Introduction:
Between fiscal years 2022 and 2025, the Indian IPO market underwent notable transformations driven by changing investor attitudes, capital availability, and economic conditions. Following a surge post-2023, IPOs have become a prevalent fundraising method across industries. This report analyzes IPO performance, focusing on key metrics like investor behavior (Qualified Institutional Buyers, Non-Institutional Investors, Retail Individual Investors), subscription levels, first-day trading gains or losses, and differences between expected and actual fundraising amounts. Visual data insights illustrate investor impact on IPO outcomes, demand trends, and profit or loss tendencies. By examining these four years, the report sheds light on factors contributing to IPO success in this evolving and increasingly established market.
Trend and Visual Data Analysis:
| CHART | OBSERVATION | INFERENCE |
|---|---|---|
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Compares IPO count across FY22-FY25. FY2024 and FY2025 had the highest IPOs (70+), while FY2023 had 39. | IPO activity surged post-FY2023, signaling favorable market conditions or post-pandemic recovery. |
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In all years, the total amount raised far exceeded the stated issue amount by a lot, with the widest gap in FY2025. | The large and growing gap suggests strong oversubscription, indicating high investor demand beyond initial offers. |
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Highlights IPOs with highest listing gains, such as Sigachi and Vibhor Steel Tubes, with gains over 190%. | Strong listing gains indicate high demand, possible underpricing, and enthusiasm-driven oversubscription |
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Lists IPOs with negative listing returns, like One 97 and Deepak Builders, with losses over 20%. | Poor listing returns highlight overvaluation, low investor trust, or market timing issues. |
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In FY2022, the actual amount raised slightly exceeded expectations. From FY2023 onwards, expected totals surpassed actuals, with the gap widening. | This trend indicates growing optimism or overestimation in fundraising targets. Despite better market activity, actual participation hasn’t met expected demand. |
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Shows investor performance in terms of ratios: ratios dipped in FY2023 but rebounded strongly. NIIs showed the highest volatility and recovery, QIBs rose steadily, while RIIs remained the lowest. | NIIs appear more speculative, QIBs show consistent confidence, and RIIs face constraints. There’s a rising risk appetite post-FY2023, led by institutional and high-net-worth investors. |
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Shows performance in terms of average subscribed amount. QIBs subscribed the most, surging in FY2025; NIIs had moderate growth, RIIs least but steadily increased. The gap widened by FY2025. | QIBs demonstrate strong confidence and risk appetite, NIIs show moderate risk-taking, and RIIs are more cautious, growing slowly. Institutional investors continue to dominate funding. |
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Scatter plot shows a positive trend between the actual total amount raised and listing gains, with a moderate correlation. | Higher demand generally leads to better listing gains, but the relationship isn’t absolute, indicating other qualitative factors play a key role. |
Comparison of Gain% over the years:
Over the past four years, the IPO market has been busy, attracting strong interest from investors. Many companies from different sectors have gone public. Some IPOs delivered big gains, but others offered only modest or even negative returns. In FY22, there was a lot of speculation, leading to extreme results. FY23 was more stable but saw fewer companies. FY24 and FY25 saw a return of speculative interest, with some IPOs doing very well, although some underperformed. Overall, IPO investing remained selective and unpredictable, heavily reliant on company strength and market mood.
Conclusion:
Between FY2022 and FY2025, the Indian IPO market saw shifts from speculative surges to more stable investment behaviors. FY2022 featured high speculation with extreme outcomes, while FY2023 was marked by caution and fewer IPOs. Activity increased in FY2024 and FY2025, focusing on quality. QIBs played a vital role in successful IPOs, significantly influencing demand. NIIs were unpredictable, whereas retail investors maintained a steady, limited presence. The market has become more selective, with significant returns typically linked to well-structured, fundamentally strong companies. A shift towards data-driven decisions and varied investor behaviors indicates a maturing IPO landscape valuing clarity, consistency, and credibility.