These 6 mainboard IPOs of 2024 are now trading over 40% below their issue prices

The IPO market is facing headwinds amid turbulence in the secondary market, with nearly half of the newly-listed companies of 2024 now trading below their issue prices. 

Indian primary markets saw 331 new offerings raise a combined ₹1.68 trillion in 2024. However, market activity has been relatively subdued in 2025. So far, only nine mainboard IPOs have raised approximately ₹15,108 crore, with subscription levels mostly in single digits due to volatility in the secondary markets. Despite this, the IPO pipeline for 2025 remains robust, as 44 companies have received approval from the Securities and Exchange Board of India (SEBI) to launch IPOs, collectively expected to raise around ₹66,095 crore.

Given the ongoing market fluctuations, fundraising via primary markets may see further challenges in the coming months. Weak secondary market performance often leads to a decline in demand for new listings. 

Beaten-Down IPOs:

Here’s a look at some IPOs from 2024 that have seen significant declines and are now trading over 40 per cent below their issue prices.

Popular Vehicles and Services is currently trading at ₹123.90 (as of February 20), down 58 per cent from its IPO price of ₹295. The company’s IPO opened on March 12, 2024, and closed on March 14, 2024. It made a weak debut, listing at ₹289.20, a 2 per cent discount on the NSE. The IPO received a subscription of 1.25 times, with shares offered in a price range of ₹280 to ₹295. The issue consisted of a fresh share issuance worth ₹250 crore and an offer-for-sale (OFS) of 1.19 crore equity shares by private equity firm BanyanTree Growth Capital II LLC.

Baazar Style shares are trading at ₹225.05, down 42 per cent from their IPO price of ₹389. The IPO opened on August 30, 2024, and closed on September 3, 2024. Despite a strong subscription of 40.63 times, Baazar Style shares made a flat debut at ₹389 per share. The IPO included a fresh issue of ₹148 crore and an OFS of 17.65 million shares by existing shareholders, amounting to ₹687 crore at the upper end of the price band, bringing the total issue size to ₹834.68 crore.

Carraro India’s stock is trading at ₹355.10, marking a sharp 49.5 per cent decline from its IPO price of ₹704. The IPO opened on December 20, 2024, and closed on December 24, 2024. Carraro India, a manufacturer of agricultural and construction equipment, listed at ₹660 on December 30, 2024, reflecting a 6.25 per cent discount. The IPO, which received a subscription of 1.12 times, was an entirely OFS-based issue, with promoter Carraro International S.E. divesting 1,77,55,680 equity shares worth ₹1,250 crore.

Godavari Biorefineries shares are trading at ₹173.45, down nearly 51 per cent from the IPO price of ₹352. The IPO opened on October 23, 2024, and closed on October 25, 2024. The stock was listed at ₹308 on the NSE and ₹310.5 on the BSE, a discount of approximately 12.5 per cent. The IPO included a fresh equity sale of ₹325 crore and an OFS of 6.53 million shares. The issue was subscribed 2 times by investors. The OFS component, valued at ₹230 crore, was offloaded by promoters and investors at the upper end of the price band.

Western Carriers is currently trading at ₹94.50, down 45 per cent from its IPO price of ₹172. The IPO opened on September 13, 2024, and closed on September 19, 2024. The stock listed at ₹171 on the NSE, reflecting a marginal 0.58 per cent discount, while on the BSE, it listed at ₹170, down 1.16 per cent from the issue price. The Kolkata-based logistics company raised ₹493 crore through its IPO, which consisted a fresh issue of ₹400 crore and an OFS of 54 lakh equity shares worth ₹92.88 crore. The IPO was subscribed 31.69 times over three days of bidding.

Tolins Tyres shares are currently trading at ₹131.45, down 42 per cent from the IPO price of ₹226. The IPO opened on September 9, 2024, and closed on September 11, 2024. On September 16, the stock listed at ₹227 on the BSE and ₹228 on the NSE, showing minimal movement from its issue price. The IPO, a book-built issue of ₹230 crore, included a fresh issue of 8,849,558 shares and an OFS of 1,327,434 shares. It was subscribed 25.03 times, reflecting strong demand during the bidding process.

Despite a strong IPO market in 2024, several newly listed companies have struggled to sustain their issue prices, largely due to market volatility and subdued investor sentiment. While the primary market pipeline remains strong for 2025, investor caution is evident. Secondary market conditions will likely guide investors’ investment decisions about upcoming IPOs.

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