9% of IPOs Down 25–50% Since Listing, Shows New Study

Nearly half of the companies that went public in India over the past six years are currently trading below their issue price, underlining the risks associated with long-term IPO investing, according to a report by Axis Capital.

The report, which analysed the performance of 374 Mainboard IPOs and Follow-on Public Offers (FPOs) listed between July 2020 and January 2026, shows that 180 companies are trading in negative territory.

Among these underperformers, nearly 19 per cent — or about 70 companies — are trading at losses ranging between 25 and 50 per cent compared to their issue price. Alarmingly, another 34 firms, representing 9 per cent of the total, have seen their stock prices plunge by more than 50 per cent.

The data also indicates that 50 companies, or 13 per cent, are trading at losses of 10 to 25 per cent, while 26 companies, or 7 per cent, are marginally below their issue price by up to 10 per cent.

This trend suggests that a significant portion of IPOs continue to struggle long after their market debut, despite initial investor enthusiasm.

On the positive side, around 194 companies — roughly half of the total — are currently trading above their issue price, reflecting sustained investor confidence in select stocks.

Among the gainers, 57 companies, or 15 per cent, have delivered exceptional returns of over 100 per cent. Another 44 firms, or 12 per cent, have recorded gains between 50 and 100 per cent.

Meanwhile, 35 companies, or 9 per cent, are trading 25 to 50 per cent higher than their IPO price, 25 companies, or 7 per cent, have risen between 10 and 25 per cent, and 33 firms, or 9 per cent, are up by up to 10 per cent.

The report highlights that while headline-grabbing listing gains often attract retail investors, sustained performance depends on business fundamentals, governance, and market conditions.

Overall, the findings suggest that IPO investments over the past six years have produced uneven results. While some companies have generated substantial wealth, many others continue to remain under pressure, even years after listing.

An Initial Public Offering (IPO) allows private companies to raise capital by offering shares to the public for the first time, enabling them to list on stock exchanges and access wider investor participation.

(With inputs from ANI)