IPO Fever Hits Indian Markets: What Does This Mean for Your Investments?

Are you wondering why the Indian stock market is witnessing a surge in IPOs despite the volatility? The answer lies in the strong capital-raising wave that has swept the market, with companies from various sectors tapping into Dalal Street to expand their operations.

In 2025, the majority of IPOs have received a strong investor response, with even big-ticket IPOs seeing robust demand. However, nearly 50% of the IPOs that saw the biggest retail subscription are trading below their issue prices, causing significant losses for retail investors.

IPO Performance: A Mixed Bag

Out of 102 mainboard IPOs listed in 2025, 50 are trading below their issue prices, with losses extending up to 55%. On the other hand, 52 companies are trading with gains, with Stallion India Fluorochemicals leading the pack, delivering multibagger returns with shares trading 137% above the IPO price.

Some notable gainers include Aditya Infotech, Ather Energy, and Meesho, which are trading 125%, 125.4%, and 94% above their respective IPO prices. However, stocks like Gem Aromatics, Glottis, and VMS TMT are trading at a significant discount to their IPO prices, highlighting the importance of careful stock selection for investors.

What Should Traders / Investors Do Now?

• Intraday traders: Focus on stocks with high liquidity and volatility, and keep a close eye on market trends and news.
• Short-term traders: Look for stocks with strong technical indicators and momentum, and be prepared to exit quickly if the trend reverses.
• Long-term investors: Invest in companies with a strong fundamental analysis, and hold onto them for the long term, regardless of short-term market fluctuations.

Frequently Asked Questions

• Will Nifty fall after this news? The impact of IPOs on the Nifty is complex and depends on various market factors, including investor sentiment and economic conditions.
• Is this good or bad for bank stocks? The performance of bank stocks is influenced by a range of factors, including interest rates, credit growth, and regulatory changes.
• What should retail investors watch next? Retail investors should keep an eye on market trends, economic indicators, and company-specific news to make informed investment decisions.

As the Indian stock market continues to witness a surge in IPOs, it's essential for investors to stay informed and make educated decisions. #IndianStockMarket #IPOs #InvestmentTips