September was a busy month for primary market investors with as many as 25 mainboard issues hitting Dalal Street but the majority of them failed to live up to the expectations of the investors.
All these 25 IPOs cumulatively raised more than Rs 13303.43 crore from investors. However, only 18 of these 25 issues were listed in September 2025.
The 18 listings of September delivered an average listing pop of little more than 6 per cent, with only seven issues listing at with a premium of 10 per cent over above. Interestingly, the same number of issues delivered flat to negative listing for the investors, while the remaining four were listed with mild single digit premiums.
Urban Company was the only exception, which delivered a listing pop of nearly 58 per cent. On the other hand, BMW Ventures was listed with a discount of 21 per cent, while Epack Prefab Technologies made its debut at 10 per cent discount. Both the issues were listed on September 30.
According to market experts, a flood of primary market issues amid jittered market sentiments, rich valuations, lack of strong fundamentals have dented the sentiments for recent listings. Some experts believe that the current overdose of IPOs has created a mismatch of demand and supply.
The recent wave of IPOs in the Indian market has reduced listing gains, and this is a classic case of too much supply meeting limited demand. Over the last few months, the primary market has seen a surge in IPO activity often with multiple issues opening in the same week. This leads to Investor money being split across issues, said Shivani Nyati, Head of Wealth at Swastika Investmart.
There is limited liquidity in the market and the scope for over enthusiasm and sudden spurt in prices on the listing day gets reduced, said Jyoti Prakash Gadia, Managing Director at Resurgent India – Category 1, Merchant Bank. “Investor awareness is increasing and they are becoming more discerning to look at actual performance before betting on volatility,” he said.
Market participants believe that in the ongoing flurry of IPOs, valuations leave a little-to-no comfort for the investors. IPOs are priced aggressively, taking the growth potential of the next 2-3 years, which dent their listing prospects. Experts believe that investors are not being compensated for IPO risk, leaving limited scope of listing pop.
Elevated valuations are one of the biggest reasons behind the recent disappointment in IPO listings. The valuations of many new issues are coming at full or even premium pricing, which leaves very little margin of safety for investors and limits room for any listing-day upside, said Nyati.
“There is a need to have more conservative and realistic valuations to focus on long term growth based on actual prospects. Leaving something on the table for the investors may be a possible strategy to please and attract bidders. A realistic picture needs to be perceived by the investors instead of going overboard,” says Gadia
Even IPOs with strong QIB numbers, sound anchor books and even multiple subscription figures are falling flat on listing. Apparently, big shots of Dalal Street have also failed to woo interest in the primary market. Overall, the IPO season might be very active, but the investors interest has taken a backseat, leading to numb performances.
The role of the QIBs is to provide stability in the market rather than indulging in speculative activities to make a quick buck. They are expected to reduce excessive volatility in the post listing phase. Capital market Investments are required to move in the direction of long term asset building rather than focusing on short term temporary gains, said Gadia from Resurgent India.
“QIBs often apply in size to signal confidence and attract retail/HNI participation. But in crowded IPO seasons, some are simply riding momentum to exit fast, especially in IPOs priced at the higher end,” said Nyati from Swastika.