IPO buzz fizzles: 6 out of 11 stocks of 2025 sink below issue price; Ather Energy, Quality Power, Indo Farm lead fall

India's initial public offering (IPO) market, which had a blockbuster run in the past two years, is facing serious slowdown as many companies have delayed their listing plans due to weak

investor sentiment. The current lull in the IPO market can be attributed to multiple headwinds such as global economic uncertainty amid U.S. tariffs, inflationary pressures, geopolitical

tensions, weak corporate earnings, and subdued performance on newly listed stocks.

As per exchange data, six out of 11 listed IPOs in 2025 are trading below their issue price despite receiving good responses for their public offerings. Shares of electric two-wheeler

manufacturer Ather Energy, Quality Power Electrical Equipments, Dr. Agarwal's Health Care, Stallion India Fluorochemicals, Laxmi Dental, and Indo Farm Equipment have fallen below their issue

price.

On the other hand, Hexaware Technologies, Ajax Engineering, Denta Water and Infra Solutions, Quadrant Future Tek, and Standard Glass Lining Technology shares managed to trade below their IPO

price.

The worst performers among the listed entities of 2025 are Indo Farm, Stallion India, and Quality Power. While shares of Indo Farm and Stallion India have declined 28% and 21.5% below their

issue prices, Quality Power shares are down over 11%.

The newly listed entity, Ather Energy–the first mainboard IPO of FY26 that came after a gap of two months–currently trades 5.6% below its IPO price.

Meanwhile, Quadrant Future Tek, Ajax Engineering, and Standard Glass were among top performers. Quadrant Future Tek has delivered a solid return of 62% to its shareholders over its IPO

price, while Ajax Engineering and Standard Glass shares are up by 16% and 9%, respectively, against their issue prices.

According to market experts, the dry spell in the IPO market will end soon as secondary market has seen remarkable recovery despite multiple headwinds such as Indo-Pak conflict, Trump’s

tariff tensions, and global economic growth concerns.

The domestic benchmark indices BSE Sensex and NSE Nifty have risen over 10% from their recent lows, driven by increasingly accommodative monetary policies, strong macros, and supportive

market conditions.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said the IPO market has a direct correlation to the performance of the secondary market. “During bullish markets IPO market

also does well and vice versa. The sharp correction in Nifty from the peak of 26,277 in September 2024 impacted sentiments in the IPO market, too.”

According to Bajaj Broking Research, the slowdown in the IPO market has been impacted by market volatility, tighter liquidity, regulatory scrutiny, and cautious investor sentiment. “High

bond yields, global uncertainties, and concerns over valuations have made companies delay listings despite receiving SEBI approvals,” the brokerage said in a note.

“Over the next 12-18 months, a revival is likely if interest rates ease, market volatility reduces, and corporate earnings remain strong. Stricter SEBI regulations have increased

transparency but also extended IPO preparation timelines, prompting companies to carefully plan their market entry,” it added.

Despite persistent pause in mainboard IPO listings, Indian primary market continues to see surge in fresh filings. Around 80 companies have filed their Draft Red Herring Prospectuses (DRHP)

with the capital market regulator Securities and Exchange Board of India (SEBI) so far in the calendar year 2025, while nearly 40 companies have received regulator’s approval to launch their

public issues.

The IPO pipeline remains strong as 58 companies proposing to raise around ₹1 lakh crore are presently holding SEBI approval waiting to hit the market, while another 72 companies looking to

garner about ₹1.12 lakh crore are awaiting green signal from the regulator, as per PRIME Database.

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