India’s stock market recently witnessed one of its largest IPO cycles, raising nearly ₹90,000 crore between August and October 2025. Over 60 companies went public during this period, reflecting strong investor interest. However, despite the record fundraising, many listings underperformed, showing that the market is increasingly valuation-conscious.

IPO Performances Under Pressure

Nearly 42% of IPOs are currently trading below their issue price. Several retail-favorite IPOs, which were heavily oversubscribed, have faced significant post-listing declines. For instance, Dev Accelerator, which saw 164x subscription, is now trading 30% below its issue price, while VMS TMT (47x subscribed) has dropped 37%. Other companies, including Regaal Resources and Highway Infrastructure, initially listed at strong premiums but are now trading lower, reflecting the broader market correction.

Strong Performers in a Weak Cycle

Some IPOs defied the trend by delivering substantial returns, largely due to strong fundamentals and clear growth strategies. Notable examples include Aditya Infotech (+149%), Anand Rathi (+80%), Groww (+56%), and Physicswallah (+34%). These companies highlight that investor focus has shifted from hype to fundamentals, rewarding firms with sustainable business models.

QIP Market Also Impacted

The Qualified Institutional Placement (QIP) market, which raised over ₹1.3 lakh crore in 2025, has similarly been affected by market volatility. Around 55 QIP-listed companies are now trading below their issue prices. Examples of steep declines include KPI Green Energy (-60%), JTL Industries (-49%), Vikas Lifecare and Zodiac Energy (both over -40%), while DB Realty and GPT Infraprojects have fallen more than 30%. This shows that institutional investments are not immune to valuation pressures.

Impact on Investor Sentiment

The ongoing market correction has created uncertainty among investors. Companies that initially generated strong demand are now facing declining stock prices, raising concerns about valuation sustainability and long-term prospects. While some investors are holding positions in anticipation of recovery, others are re-evaluating their strategies due to ongoing market volatility.

Conclusion

India’s recent IPO and QIP cycles demonstrate the market’s capacity to raise significant capital, but they also reveal that listing gains are no longer guaranteed. Investors are now more focused on company fundamentals, growth potential, and realistic valuations, signaling a more mature and professional market environment. The performance of both IPOs and QIPs underscores that careful evaluation is essential for sustained investment success.

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