Mumbai – India’s IPO market has shown contrasting fortunes between 2024 and 2025. While last year saw sharp extremes, this year reflects stronger sentiment and improved discipline.

In 2024, 38.7% of IPOs slipped below issue price. Out of 75 listings, 29 are trading in the red, underscoring risks despite heavy demand from investors.

So far in 2025, performance has been steadier. Of 36 IPOs, only 8 (22.2%) trade at a loss, suggesting improved pricing and better market reception.

According to Va Nagappan, Market Expert and Former President of the Hindustan Chamber of Commerce, the rebound is driven by excess liquidity chasing limited stocks and foreign investors, who remain net buyers in IPOs despite selling in secondary markets.

Still, experts caution against equating high oversubscription with quality. Smaller IPOs see 100x to 700x bids, often distorted by thin floats, with promoter holdings of 70–75%. This creates misleading demand signals.

The divergence in 2024 was stark: KRN Heat Exchanger surged 297.5%, while Popular Vehicles plunged 52.8%. Similarly, 2025 has winners like Quality Power El (+132.6%) and losers such as Arisinfra Solutions (-28.4%).

Analysts warn that new investors, many treating IPOs like SIPs, risk losses when volatility hits. As Nagappan notes, the true test will come once pre-IPO lock-ins expire and market sentiment is challenged.