The euphoria surrounding India’s record-breaking primary market in 2025 has met a sobering reality. As of March 16, 2026, a comprehensive analysis of the “new-age” tech cohort reveals that 55% (8 out of 15) of the venture-backed startups that went public last year are now trading below their initial offer price.
While 2025 saw a landmark ₹1.75 lakh crore raised through mainboard listings, the post-listing performance has increasingly diverged into a “quality vs. hype” narrative.
The Breakdown: Winners vs. Underperformers
The market is showing a clear preference for companies with established profitability over those promising distant growth. While large-scale tech IPOs like Meesho and Groww have maintained significant premiums, the mid-market and smaller tech issues have struggled.
| Top Performers (Above Issue Price) | Underperformers (Below Issue Price) |
| Stallion India Fluorochem (+146%) | Glottis (-53%) |
| Aditya Infotech (+122%) | VMS TMT (-46%) |
| Ather Energy (+121%) | Kiaasa Retail (-42%) |
| Meesho (+78%) | Mobilise App (-40%) |
| Groww (+14% and rising) | Shadowfax Technologies (-12%) |
Why the Slump?
Market analysts point to three primary factors for the current “sea of red” in the 2025 vintage:
- The “Conflict Discount”: The ongoing US-Iran war has triggered massive FII outflows (nearly ₹3.5 lakh crore in Q1 2026 alone), with investors fleeing “risky” new-age stocks for safe-haven assets.
- Aggressive Pricing: Many 2025 startups were priced at the upper end of valuation bands, leaving little “margin of safety” for retail investors once the initial listing buzz faded.
- Lock-in Expiry: As the mandatory 6-month and 1-year lock-in periods for pre-IPO investors expire, significant selling pressure has hit the secondary market.
Institutional Resilience
Interestingly, “Heavyweight” IPOs—those raising over ₹10,000 crore—have shown much higher resilience. Firms like LG Electronics India and Tata Capital have largely stayed in the green, suggesting that institutional backing and large ticket sizes act as a buffer against volatility.
Impact on 2026 Pipeline
The poor performance of the 2025 cohort has already caused ripples in the 2026 pipeline. As reported earlier this week, PhonePe has paused its IPO plans, and others like Zepto and Flipkart are reportedly re-evaluating their valuation expectations to avoid the “listing-day heartbreak” seen by their predecessors.
“The market is no longer rewarding just ‘growth.’ It is now demanding operational improvements and sustainable unit economics before it justifies a premium,” says Ganesh Jagdishen, CEO of Plutus Global.
