India’s primary markets witnessed a cautious yet revealing first half of 2025, with analysts noting that most initial public offerings (IPOs) were “priced to perfection,” leaving minimal upside for investors and prompting calls for greater selectivity in the months ahead.
According to data compiled by Business Standard, 19 companies launched mainboard IPOs in H1 2025, collectively raising ₹29,834 crore. However, 10 of these stocks—over 50%—are currently trading below their listing price, and seven are below their issue price. The trend is even more pronounced in the SME segment, where 82 companies raised ₹3,645 crore, but 46 are trading below their listing price and 45 below their issue price.
Sunny Agrawal, Head of Fundamental Equity Research at SBICap Securities, observed that IPOs were largely “priced to perfection,” offering little room for post-listing gains. “This has resulted in muted listings across several recent IPOs,” he said.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, echoed the sentiment, noting that many offerings lacked strong revenue or profit growth visibility. “Post-IPO earnings have often disappointed, leading to steep corrections. The market, being increasingly valuation-conscious, is quick to penalise underperformance,” he explained.
Geopolitical tensions and tariff-related uncertainties also contributed to market volatility, further dampening investor enthusiasm. Retail investors, in particular, were quick to exit IPO stocks even with modest listing gains, leading to a scarcity of sustained post-listing rallies.
Looking ahead, analysts expect a healthy pipeline of IPOs in H2 2025 but warn that investor appetite has become more discerning. “We’ve seen robust interest in both primary and secondary market deals, but the second half will likely be more selective and valuation-conscious,” Agrawal noted.
Tapse advised investors to adopt a disciplined, long-term approach. “After the underperformance of many H1 listings, the market is no longer rewarding hype. Fundamentals and realistic pricing will be key,” he said.
With ample liquidity still present and several high-profile IPOs in the pipeline, the stage is set for a potentially active H2—albeit one where caution may be the defining strategy.
