The IPO market: a whirlwind of hype and heartbreak. Many recent initial public offerings (IPOs) have generated massive social media buzz, promising exciting returns for investors. However, a closer look reveals a concerning trend: many of these high-profile listings have failed to deliver on their initial promises, leaving investors disappointed. But why? Let's dive in.
Over the past couple of years, we've witnessed a flurry of IPOs that created a frenzy of excitement, fueled by social media hype. Unfortunately, the post-listing performance of these companies often fell short of investors' expectations.
Let's take a look at some examples:
| Stock Name | Listing Date | Issue Price (₹) | Listing Price (₹) | Lifetime Low (₹) | % Fall from Issue Price* | Current Price** (₹) |
| :--------------------- | :-------------- | :-------------- | :---------------- | :--------------- | :----------------------- | :------------------ |
| Ola Electric | August 09, 2024 | 76 | 76 | 39.6 | ▼ 47.8% | 42.3 |
| Honasa Consumer | November 07, 2023 | 324 | 330 | 197 | ▼ 39.0% | 290 |
| Swiggy | November 13, 2024 | 390 | 420 | 297 | ▼ 23.8% | 394 |
| NTPC Green Energy | November 27, 2024 | 108 | 111.5 | 84.5 | ▼ 21.7% | 98.4 |
| Lenskart | November 10, 2025 | 402 | 395 | 356 | ▼ 11.4% | 408 |
| HDB Financial Services | July 02, 2025 | 740 | 835 | 705 | ▼ 4.7% | 732 |
| Tata Capital | October 13, 2025 | 326 | 330 | 318 | ▼ 2.3% | 325 |
*Percentage calculation done using lifetime low and issue price.
**Current price as of November 14, 2025.
As the table clearly illustrates, most of these IPOs have struggled, with many trading significantly below their initial issue prices. Some are still trying to recover from the initial post-listing slump.
Let's break down some of the key players and their struggles:
Ola Electric Mobility: Remember the hype around Ola Electric? This electric two-wheeler company saw its stock plummet by a staggering 47.8% since its listing. This decline is largely due to increased competition, with rivals like Bajaj Auto and TVS Motor surpassing Ola Electric in sales. And this is the part most people miss: Another listed competitor, Ather Energy, is also rapidly gaining ground, further eroding Ola's market share. Revenue for Q2FY26 was ₹690 crore, down 16.6% quarter-over-quarter and 43.1% year-over-year, while losses continue to widen at ₹418 crore. This led management to decrease the full-year revenue guidance to ₹3,000–₹3,200 crore from ₹4,200–₹4,700 crore.
Swiggy: Swiggy, a leading food delivery service, generated considerable excitement before its IPO, positioning itself as a strong competitor. However, the stock has declined by as much as 23.8% compared to its issue price. And this is where it gets controversial: The company has continued to face profitability challenges despite its scale. In Q2FY26, revenue increased from ₹3,601 crore to ₹5,561 crore year-over-year; however, net losses widened to ₹1,092 crore in Q2FY26. Swiggy is adding around 40-50 dark stores per quarter, significantly behind Blinkit, which is adding 200-250 stores per quarter, resulting in quick commerce market share losses and high competition from other competitors like Zepto. The continuation of heavy losses in both food delivery and Instamart led to the second ₹10,000 crore fundraise in less than a year.
NTPC Green Energy: The NTPC Green Energy IPO attracted investors with its promise of clean energy and future growth in the renewable energy sector. But here's where it gets controversial: The stock declined 21.7% from its IPO issue price. This fall came after the expiration of a 3-month lock-in period that accounted for the release of 183 million shares. This large supply was unlocked into the market, triggering selling pressure, marking a new low for the stock. Another key factor is Foreign Institutional Investors (FIIs) selling in NTPC Green Energy stock. In the last three quarters, FIIs have been reducing their stake in the company, from 2.18% in December 2024 to 1.85% in June 2025.
Honasa Consumer (Mamaearth): Honasa Consumer, one of the largest digital-first beauty brands, benefited from India's D2C trend. But what happened? Post-listing, shares dropped below the IPO price and hit an all-time low of ₹197.5 (over 39.04% below the listing price). The stock's poor performance was a consequence of inconsistent profitability and a decline in sales. High competition and inventory write-downs were other reasons that impacted the company’s stock price. Currently, the shares have recovered some ground and trade around ₹290.8 apiece, but are still below their IPO issue price of ₹324. In Q2FY26, Honasa Consumer posted a net profit of ₹38 crore compared to a loss of ₹15 crore in the same quarter last year.
Overall, the recent IPOs show a clear pattern of underperformance, driven by factors like reduced guidance, widening losses, valuation concerns, and operational challenges. Despite the strong pre-listing buzz, most of these companies failed to meet expectations, leading to a softer market response.
What are your thoughts on this trend? Do you think the market is overvaluing certain companies? Share your opinions in the comments below!
