IPO market loses steam: Listing gains drop 58% from last year

Despite a surge in new initial public offerings (IPOs) in India, the excitement of listing gains seems to be waning. So far in 2025, the average first-day listing returns for IPOs have slipped to 12.7%, a sharp drop of more than 58% from the 30.1% gains registered in 2024. During the same period, the BSE Sensex has delivered just over 4% returns on a year-to-date (YTD) basis, compared with over 8% in 2024.

“Listing performances so far this year are clearly indicative of diminishing returns after a power-packed 2024, which saw average returns in excess of 30% on a large base,” said Anil Sharma, co-founder, IPO Central.

He added that the listing pop is the driving force behind investors' interest in the primary markets, and its tapering could signal lower interest from retail investors going forward.

“One of the primary reasons behind the modest performance this year is the limited buying from high-net-worth individuals (HNIs) in the informal market owing to rich IPO valuations,” Sharma added.

So far this year, 51 companies have debuted on the bourses, compared with 90 listings in 2024. Of these, 37 issues delivered positive listing gains, while 14 opened in the red, as per data compiled by IPO Central.

According to IPO Central data, 2025 stands out as a period of moderation in IPO frenzy compared with the buoyant run between 2021 and 2024. This year’s performance marks a sharp decline from 2024, which witnessed 90 IPOs, including 71 positive debuts, delivering average returns of 30.12%.

In 2023, the market saw 59 listings, 51 of which closed in the green, generating average gains of 28.44%. The performance in 2022 was more subdued, with 38 IPOs, 23 positive and 15 negative, translating into modest returns of 9.37%. By contrast, 2021 was a standout year, with 64 IPOs, 46 of them positive, and average listing gains as high as 31.88%.

Pranav Haldea, managing director of Delhi-based PRIME Database Group, said listing gains usually mirror secondary market performance.

“In a bullish market, you typically see stronger debuts. But regardless of market conditions, investors should stick to the strategy they have adopted—if they’re in for listing gains, they should exit on listing, even if the shares list at a discount, and not become reluctant long-term investors."

Meanwhile, the Indian primary market is gearing up for a busy festive season, with 15 mainboard IPOs collectively worth around ₹10,000 crore scheduled to open for subscription in the coming weeks.

Among the companies expected to hit the market are iValue Infosolutions, Saatvik Green Energy, GK Energy, Park Medicity Hospital, Jain Resource Recycling, Anand Rathi Share & Stock Brokers, and others, with individual issue sizes ranging from ₹125 crore to over ₹1,250 crore.

Jin Kushal Industries, Atlanta Electricals, Solar World, CIEL HR, Ganesh Consumer, Seshaasai Technologies, Jaro Institute of Technology Management and Research, TruAlt Bioenergy, and Epack Prefab Technologies are also set to launch their IPOs.