Listed IPO: Between 2024 and the beginning of 2025, major companies (mainboard and SME) entered the public stock market list.
if you have already invested in an IPO, you might have learned something from it. However, it might not be feasible to learn through IPO (Initial Public Offering) investing all the time. Therefore, here is a blog that can help you understand the recent IPOs and the mixed bag, full of all the stock market lessons.
Investors can learn valuable insights to navigate this dynamic market of IPO investing. After reading this blog, they might be able to tackle market volatility in terms of IPOs more effectively.
Let’s get started with what we have started to learn from the IPOs of 2025.
2025: A Year Of Contrasts in the IPO Market
As 2025 begins, we hear about more companies drafting their documents with the market regulator, the Securities and Exchange Board of India (SEBI), and more and more businesses are planning to enter the stock market.
So, as you are all set and ready to invest in an IPO through your best trading app, here are a few essential points to stay updated about the IPO world:
- Experts anticipate that the total IPO fundraising might exceed ₹2 lakh crore.
- The Indian IPO market seems to have become robust with heightened activity and investor interest.
- Some IPOs, like Standard Price Lining Laxmi Dental Ltd. and Indo Farm Equipment, debuted with impressive listing gains.
But what about the others, and what had led to their successful IPO listing? Let us look at it deeply.
Anatomy Of A Successful IPO: Laxmi Dental Ltd.
One of the most striking IPO successes of 2025 so far is Laxmi Dental Ltd. This IPO was in the news for its listing gains. ItO was oversubscribed a staggering 112 times, demonstrating an overwhelming investor demand.
But what factors contributed to this success? Let us look at some of its IPO features:
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Strong Company Fundamentals
Laxmi Dental Ltd. likely possesses robust financials. It embodies a compelling business model and a strong dental product industry position.
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Favourable Market Conditions
The overall positive sentiment in the IPO market has increased investor appetite for Laxmi Dental’s offering.
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Effective IPO Pricing
The IPO was likely active. It seems to balance raising sufficient capital for the company and ensuring listing gains to entice investors.
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Positive Growth Outlook
Investors likely had perceived a positive growth trajectory for the dental industry and Laxmi Dental’s potential within it.
Lessons for investors through Laxmi Dental IPO are as follows:
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Thorough Due Diligence
The success of Laxmi Dental underscores the importance of conducting thorough due diligence before investing in an IPO. Therefore, investors must check the company’s financials, understand its business model, and assess its growth prospects.
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Recognise Stock Market Sentiment
You must pay attention to the overall market sentiment and investor appetite for IPOs. A bull market might amplify listing gains, while a bear market can dampen them.
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Evaluate IPO Pricing
Assessing whether the IPO is priced reasonably compared to its peers and industry or sectoral benchmarks can help. An overpriced IPO might struggle to deliver significant listing gains. Therefore, it needs to be priced correctly.
Navigating IPO Failures: Learning From Setbacks
It is known that specific data on the worst-performing IPOs of 2025 is limited at this early stage. Therefore, it becomes crucial to acknowledge that not all IPOs achieve stellar success. Some may even underperform or drastically plunge post-listing.
So, what can investors learn from these setbacks?
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Overvaluation Can Backfire
There is generally a lot of hype around the IPOs of popular brands. Due to this hype and market expectations, some IPOs might be overpriced. However, this might lead to potential losses for investors when the price corrects downwards.
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External Factors Matter
Factors beyond a company’s control, such as economic downturns or regulatory changes, might significantly impact its performance and lower its stock price after an IPO.
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Lock-in Periods Can Limit Liquidity
Lock-in periods in a few IPOs, especially pre-open IPOs or pre-IPOs, might restrict the ability of confident investors to sell shares. This might potentially impact liquidity and price discovery or the ability to cash listing gains in the early days of trading.
Lessons for investors in IPO investing:
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Avoid Herd Mentality
Investors should avoid getting swept up in the IPO hype. Therefore, conducting independent research and objectively evaluating the company’s fundamentals is essential.
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Factor In External Risks
Investors can consider external factors, such as economic conditions or regulatory changes, that could impact the company’s performance.
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Understand Lock-in Periods
IPO investors need to be aware of any lock-in period restrictions before investing. These restrictions can impact their ability to exit their investments.
Stallion India Fluorochemicals IPO: A Case Study
Did you recently open your demat app? If yes, you might have seen updates around this recent IPO. The Stallion India Fluorochemicals IPO, which is currently closed for subscription, provided another interesting case study. The high grey market premium (GMP) had suggested strong investor interest. However, it is essential to analyse the offering carefully.
Here are a few essential things to consider in this recently listed IPO:
- The fluorochemicals industry is experiencing growth, which could support Stallion India’s future performance.
- The company plans to use the funds for working capital, capital expenditure, and general corporate purposes, focusing on expansion and growth.
- Assess the competitive landscape in the fluorochemicals industry and Stallion India’s position.
Here are some of the important lessons to learn for investors:
- There is a need to balance GMP with fundamentals. While a high GMP can be a positive indicator, investors must avoid relying solely on it. You can evaluate the company’s fundamentals and growth prospects to make an informed decision.
- Assessing the company’s IPO strategy can help you understand how it plans to use the proceeds and whether this aligns with its growth strategy.
- Investors can consider industry dynamics to gauge IPO performance. You can evaluate the industry’s overall health, trends, and competitive landscape to assess the company’s long-term potential.
Key Takeaways For IPO Investors In 2025
- Due diligence is paramount in IPO investing.
- Biased and emotional investing can lead to potential losses or portfolio underperformance.
- Investors need to remember to diversify their portfolios.
- It is essential to have a thorough understanding of IPO Risks
- Considering your investment horizon can help you filter out suitable IPOs. This is because some IPOs are long-term in terms of potential gains.
- As a practical step, investors can open demat account to stay updated, compare and analyse IPOs, and invest in them. They can also learn about investing in IPOs with new-age and advanced demat apps.
Conclusion
The world of IPO investing is full of swings, from higher listing gains to immediate market plunges. It is loosely predictable and might lead to portfolio underperformance if the investors are not careful or invest under biases. Therefore, an informed investing approach free from investing biases like herd mentality and loss aversion is essential. Furthermore, the investors need to thoroughly learn about, understand and analyse a company’s business before investing. A few examples and lessons from recently listed IPOs are presented above for investor’s perusal.
