Startup IPO Reality Check: 8 Of 15 Listings From 2025 Now Trade Below Issue Price

According to a 2026 Moneycontrol analysis, eight of the 15 venture-backed new-age technology and internet companies that went public through initial public offerings (IPOs) in 2025 are currently trading below their issue prices.

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The analysis by Moneycontrol showed that the majority of new technology and internet companies that went public through IPOs in 2025 are trading below their issue prices after listing on the National Stock Exchange of India and BSE Limited. This shows the poor performance of these companies after being listed on the bourses.

A total of 15 new-age technology and internet companies went public through IPOs in 2025, raising nearly ₹40,000 crore. This was more than 35% higher than the roughly ₹29,000 crore raised by 13 similar companies in 2024, according to Moneycontrol.

Only A Few Startups Trade Above Issue Price

Only a limited number of companies from the 2025 startup IPO cohort continue to trade above their listing price. Lenskart, Groww, Meesho, and Ather Energy are some of them.

Some other companies, including Urban Company, BlueStone, and Zappfresh, are trading only slightly above their issue price, indicating limited gains since listing.

According to Moneycontrol, the decline in several startup stocks has occurred during a period of increased volatility in equity markets.

Market Volatility Affects Startup Stocks

Rising geopolitical tensions in West Asia have affected investor sentiment across global equity markets, thereby influencing the performance of recently listed companies.

Deepak Shenoy, founder of Capitalmind, said the conflict has affected overall market performance, and newly listed companies tend to react more sharply to such volatility.

He also noted that the expiry of venture capital lock-in periods after listing can cause increased market supply, which may have a negative effect on stock prices.

The war has also had a negative effect on the investment climate for technology listings, with several startups reviewing their IPO plans due to market uncertainties.

IPO Pricing And Post-Listing Performance

Industry participants said the correction in startup stocks also reflects aggressive pricing during the IPO phase. According to Shriram Subramanian, founder and managing director of InGovern Research Services, IPO valuations in recent years were driven by strong investor demand for high-growth technology companies.

Once companies begin reporting quarterly results as listed entities, investors often reassess growth and profitability metrics.

Subramanian said companies sometimes adjust financial metrics before going public, while operating performance after listing provides a clearer picture to investors.

Pipeline Of Startup IPOs Continues

Despite the correction in some of the startup stocks in the recent past, some companies are gearing up to go public in 2026. PhonePe, Flipkart, Zepto, boAt, Shadowfax, and Infra Market are among the companies that have recently made headlines.

However, some companies may delay their listing plans depending on market conditions and valuation expectations. 

The performance of the 2025 startup IPO cohort illustrates the change in investor sentiment to financial performance and operating metrics after companies begin trading in public markets.