India’s top 30 IPOs have shown mixed results in the stock market. A study found that 18 of these large IPOs did not earn returns higher than the CNX500 index, which tracks the performance of the top 500 companies in India. This means that many investors who put money into these IPOs didn’t get the profits they hoped for. Despite the big names and high expectations, most of these IPOs underperformed, showing that a large offering doesn’t always mean better returns.
 

Some of these IPOs even led to losses. Out of the top 30, eight had negative returns, with Reliance Power being the biggest example. When it launched, Reliance Power was highly anticipated, but its stock price dropped by over 80% from its original price, leaving investors disappointed. This serves as a reminder that even large and popular IPOs can struggle to maintain their value over time.
 

There were a few IPOs that posted good results though. Out of all the Top 10 IPOs, only the Zomato IPO had delivered a return that was higher than the CNX500 index. Some of the other successful IPOs include Hindustan Aeronautics, Indian Railway Finance Corp, Sona BLW Precision Forgings and ICICI Lombard. The above examples indicate that despite the fact that most mega-IPOs may underperform the market, there are still some that can provide handsome returns to investors.
 

Most of the IPO companies, especially the ones that have recently gone public, especially within the last two years, have done well than many of the older IPOs. Out of the top 10 IPOs, five were launched in the last two years, including companies like Bajaj Housing Finance, Bharti Hexacom, and Brainbees (First Cry). These companies entered the market during favorable conditions, which may explain their better performance.
 

In 2024, companies from the consumer and financial sectors raised the most funds through IPOs, followed by industrial companies. But overall, large IPOs have not consistently delivered the strong returns investors expected. High valuations and optimistic expectations during market booms often lead to disappointment if the growth doesn’t meet those expectations. For investors, this means that while big IPOs may seem attractive, they come with risks, and not all will offer high returns.