In 2024, there has been a significant increase in capital raised through IPOs, with 75 companies raising over Rs 1.2 lakh crore. However, the performance of these new entrants has been mixed, as almost 40% of them are currently trading below their issue prices.

This decline in stock prices follows a market correction that started in October, affecting even those companies that initially had strong listing day gains. Notable companies like ECOS India Mobility, Apeejay Surrendra Park Hotels, and Ola Electric Mobility have all seen their stock prices fall below their respective issue prices after promising debuts. For example, ECOS India Mobility saw a surge of over 33% on its first day but is now trading 1% below its issue price. Similarly, Apeejay Surrendra Park Hotels and Saraswati Saree Depot, which both had gains of more than 31% on debut, are now facing discounts of 4% and 25% to their issue prices, respectively.

The current market conditions raise concerns about the sustainability of recent IPO valuations.