The year 2025 has presented a paradox for India's capital markets. While the secondary market has navigated significant volatility, the primary market for initial public offerings (IPOs) has experienced a remarkable boom. A diverse array of companies, from fintech and renewable energy to tech startups, have successfully accessed Dalal Street to fuel their expansion, making 2025 another blockbuster year for fundraising.
Heavy Retail Subscription, Yet Post-Listing Losses
Retail investors have shown immense enthusiasm for new share sales this year, partly driven by sharp swings in the broader market. However, this fervor has not guaranteed success. Data reveals a concerning trend: nearly 50% of the IPOs that saw the highest retail subscription are now trading below their issue prices, leading to substantial capital erosion for many small investors.
According to analytics from Trendlyne, 25 mainboard IPOs witnessed retail portions being oversubscribed between 30 to 246 times. Shockingly, 14 of these are currently in the red. For instance, Dev Accelerator's retail segment was subscribed a massive 164.7 times, but the stock has plunged 31% from its IPO price since its September listing.
The story repeats with other popular issues. Laxmi Dental, with a retail subscription of 76 times in January, has seen its value erode by nearly 40%. VMS TMT, oversubscribed 48 times by retail, has shed 48% of its value. Similarly, Highway Infrastructure and Indo Farm Equipment, despite retail oversubscription levels of 155.6 times and 104 times respectively, trade 17.3% and 12.2% below their offer prices.
The Bright Spots: Winning Bets for Retail Investors
It's not all gloom. Several IPOs have delivered stellar returns to their backers. Stallion India Fluorochemicals Ltd leads the pack, trading a staggering 137% above its issue price, even though its retail portion was subscribed 97 times. Aditya Infotech, with a retail subscription of 51 times, has rewarded investors with gains of 125.3%.
Other notable winners include Prostarm Info Systems, Rubicon Research, Urban Company, Aequs, Anlon Healthcare, and GNG Electronics, all trading between 20% and 67% higher than their IPO prices. These successes highlight that careful selection, beyond just subscription hype, remains crucial.
A Split Performance: Winners and Losers of 2025
Zooming out to the broader IPO landscape of 2025, the performance is strikingly uneven. Out of 102 mainboard IPOs listed this year, exactly 50 are trading below their issue prices, with some losses extending up to 55%.
The list of worst performers includes Gem Aromatics, trading at a 55% discount, followed by Glottis, VMS TMT, Arisinfra Solutions, BMW Ventures, Laxmi Dental, Jaro Institute of Technology, and Mangal Electrical Industries, all down between 35% and 54%. Even some large issuances like JSW Cement and Vikram Solar have faced deep cuts of around 20% each.
On the winning side, 52 companies trade with gains. After Stallion India and Aditya Infotech, Ather Energy and Meesho shine, trading 125.4% and 94% above their IPO prices respectively. Other significant gainers are Belrise Industries, Anlon Healthcare, Quality Power Electrical, Jain Resource Recycling, Epack Prefab Technologies, and Anand Rathi Share Stock, up between 50% and 96%. LG Electronics, one of the year's largest IPOs, trades 36% higher.
The narrative of 2025's IPO market is clear: while the wave of new listings continues unabated, investor outcomes are highly polarized. The data underscores that heavy oversubscription is no guarantee of post-listing gains, emphasizing the need for rigorous due diligence and a focus on fundamentals over frenzy.
