An analysis of 25 venture capital and private equity-backed “new-age” Indian companies that went public between May 2020 and June 2025 paints a less-than-rosy picture: only about one-third have consistently outperformed the market.
As per a white paper by Client Associates, only 36 per cent of IPO investors and 32 per cent of post-listing investors managed to generate positive alpha over the BSE 500 index.
Pre-IPO investors saw comparatively better results, with 43 per cent achieving gains — but mainly when they exited at the right time. Those who sold soon after the mandatory six-month lock-in period typically enjoyed the highest returns, while long-term holders often faced lower or even negative returns.
“The study concludes that while new-age IPOs created substantial excitement and short-term gains, the risk-adjusted returns for retail investors, particularly in the unlisted market, remain questionable when compared to diversified fund-based approaches or established listed alternatives,” the report said.
Although strong subscription demand was a frequent trend, the report notes that most listing gains failed to hold over time.
Long-term performance of new-age IPOs
Leading performers like Ixigo (Le Travenues Technology), Zomato (now Eternal), Nazara Technologies, and PolicyBazaar showcased clear paths to profitability alongside steady revenue growth and improving margins.
In contrast, laggards such as Ola Electric, Paytm, Mobikwik, and FirstCry struggled due to capital-intensive business models, inflated valuations, or challenges in maintaining market share.
“High-profile IPOs such as Paytm and Ola Electric have failed to live up to the hype and have not delivered returns to their investors, due to factors ranging from overvalued IPOs to loss of market share to listed peers post-listing,” the report added.
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