The Indian IPO market presents a complex picture as of August 2025. On one hand, it is characterized by robust fundraising and high volumes, positioning India as a global leader in the IPO space. On the other, a significant number of companies that have gone public since 2021 have failed to hold their value, leading to substantial wealth destruction for investors.

Recent data indicates that India's IPO market has shown remarkable resilience, with 108 IPO deals raising $4.6 billion in the first half of 2025. Projections suggest that total fundraising could exceed ₹2 trillion in 2025, driven by strong investor enthusiasm and sectoral diversity. India, along with the US and Greater China, launched over 100 IPOs in the first half of 2025, demonstrating its active capital markets.

However, beneath this veneer of success lies a challenging reality for many investors. As per an analysis updated to August 3, 2025, out of 280 IPOs since 2021, 15 have seen their values crash by over 50%. This trend of deep erosion in value is evident across a diverse range of companies.

Key Underperforming IPOs and Their Declines:

• Popular Vehicles: This automobile dealership saw its shares decline by 58.6% from its issue price. Its IPO in March 2024 debuted at a discount.
• Suryoday SFB: The small finance bank has experienced a significant drop of 58.2%.
• Fino Payments Bank: This payments bank's shares have fallen by 55.7%.
• Dreamfolks Services: The airport and travel services aggregator, which had its IPO in August 2022, has seen its share price fall by 53.3%. As of July 9, 2025, its stock hit a record low, down 49% from its IPO price, amidst concerns about direct partnerships between banks/card networks and airport lounge operators.
• Credo Brands: Known for its 'Mufti' brand, Credo Brands' shares have crashed by 52.8%. Recent reports from August 1, 2025, indicate a 53% discount from its IPO price of ₹280, following disappointing June quarter performance.
• Star Health: The health insurance provider's stock is down 51.5%.
• Paytm: One of the most anticipated digital payments IPOs, Paytm has seen its value halve, with a 50.0% decline.
• ESAF SFB: Another small finance bank, ESAF SFB, has witnessed a 48.2% reduction in value.
• Muthoot Microfin: This microfinance institution's shares are down 46.0%.
• Ola Electric: Despite being a highly anticipated listing, Ola Electric, which had its IPO from August 2-6, 2024, and listed on August 9, 2024, has seen its value drop by 46.6%. The current trading price is significantly lower than its ₹76 per share IPO price.
• Barbeque Nation: The casual dining chain's stock has declined by 45.7%.
• RK Swamy: The marketing services provider, which listed in March 2024, has seen a 42.7% decrease in its share price. It had initially listed at a 13% discount to its IPO price.
• Vodafone Idea: While not an IPO but a Follow-on Public Offering (FPO) in April 2024, Vodafone Idea's shares have fallen by 39.9%, reflecting continued challenges for the telecom operator.
• TVS Supply Chain: This logistics firm's stock is down 37.0%.
• Ideaforge Tech: The drone manufacturer, which went public in June 2023, has seen its share price fall by 35.5%. As of August 1, 2025, its one-year performance shows a decline of nearly 40%.
• Rishabh Instruments: This company's shares are down 35.2%.
• FirstCry: The omnichannel platform for baby products, whose IPO was recently in August 2024, has experienced a 25.2% decline.
• Akums Drugs: Akums Drugs, which listed in August 2024, has seen its value erode by 24.7%.

This widespread underperformance suggests that while the appetite for new listings remains strong among Indian investors, the fundamental valuations and long-term prospects of many companies coming to market may not always align with initial expectations. The trend underscores the importance of thorough due diligence for investors participating in IPOs, especially in a market where a significant portion of recent listings have failed to deliver positive returns. Despite the overall positive momentum in terms of fundraising, the substantial wealth destruction observed in these "overhyped" IPOs serves as a cautionary tale for the Indian investment landscape.