Top IPO Picks: Investors are currently focused on a few select upcoming IPOs in the current market environment, expecting better returns.
The first six months of 2025 weren't particularly impressive for the IPO market. Several new companies entered the stock market from January to June, but most disappointed investors. According to recent data from Business Standard, a total of 19 companies were listed on the stock exchange during H1CY25, but more than half of them are now trading below their listing price. This decline has increased investor anxiety.
53% of IPOs Show Losses, Eroding Investor Confidence
Of these 19 companies, 10 are currently trading below their listing price. This means that approximately 53 percent of investors in these IPOs have incurred losses. These companies raised a total of ₹29,834 crore from the market, but many companies failed to meet expectations in terms of returns. Notably, the shares of some companies are trading even lower than their issue price, further increasing the losses.
The companies whose shares have declined after listing include Stallion India Fluorochemicals, Indo Farm Equipment, Laxmi Dental, Denta Water and Infra Solution, Borana Weaves, Ather Energy, Standard Glass Lining Technology, Schloss Bangalore, Belrise Industries, and Arisinfra Solutions. Among these, only Laxmi Dental, Borana Weaves, and Standard Glass are currently trading above their issue price.
Slow Performance in SME IPOs as well
Not only on the main board, but investors also didn't see significant profits in IPOs of SMEs (Small and Medium Enterprises). In 2025, 82 companies in the SME segment entered the stock market and raised approximately ₹3,645 crore. However, the shares of 46 of these companies are trading below their listing price, and the shares of 45 companies have fallen below their issue price.
This clearly indicates that there was more risk in IPOs of smaller companies as well, and investors had to proceed cautiously.
IPO Pricing Became a Major Reason
According to Sunny Agarwal, an analyst at SBICap Securities, most companies sold their shares at such high prices that investors didn't get a chance to make profits after listing. In other words, the pricing of IPOs was perfect but expensive. This led to losses for new investors instead of gains.
Prashant Tapase of Mehta Equities also shared a similar opinion. He stated that many IPOs were of companies whose financial health and future growth lacked concrete data. When the companies' results came out, they were weaker than expected, and this led to a decline in the shares.
Market Volatility Also Shook Confidence
Not just the weaknesses of the companies, but the fluctuations in the secondary market also affected the IPO market. There was continuous volatility in the market in H1CY25, which led retail investors to book profits quickly. The result was that the gains in the shares after listing couldn't last.
According to Tapase, investors have become more cautious now and want to avoid risk. In such a situation, they are exiting IPOs quickly and are taking a short-term approach instead of a long-term one.
Where to Invest Now, Know the Names of the Top 4 Companies
However, despite the losses in H1, experts believe that many good IPOs could come in H2CY25 as well. But now, investors will have to choose carefully where to invest their money. According to experts, there are some companies that could give b returns in the future.
- Standard Glass Lining Technology: Sunny Agarwal believes that this company is in a position to benefit from the ongoing capex growth in the pharma and chemical sectors. The company's technology and products are crucial for these industries, and its scope could increase in the coming time.
- Oswal Pumps: This company has a b hold, especially in rural and semi-urban areas. Its products are quite popular in water supply, irrigation, and domestic use. According to Tapase, this company could benefit from the growing demand in villages and government schemes.
- Belrise Industries: Belrise is an auto component manufacturer and its export network is becoming ber. Due to the increasing demand in the EV sector and international tie-ups, this company has good growth potential. Both Tapase and Agarwal are positive about this company.
- Ajax Engineering: This company has emerged as a major player in the infrastructure sector. Its order book is quite b, and it is directly benefiting from the ongoing capex cycle in India. Its position in construction machinery is quite b.
The Number of New IPOs Will Increase, But the Focus Will Now Be on Valuation
Due to good liquidity in the market, the number of IPOs in H2CY25 could also be good. Promoters and merchant bankers are ready to cash in on this opportunity, but now investors will be more cautious about the valuation of each company.
For this reason, now money is being invested by looking at the fundamentals, growth track record, and order book of the companies instead of just brand names or sector-based investments.
The first half of 2025 may have been difficult for investors, but in the second half, there could be good opportunities again for those who invest wisely. The market is currently keeping an eye on four names: Standard Glass, Oswal Pumps, Belrise Industries, and Ajax Engineering.
