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IPO's value plummets a staggering 60% during the year 2025.

Indian IPO market experiences a significant decline in 2025, with only 10 listings managing to raise Rs 18,704 crore. Amidst the fewer listings, the average IPO size has doubled. Cautious investors are prevalent due to weak listings and global uncertainties, yet a robust pipeline and diverse...

In 2025, India's Initial Public Offering (IPO) market experiences a significant decline, with only...
In 2025, India's Initial Public Offering (IPO) market experiences a significant decline, with only 10 issues accounting for Rs 18,704 crore, representing a 62% drop. Interestingly, despite the reduced number of listings, the average IPO size has doubled. As investors proceed with caution due to weak listings and global uncertainties, a full pipeline and sectoral diversity hint at a potential market rebound ahead.

IPO's value plummets a staggering 60% during the year 2025.

Hey there! Let's dive into the frosty world of the Indian IPO market in 2025.

The initial public offering (IPO) scene has taken a plunge, with a whopping 62% decrease compared to January-May 2024. Just 10 IPOs managed to raise a total of Rs 18,704 crore, in stark contrast to the 27 public issues that swiped Rs 24,437 crore during the same period in the previous year. Surprisingly, the average issue size has more than doubled - from Rs 905 crore to Rs 1,870 crore - with major IPOs like Hexaware Tech, Dr Agarwal's Health Care, and Ather Energy leading the charge.

This week, we can expect Ather Energy and 4 other listings to hit the market. Additionally, 2 new Small and Medium Enterprises (SME) issues deserve a watchful eye.

However, the majority of these IPOs, listed in 2025, have stumbled post-listing. At least six of them are trading below their issue prices, including Ather Energy and Quality Power. Indo Farm and Stallion India have witnessed their shares plummet by over 38% since the issue prices.

This has incited concern among both retail and institutional investors, pushing companies to delay issuances despite obtaining approvals from the Securities and Exchange Board of India (SEBI). Uncertainties surrounding tariffs and geopolitical tensions are top of the list on their radars.

(Enrichment Data: The anticipated price for Ather Energy's IPO in 2025 is set within a price band of ₹304 to ₹321 per share. As of April 25, 2025, the grey market premium (GMP) was ₹5, suggesting an estimated listing price around ₹326. However, on the listing date, May 6, 2025, the shares actually listed at a 2% premium but ended the day lower. The IPO is part of a larger plan to raise funds for a new electric vehicle factory, debt repayment, and research and development investments.)

Despite the delays, the IPO pipeline remains robust, with around 80 companies having filed draft prospectuses, with approximately half of them receiving approval from SEBI. The most active sectors are industrials, real estate, life sciences, hospitality, and construction.

Some IPOs listed in 2024 delivered exceptional returns, with Jyoti CNC Automation skyrocketing over 150% and Bharti Hexacon over 100%. Large listings like Hexaware Technologies, which raised over $1 billion, and Hyundai Motors, which garnered multi-billion dollars, placed India among the leading IPO markets globally.

(Enrichment Data: The IPO size is approximately ₹3,000 crore, with a minimum lot size of 46 shares and minimum investment set at ₹13,984 at the upper end of the price band.)

"There is an intense competition between institutions and retail for IPOs where there is value," said Nikhil Rungta, co-chief investment officer at LIC Mutual Fund. Market experts, such as Lakshmi Iyer, CEO - investments and strategies at Kotak Alternate Asset Managers, which manages $20-billion assets, mostly from foreign clients, believe things will settle down.

Amidst these looming uncertainties, analysts and institutional investors are optimistic about a possible rebound in the IPO market within the next 6 to 12 months. Their optimism stems from anticipated interest rate cuts, reduced volatility, and strong corporate earnings. While India's underlying fundamentals remain strong, a potential risk to these calculations is the strong corporate earnings, which may already be priced-in by the markets.

(Enrichment Data: The sectoral diversity of the issuance pipeline, continued interest from domestic investors, and foreign portfolio funds do indicate a potential rebound in the IPO markets if macroeconomic trends and global economic uncertainties stabilize.)

Stay tuned for more updates in the rapidly evolving Indian IPO market! And remember, don't forget to visit our website or check out our app for the latest business news, IPO news, stock market stats, share market news, and more!

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  1. In the chilled Indian IPO market of 2025, despite a doubling of the average IPO size, there's a 62% decrease in total IPOs compared to the previous year, with many of the listed IPOs trading below their issue prices.
  2. Analysts and institutional investors are optimistic about a possible rebound in the IPO market within the next 6 to 12 months, anticipating interest rate cuts, reduced volatility, and strong corporate earnings.
  3. Amidst the frosty IPO market, some sectors that remain active for IPOs include industrials, real estate, life sciences, hospitality, and construction, with around 80 companies having filed draft prospectuses, half of which have received SEBI approval.
  4. Some investors are allocating funds to Defi and exchange platforms while keeping an eye on traditional investment options like the stock market, given the uncertainties in the IPO market.
  5. While navigating the choppy Indian IPO market, it's crucial for investors to consider factors such as company fundamentals, market volatility, and the potential impact of tariffs and geopolitical tensions on their investing strategies.

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