Why IPO Pops Don't Tell the Whole Story

Up and Down IPO listing gains have been uneven: 9.1% in May, 10.8% in June, 15.6% in July, and 10.6% in August.

- Dipti Sharma

India's benchmark Nifty 50 index has been on a steady climb since April despite the US's tariff pressures and other macroeconomic issues, but initial public offerings (IPOs) have struggled to deliver consistent listing-day returns to investors.

Listing day is when a firm's shares debut on the stock exchanges following an IPO. The difference between the share price on listing day and the price at which the shares were sold during the IPO is keenly watched, especially by investors who have bet their money on the firm's growth.

Average listing-day returns have swung from 9.1% in May to 10.8% in June, 15.6% in July, and 10.6% in August, show data from Prime Database.

And while the Nifty 50 has gained 5.2% so far in 2025 (as of 9 September), the Nifty IPO index has declined 1.2%, per Capitaline data.

How important are listing-day returns for investors? Mint explains.

What factors influence listing-day returns?

Listing-day returns are driven by a wider set of factors than just the market's trajectory, said Hari Shyamsunder, vice president and senior institutional portfolio manager at Franklin Templeton Emerging Markets Equity, India.