India’s IPO market enjoyed a record year in 2025, with a surge of companies going public and unprecedented capital raised from equity offerings. However, the euphoria of listing-day rallies has been tempered by sobering post-listing performance as the primary market faces a reality check heading into 2026.
Of the 103 companies that debuted on Indian stock exchanges in 2025, 69 started trading above their IPO issue price on listing day, but that early optimism didn’t hold for many. By December 26, 2025, only 54 stocks were still trading above their issue price, while 47 were below it, meaning nearly half of the listings have ended the year in negative territory relative to their IPO levels.
The trend highlights a growing disconnect between initial excitement and long-term investor confidence. Analysts say that while the primary market witnessed strong subscription rates and enthusiastic debut performances, many companies — especially those with smaller listings under ₹1,000 crore — have struggled to sustain valuations once the immediate hype faded. Several of the weakest performers are down 30 % to over 50 % from their issue prices, underscoring post-listing pressure in secondary markets.
In contrast, some of the largest IPOs of the year continued to hold gains, with names such as Meesho and Billionbrains Garage Ventures trading significantly above their issue prices, demonstrating that scale and perceived quality still matter to investors.
Market experts say the pattern signals an emerging differentiation between quality IPOs with strong fundamentals and others buoyed more by sentiment than by long-term business prospects. Investors are urged to look beyond listing-day price pops and assess fundamentals, growth capital needs and valuation before entering new issues, especially in a backdrop of tightening liquidity and heightened market scrutiny.
As the IPO pipeline remains active, the big challenge in 2026 will be identifying offerings with sustainable post-listing performance instead of chasing short-term gains, reinforcing the importance of due diligence and a cautious approach to primary market investments.
