After two years of spectacular gains, the BSE Mainboard IPO Index has lost steam in 2025, slipping over 4% so far this year. The reversal follows an extraordinary run when the index surged over 31% last year and gained 41% in 2023, alongside similar returns in 2021 and 2020.
In other words, despite a brief negative year in 2022, the mainboard IPO index has delivered great gains since 2020. But this year marks a period when momentum has meaningfully cooled.
The weak performance in 2025 reflects volatile market conditions, mixed fundamentals of newly listed companies, and subdued listing gains, all of which have tempered investor enthusiasm toward fresh issues.
The BSE IPO index is designed to measure the performance of companies listed at the Mumbai bourse after the completion of their initial public offering (IPO).
A look at recent listings shows a wide dispersion in outcomes: some stocks continue to trade significantly above issue price while others have slipped sharply below their listing levels.
This divergence underscores that selectivity, not frenzy, is defining the IPO market in 2025, even as the pipeline remains active. Despite the headline decline, stock-level moves have been barbelled — with spectacular winners on one side and deep drawdowns on the other.
