For many retail investors in India, subscribing to an initial public offering (IPO) is seen as a fast track to listing-day profits. However, the harsh reality of the primary market in 2025 serves as a stark reminder that such gains are never guaranteed. The performance of a new listing hinges on a complex mix of issue pricing, prevailing market mood, and demand after the stock starts trading.
The Bleak Numbers Behind IPO Dreams
The data for the current year paints a sobering picture. Out of the 107 companies that have debuted on the exchanges in 2025, a significant 35 are trading below their issue price. To make matters worse, an additional 18 IPOs managed to deliver gains of 5% or less on their very first day. This means nearly half of all new listings have failed to generate meaningful returns for investors who entered at the offer stage, underscoring the inherent risks that accompany equity investing.
Top 5 IPOs With the Worst Listing Day Blues
Several new entrants have distinguished themselves for all the wrong reasons, turning investor portfolios red on the very first day of trading. Here are the companies that witnessed the most severe listing-day setbacks.
Glottis stands out as the poorest performer, not just on its debut but for the entire year. Its shares listed at a steep 35% discount to the IPO price of ₹129. The pain has only deepened since, with the stock now trading 52% lower than what investors paid. Its tepid subscription of just 2.12 times foreshadowed the weak demand.
Om Freight Forwarders saw its stock open on the NSE at a 40% discount to its ₹135 IPO price. Although it recovered some ground to close the day 33.45% down at ₹89.84, investors are still nursing losses of approximately 28% from their initial investment.
BMW Ventures listed at a 21% discount to its ₹99 offer price and proceeded to fall further, ending its debut session 29% lower at ₹70.39 per share. It remains one of the year's biggest disappointments, currently down 41% from its IPO price.
Arisinfra Solutions began trading at an 8% discount at ₹205 and the sell-off intensified through the day. It settled its listing day 21.45% down and continues to languish, now trading 39% below its offer price, securing its place among the top 10 worst IPOs of 2025.
Jaro Institute of Technology Management & Research had a particularly cruel debut. It started at par with its ₹890 IPO price, giving investors false hope, before relentless selling pressure dragged it down to close 16% in the red. The stock now trades nearly 39% below its offer price.
Key Takeaways for Cautious Investors
This trend highlights critical lessons. Richly valued IPOs coupled with weak secondary market sentiment often lead to disappointing debuts. The excitement surrounding a new issue must be tempered with rigorous analysis of fundamentals, valuation, and broader market conditions. Blindly subscribing to every IPO in hopes of quick listing gains can be a recipe for losses, as evidenced by the significant number of stocks trading at a cut.
Disclaimer: This analysis is for educational purposes only. Market conditions are dynamic and unpredictable. Investors are strongly advised to conduct their own research or consult with SEBI-certified financial experts before making any investment decisions.
