Of the 115 stocks that are down from their IPO price, 81 have skidded in double digits. August listed Studio LSD’s stock price has eroded 80%, and the stock is currently trading at Rs 10.40 compared to the issue price of Rs 54. The next in line are shares of ATC Energies System, Shri Kanha Stainless and Cedaar Textile, which have declined 74%, 72% and 72%, respectively. All of them are SME IPOs.
The SME woes do not end here, as Siddhi Cotspin, Kaytex Fabrics, Sundrex Oil Company, Galaxy Medicare, Arunaya Organics, Snehaa Organics, Ganga Bath Fittings, ARC Insulation & Insulators and Gurunanak Agriculture India are other SME IPOs that have seen their share prices plunge below the IPO price between 70% and 60%, indicating risks associated with the smaller names.
The list features mainboard IPOs as well, with deepest cuts seen in Glottis, whose share price has eroded 62%. Jaro Institute of Technology Management and Research shares are down 49.37% while Mangal Electrical Industries has plunged 54%.
The other prominent mainboard names that are currently trading below their IPO price include Arisinfra Solutions (50%), Vikram Solar (-32%), BlueStone Jewellery and Lifestyle (-21%), Vikran Engineering (-19%), JSW Cement (-18%) and TruAlt Bioenergy (-17%) among others have seen double-digit decline.
Meanwhile, Shadowfax Technologies, Saatvik Green Energy, HDB Financial Services, PhysicsWallah and Pine Labs have witnessed a single-digit decline.
India’s only pure-play AI company Fractal Analytics, which made a market debut on Monday at a discount to the price band, ended lower on Tuesday below the IPO price.
Also read: Fractal Analytics rebounds from weak debut; shares jump 4% as brokerage initiates coverage with 40% upside call
While Ola was listed in August 2024 when the markets were buoyant, much of 2025 remained uncertain because of Trump’s tariffs, India-Pakistan tension and Israel-Palestine war, impacting overall sentiments. Yet the market raised nearly 1.8 lakh crore in 2025, carrying the momentum of 2024 when the companies garnered Rs 1.59 lakh crore from the primary markets.
Bright spot
Investors can take heart from the incredible growth in many stocks. Of the over 200 companies that have launched their IPOs (SME IPOs on BSE not included) in this period, 20 have turned multibaggers, while 60 others have given double-digit returns.
Anondita Medicare is the top gainer with 469% while Tankup Engineers (329%), Sacheerome (244%) and Monolithisch India (217%) are top performers.
What’s in store?
India entered 2026 with one of the biggest IPO pipelines in its history, with over 190 in all set to raise over Rs 2.5 lakh crore this year.
But the activity so far has been muted. In January, the mainboard segment saw just three IPOs, raising a modest Rs 4,765 crore. According to Prime Database, 84 companies have already received Sebi approval and plan to raise around Rs 1.14 lakh crore. Another 108 companies are awaiting regulatory clearance, collectively seeking Rs 1.46 lakh crore.
Also read: SBI’s 70% rally narrows valuation gap with HDFC Bank, ICICI — buy, hold or book profits?
Vinit Bolinjkar, Head of Research at Ventura, points out three key factors behind the slowdown — corrections in mid- and smallcaps, FII outflows and post-Budget volatility. “Companies are delaying launches for better valuations. Reduced exposure to Indian equities by FIIs is further depressing sentiment,” he says.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)