₹600, lower than the listing price but well above the issue price. Swiggy also debuted on the bourses in 2024, at a ₹65.95 premium to its issue price of ₹390. Though its CMP is lower, like PN Gadgil Jewellers, it is trading above its issue price at ₹423.

On the contrary, Hyundai Motor India, the largest IPO in size to date, was entirely an offer-for-sale (OFS) of ₹27,858.75 crore. Its issue price was ₹1,960, and it was listed lower at ₹1,820, but it is now trading way above at ₹2,500.

In 2023, 120 IPOs were listed, with 59 on the BSE mainboard, of which 22 are trading below their listing price. Tata Technologies had an issue size of ₹3,042.51 crore, entirely OFS, for ₹500 apiece. Its listing price soared to ₹1,314.25, gaining ₹814.15. Yet, its CMP is ₹703, down 47% from its debut.

India’s first drone manufacturing company, ideaForge Technology, saw a bumper listing at ₹1,295.50, nearly double its issue price of ₹672, but its CMP is ₹496.

In 2022, 90 IPOs hit Dalal Street, with 38 on the mainboard, of which 10 companies have slid below their listing price. DreamFolks Services, an Indian airport service aggregator, had an issue price of ₹326 and was listed at ₹462.65 but has declined sharply by 70% to ₹139. Campus Activewear, another household name, was listed at ₹378.6, above its issue price of ₹292, yet its CMP has dipped 28% to ₹271.

Delhivery too was listed on a positive note, at ₹537.25, ₹50.25 above the issue price, but its CMP is ₹467.35. On the other hand, companies like Landmark Cars, a multibrand automobile retailer, Life Insurance Corporation of India, and Ethos, a premium watch retailer, are bucking the trend. These companies had a weak debut but are now trading above their issue price. Ethos stands out as an example because its CMP is ₹2,382.40, a staggering 197% advance over its issue price of ₹878. Prudent Corporate Advisory Services and Rainbow Children's Medicare Limited also show similar trends, both above their issue price by 417% and 231%, respectively.

IPO activity rebounded in 2021, as the Covid-19 pandemic had discouraged private companies from going public. Ninety companies were listed on the BSE, of which 64 were mainboard. Yet, shares of 22 out of these 64 companies have fallen below their listing debut. FSN E-Commerce Ventures Limited, Nykaa’s parent company, saw a massive decline in its CMP from the debut price. It had a blockbuster debut at ₹3,118.65, gaining ₹1,628.65 above its issue price of ₹1,490. Its current market price? ₹239.15, a 90% decrease from its listing price.

Even Sigachi Industries, which debuted at 3.7 times its issue price of ₹163, has dwindled by more than 90% to ₹42.73. Easy Trip Planners Ltd, EaseMyTrip’s parent, also plunged from its listing price of ₹208.3 to ₹8.52. Sapphire Foods, a QSR operator that has KFC, Pizza Hut, and Taco Bell under its belt, too, listed slightly higher at ₹1,216.05 but has since dropped steeply to ₹330.

On the other hand, Paytm’s parent, One 97 Communications Limited, which debuted in 2021, listed lower by ₹585.85 than its issue price of ₹2,150 and has since fallen to a CMP of ₹1,234.50.

In 2020, 31 IPOs made it to the bourses, and of the 14 mainboard ones, three are now trading under their listing price. Chemcon Speciality Chemicals Limited debuted at ₹584.8, while its issue price was ₹340. It is currently trading at ₹240.56, a 60% erosion from its listing value. Burger King India, the national franchisee of the fast-food giant, listed at ₹138, double the issue price of ₹60, and is currently trading at ₹82.31.

In the past five years, even with IPO activity accelerating, some have given spectacular debut gains, while others have faced sharp post-listing corrections. Companies with a CMP lower than the listing price largely belong to the tech or digital sector, such as Nykaa, Swiggy, EaseMyTrip, and Tata Technologies, followed by the consumer and retail sector, such as Campus Activewear, PN Gadgil Jewellers, and Sapphire Foods. According to analysts, stretched valuations, annual performance, and shifting market signals have weighed on the post-listing trajectory of these IPOs.

Pranav Haldea, Managing Director, Prime Database, says that the market ultimately cares about profitability.

Echoing similar sentiments, Kranthi Bathini, an equity market strategist at WealthMills Securities, says that share prices will inevitably correct if the company’s annual performance and earnings track record do not justify the valuations. “Unless their growth and profitability catch up, the stock price struggles to sustain those levels,” Bathini says.

For some investors, a declining share price could be seen as an opportunity to enter after missing out on the IPO. Yet, both Haldea and Bathini advise researching the company’s long-term aspects before making decisions. “For investors who miss out on IPO allotments and want to enter later, it requires a lot of hard work. You have to study the company’s long-term prospects, profitability, and fundamentals,” Haldea says.

For Bathini, serious investors should wait at least two to three quarters post-listing before committing. “That’s when management commentary and earnings growth give a clearer picture,” he concludes.