Nearly half of recent IPOs trading below issue price: Data
Investors chasing the sizzle of Initial Public Offerings (IPOs) over the past six years have faced a sobering reality: nearly half of them are trading below their issue price, with 19 per cent nursing losses of 25-50 per cent or more, according to a fresh Axis Capital report.
The analysis of 374 Mainboard IPOs and Follow-on Public Offers (FPOs) listed from July 2020 to January 2026 reveals a stark divide. While 194 companies -- or roughly 52 per cent -- trade above their debut price, 180 remain in the red, underscoring the risks beyond the initial listing buzz.
"Headline listing gains often draw attention, but long-term performance remains mixed across market cycles," the report notes, highlighting persistent pressure on underperformers even years after listing.
| Performance vs. Issue Price | Number of Companies | Percentage of Total (374) |
|---|---|---|
| Below Issue Price | ||
| >50% loss | 34 | 9% |
| 25-50% loss | 70 | 19% |
| 10-25% loss | 50 | 13% |
| 0-10% loss | 26 | 7% |
| Above Issue Price | ||
| >100% gain | 57 | 15% |
| 50-100% gain | 44 | 12% |
| 25-50% gain | 35 | 9% |
| 10-25% gain | 25 | 7% |
| 0-10% gain | 33 | 9% |
This performance snapshot spans bull and bear phases, reminding retail investors that IPOs – where private firms go public to raise capital via stock exchanges – carry no guarantees.
Axis Capital's findings come amid a record IPO boom in India, but serve as a cautionary tale: for every multi-bagger, a cluster of names continues to weigh on portfolios.