The stock market has been witnessing a boom since Iran-Israel War stops and the portfolio of investors is in recovery mode. If we look at the IPO market, it is constantly disappointing. Most of the upcoming IPOs have been listed on discounts or have shared after listing. Investors are also wondering what are the reasons, which is harming those who invest money in IPOs? Let’s know
Today, even though investors are suffering from IPO, there was a time. When people were making big money by investing in IPO. Shares of fundamentally week companies were also giving strong returns to investors in the market. At that time, the investors had only one problem that no matter how to get the allotment of shares in the IPO.
For which investors used to make jugaads like investing from different demat accounts or applying for IPOs as shareholders by investing in its parent company. But ever since investors are suffering in the IPO market, investors are afraid to invest in IPOs.
IPO record was made in 2024
In the year 2024, the IPO market saw a strong boom. This year there was a listing of 268 IPOs including 90 mainboards and 178 SMEs (SMEs) in the Indian stock market. Out of which most of the IPO made investors profit. Through these IPOs, companies raised Rs 1.67 lakh crore from investors. This figure is the highest in the global market.
Only so many IPOs came in 2025
At the same time, in the year 2025, a total of 26 IPOs have come and some more are coming. Most of this are IPOs of SME companies. The number of mainboard IPO is very low, which shows fear in investors about IPOs.
Why are you not earning IPO?
- The biggest reason is that of the IPO gray market premium of companies is very low. Since the IPO open, IPO GMP has been continuously declining. Some GMPs of some IPO go to 7 to 8 percent discount as soon as they open.
- Investors are scared in view of the pressure in the market and are not investing in IPOs. From retail to QIB, they are avoiding investing in IPOs, which has been affected that IPOs are not being able to subscribe.
- It is difficult to make the stock market declining due to geo-political tension, the possibility of increasing inflation and continuous selling from foreign investors. In such a situation, IPO is also not giving returns to investors.
- At this time, if any company is bringing your IPO, then it is looking more expensive on validation basis. In such a situation, the expectation of earning on the listing is already being reduced due to their high price band being high.
- There are no IPOs of big and good companies in the IPO market yet, which investors have confidence or they have the power to give good returns.
These IPOs listed on discount
It is worth noting that the shares of Arisinfra Solutions Limited were list on NSE on 8 % discount today. A few days ago, the IPO of Oswal Pumps Limited was list on 3 percent of the gains, but now it is 8 percent below IPO price. Earlier, the listing of Skoda Tubes shares was at just 5 per cent.
(Note- Take the help of your financial advisor before investing in any IPO.)