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.