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Less than half of the IPO's listed during the last six years are trading below their issue price, and nearly 19 per cent of them are at a loss of 25-50 per cent from their IPO price, suggests data shared in a report by Axis Capital.
The report data showed that around 180 out of 374 companies listed in the last 6 years are currently trading below their issue price. Among these, nearly 19 per cent of all listed companies, or 70 firms, are trading at a loss of 25 to 50 per cent compared to their issue price. In addition, 34 companies, or 9 per cent, have witnessed even steeper declines and are trading more than 50 per cent lower than their issue price. The report further highlighted that 50 companies, or 13 per cent, are currently trading at losses ranging between 10 and 25 per cent, while 26 companies, or 7 per cent, are trading up to 10 per cent below their issue price. This indicates that a sizable portion of IPOs listed in the last six years continue to face pressure well after listing. Data in the report also showed that around 194 out of 374 companies, or roughly half of all listed IPOs in the last six years, are trading above their issue price. Looking at companies trading in profit, the report noted that 57 companies, or 15 per cent of the total companies, are trading more than 100 per cent higher than their issue price. Another 44 companies, or 12 per cent, have gained between 50 and 100 per cent. About 35 companies, or 9 per cent, are up between 25 and 50 per cent, while 25 companies, or 7 per cent, are trading 10 to 25 per cent higher. In addition, 33 companies, or 9 per cent, are trading up to 10 per cent above their issue price. The report, which reviews the performance of Mainboard IPOs and FPOs listed between July 2020 and January 2026, covers 374 companies across different market cycles. Overall, the findings of the report suggest that while headline listing gains often draw investor attention, long-term performance remains mixed. The data showed that investing in IPOs over the last six years has delivered strong gains for some companies, but a large number continue to remain under pressure, even several years after listing. An Initial Public Offering (IPO) is the process through which a private company raises capital by selling shares to the general public for the first time. It transforms a private firm into a publicly traded one, allowing it to list on stock exchanges. (ANI)
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