Delhi air pollution44 min ago
What went wrong after listing? Nearly half of IPOs since 2020 trade below issue price
Written By Ankit Kumar
Published: | Updated:
Nearly half of IPOs listed since 2020 are trading below their issue price, highlighting the uneven long-term performance of recent listings. Data from Axis Capital shows that while some stocks delivered strong gains, many continue to face post-listing pressure.
&format=webp&quality=medium)
Nearly half of IPOs since 2020 trade below issue price: Axis Capital report. Source: ANI
The strong buzz around initial public offerings over the past few years masks a far more uneven reality once companies begin trading, with fresh data showing that a significant share of recent IPOs are still struggling well below their issue prices. A report by Axis Capital reveals that less than half of the companies listed in the last six years are trading below their offer price, while nearly one-fifth have seen steep value erosion of 25 to 50 per cent since listing.
Nearly 180 IPOs trade below issue price
According to the report, around 180 out of 374 companies that came to market over the past six years are currently trading below their issue price. This means close to half of all recent listings have failed to sustain their valuation after debut, despite favourable market conditions during parts of this period. The data highlights that post-listing performance has remained under pressure for a sizeable portion of the IPO universe.
Add Zee Business as a Preferred Source
The report shows that nearly 19 per cent of all listed companies, or about 70 firms, are trading at losses of 25 to 50 per cent compared to their IPO price. More worryingly, 34 stocks about 9 per cent of the total are now down over 50 per cent from their issue prices. That’s a steep fall, especially for names that had once drawn heavy investor interest at the time of listing.
Beyond the companies facing severe drawdowns, losses are spread across multiple brackets. About 50 companies, or 13 per cent of the total, are trading 10 to 25 per cent below their issue price. Another 26 companies, accounting for 7 per cent, are down by up to 10 per cent. Put together, the numbers show that the stress on many IPO stocks hasn’t faded with time - it has lingered well beyond the listing buzz.
That said, it’s not all bad news. Around 194 of the 374 IPOs studied - a little over half are still trading above their issue price. In other words, while plenty of listings have disappointed, a similar number have delivered gains for investors willing to hold on after the initial debut.
Big winners drive returns for some investors
Among the profitable listings, returns are sharply skewed towards a smaller group of standout performers. As many as 57 companies, or 15 per cent of the total universe, are trading more than 100 per cent above their issue price. Another 44 companies, or 12 per cent, have gained between 50 and 100 per cent. These stocks have delivered strong wealth creation, offsetting weaker performers for diversified investors.
The report also shows that 35 companies, or 9 per cent, are trading 25 to 50 per cent higher than their issue price.
About 25 stocks - roughly 7 per cent have delivered gains in the 10–25 per cent range, while another 33, or around 9 per cent, are up by less than 10 per cent. These aren’t flashy returns, but they point to steady, incremental gains rather than dramatic post-listing pops. The study looks at Mainboard IPOs and follow-on public offers listed between July 2020 and January 2026, tracking 374 companies across very different market conditions. That stretch includes boom phases, sharp corrections and bouts of volatility, giving a fairly rounded picture of how new listings have actually performed once the early excitement wore off.
- 1
- 2
- 3
- 4
- 5
- 6