The IPO market in India is booming again. In 2025 alone, nearly 90 companies have raised over ₹1.51 trillion, making it one of the busiest years for new listings in over a decade.
Every few weeks, a new name hits the headlines, and retail investors rush in, hoping to double their money on listing day. But the reality is far less glamorous.
According to market data, nearly 40% of IPOs listed between 2021 and 2025 are now trading below their issue price. That means four out of ten investors who held onto their IPO shares are sitting on losses.
Even the short-term “listing pop” isn’t guaranteed anymore. In 2025, 12 IPOs listed below issue price, and 31 offered gains of just 0-10% hardly the jackpot many expected.
You can track all the newly listed IPOs with their listing gains and current returns for free on Finology Ticker. Just visit the newly listed IPO page on the ticker to see the list.
The Hidden Trend: Promoters Are Cashing Out
Behind the surge in IPOs is a quieter trend that deserves attention: a record rise in Offer for Sale (OFS) transactions, in which promoters and early investors sell their existing shares rather than raising fresh capital for the company.
- 2024: ₹95,285 crore raised via OFS
- 2025 (YTD): Over ₹96,000 crore already raised
If the current pace continues, 2025 will be the first year in India’s history where OFS volumes cross ₹1 trillion.
Since 2015, data show that two-thirds (66%) of all IPO proceeds have gone to promoters and early investors, not to fund business growth.
This matters because when an IPO is mostly an OFS, your money isn’t helping the company expand or innovate; it’s simply buying someone else’s shares.
If you want to know where your money is really going, check the “Issue Type” breakdown on Finology Ticker’s IPO page. It clearly shows how much of the issue is a Fresh Issue (money to the company) versus Offer for Sale (money to existing shareholders).
Mainboard vs SME IPOs – Know the Difference Before Applying
All IPOs aren’t the same. The market broadly has two categories:
- Mainboard IPOs: Usually large, established companies listed on NSE & BSE.
- SME IPOs: Smaller firms listed on NSE EMERGE or BSE SME platforms.
SME IPOs may look attractive with flashy grey market premiums, but they carry much higher risk. The minimum investment is typically above ₹1 lakh, and liquidity is limited, meaning you may not find buyers later.
Mainboard IPOs are relatively stable and transparent, making them a better fit for beginners.
On Finology Ticker, IPOs are neatly divided into Mainboard and SME tabs, making it easier for investors to understand what kind of company they’re applying to and the associated risks.
Follow the Numbers, Not the Noise
Before you rush to apply for any IPO, take five minutes to check three key things:
- Financial Health: Is the company profitable? Has revenue grown consistently over 3 years?
- Valuation: Is the asking price fair compared to industry peers?
- Grey Market Premium (GMP): Does the market expect strong demand?
In 2025, even IPOs with high GMPs have struggled after listing. GMP is useful for sentiment, but not a guarantee.
To make it simpler, Finology Ticker tracks GMPs daily for all active IPOs and presents key financial data such as revenue, profit, and debt trends, saving you the trouble of digging through 400-page offer documents.
The “Flipper” Problem – and Why It Hurts Everyone
One major issue in India’s IPO market is the rise of “flippers” – investors who sell immediately after listing to pocket quick gains.
Data shows that 42.7% of retail investors sell their IPO shares within just a week of listing.
This short-term behaviour adds volatility and weakens price stability. If you’re serious about long-term wealth, focus on businesses you want to own, not just trade.
You can learn about a company’s background, promoters, and business model in the IPO Page itself on Finology Ticker. These summaries are written in plain language, making it easy to understand what you’re investing in.
Why the Easy Money Days Are Fading
The IPO boom between 2021 and 2023 made headlines for massive first-day gains. Remember Nykaa, MapmyIndia, or Paras Defence? But as interest rates rose and valuations stretched, reality set in.
High-profile IPOs, including Paytm, CarTrade, and Zomato, dropped 30-70% from their issue price post-listing. Some have recovered now, but those early falls show why investors must analyse IPOs carefully instead of applying blindly.
This doesn’t mean IPOs are bad; it just means the market has become more selective. Companies with solid earnings and clear growth plans are still doing well, while those listing mainly for promoter exits are struggling to maintain post-listing momentum.
How to Analyse IPOs Smarter
If you’re looking to apply for upcoming issues, here’s a practical approach:
- Check Revenue and Profit Growth for the last 3 years.
- Compare Valuations (P/E or P/B) with listed peers.
- Review Promoter Shareholding and Pledging.
- Read Objects of the Issue to see how funds will be used.
- Review Subscription and GMP Trends.
All this data is available in one place on Finology Ticker’s IPO Dashboard, including subscription levels, listing dates, and post-listing performance.
Example: Fresh Issue vs Exit Story
Take two recent IPOs:
- Tata Technologies (2023): Entirely an OFS. Promoters and investors booked profits. Stock listed strong but corrected after.
- EMS Ltd (2023): Major portion was a Fresh Issue to fund expansion. It has since traded above its issue price due to visible growth.
The takeaway? IPOs, where companies raise money to expand operations, usually perform better than those dominated by investor exits.
You can verify this mix for any company on Finology Ticker before applying – it’s shown under “Issue Type Breakdown”.
IPO Investing Needs Research, Not Luck
The IPO market can be rewarding, but only when backed by informed decisions.
Blindly applying because everyone else is can lead to disappointment.
With tools like Finology Ticker, you can:
- Check fresh issue vs OFS split.
- Track GMP and subscription trends.
- Compare Mainboard vs SME IPOs.
- Review company financials at a glance.
This helps you separate hype from facts before you invest.
Final Thoughts
India’s IPO pipeline looks strong for the next few years, but investors must remember: not every IPO is a growth story; some are exit stories.
The line between opportunity and risk is just a few clicks away.
Before you apply, look beyond the headlines.
Check the numbers, understand where your money goes, and make a decision based on data, not excitement.
With Finology Ticker, you can do all of this for free, from comparing fresh vs OFS issues to checking company financials and real-time GMPs.
In the end, IPO investing isn’t about luck. It’s about clarity, and the correct data helps you see it clearly.
Finology is a SEBI-registered investment advisor firm with registration number: INA000012218.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
