| Issuer Company | Issue Type | Issue Price | Listing Day Price |
|---|---|---|---|
| M.V.K. Agro Food Product Ltd | SME | Rs 120.00 | Rs 82.95 (-30.87%) |
| Kalana Ispat Limited | SME | Rs 66.00 | Rs 47.40 (-28.18%) |
| BikeWo GreenTech Limited | SME | Rs 62.00 | Rs 47.25 (-23.79%) |
| Deepak Builders & Engineers India Limited | Mainline | Rs 203.00 | Rs 161.90 (-20.25%) |
| Saj Hotels Limited | SME | Rs 65.00 | Rs 52.45 (-19.31%) |
| JG Chemicals Limited | Mainline | Rs 221.00 | Rs 184.65 (-16.45%) |
| Italian Edibles Limited | SME | Rs 68.00 | Rs 57.75 (-15.07%) |
| Excellent Wires and Packaging Limited | SME | Rs 90.00 | Rs 77.95 (-13.39%) |
| 3C IT Solutions & Telecoms (India) Limited | SME | Rs 52.00 | Rs 45.16 (-13.15%) |
| Paramount Dye Tec Limited | SME | Rs 117.00 | Rs 101.70 (-13.08%) |
| ACME Solar Holdings Limited | Mainline | Rs 289.00 | Rs 253.50 (-12.28%) |
| Jana Small Finance Bank Limited | Mainline | Rs 414.00 | Rs 368.20 (-11.06%) |
| Gopal Snacks Limited | Mainline | Rs 401.00 | Rs 360.05 (-10.21%) |
| EPACK Durable Limited | Mainline | Rs 230.00 | Rs 207.70 (-9.7%) |
| Entero Healthcare Solutions Limited | Mainline | Rs 1,258.00 | Rs 1,149.50 (-8.62%) |
| R K SWAMY Limited | Mainline | Rs 288.00 | Rs 263.25 (-8.59%) |
| DCG Cables & Wires Limited | SME | Rs 100.00 | Rs 91.55 (-8.45%) |
| Sona Machinery Limited | SME | Rs 143.00 | Rs 131.25 (-8.22%) |
| Western Carriers (India) Limited | Mainline | Rs 172.00 | Rs 159.45 (-7.3%) |
| Western Carriers (India) Limited | Mainline | Rs 172.00 | Rs 159.45 (-7.3%) |
Content:
Understanding IPO Failures
IPO failures occur when a company’s shares fail to generate investor interest during its initial public offering. This can result from overpricing, weak financials, or poor market conditions, leading to a lackluster subscription or negative post-listing performance.
Market timing plays a crucial role in IPO success. Economic downturns or market volatility can deter investors, even if the issuing company has strong fundamentals. An unfavorable macroeconomic environment can thus lead to an IPO failing to meet its objectives.
Failed IPOs reflect a mismatch between investor expectations and the company’s valuation or growth story. They highlight the importance of proper pricing, transparent communication, and robust business fundamentals in attracting investor confidence.
List Of Failed IPOs In India
| Issuer Company | Issue Type | Listing Day Price Rs. |
| Capital Small Finance Bank Limited | Mainline | 434.30 (-7.2%) |
| Western Carrie(India) Limited | Mainline | 159.45 (-7.3%) |
| Vishwas Agri Seeds Limited | SME | 83.60 (-2.79%) |
| Godavari Biorefineries Limited | Mainline | 342.85 (-2.6%) |
| Sagility India Limited | Mainline | 29.36 (-2.13%) |
| BikeWo GreenTech Limited | SME | 47.25 (-23.79%) |
| Saj Hotels Limited | SME | 52.45 (-19.31%) |
| Italian Edibles Limited | SME | 57.75 (-15.07%) |
| Excellent Wires and Packaging Limited | SME | 77.95 (-13.39%) |
| 3C IT Solutions & Telecoms (India) Limited | SME | 45.16 (-13.15%) |
| Paramount Dye Tec Limited | SME | 101.70 (-13.08%) |
| Jana Small Finance Bank Limited | Mainline | 368.20 (-11.06%) |
| Gopal Snacks Limited | Mainline | 360.05 (-10.21%) |
| Entero Healthcare Solutions Limited | Mainline | 1,149.50 (-8.62%) |
| Western Carrie(India) Limited | Mainline | 159.45 (-7.3%) |
| Popular Vehicles & Services Limited | Mainline | 276.25 (-6.36%) |
| Ztech India Limited | SME | 105.00 (-4.55%) |
| M.V.K. Agro Food Product Ltd | SME | 82.95 (-30.87%) |
| Kalana Ispat Limited | SME | 47.40 (-28.18%) |
| Deepak Builde& EngineeIndia Limited | Mainline | 161.90 (-20.25%) |
| JG Chemicals Limited | Mainline | 184.65 (-16.45%) |
| ACME Solar Holdings Limited | Mainline | 253.50 (-12.28%) |
| EPACK Durable Limited | Mainline | 207.70 (-9.7%) |
| R K SWAMY Limited | Mainline | 263.25 (-8.59%) |
| DCG Cables & Wires Limited | SME | 91.55 (-8.45%) |
| Sona Machinery Limited | SME | 131.25 (-8.22%) |
| Usha Financial Services Limited | SME | 155.85 (-7.23%) |
| Hyundai Motor India Limited | Mainline | 1,820.40 (-7.12%) |
| Phoenix Overseas Limited | SME | 60.80 (-5%) |
| Sameera Agro And Infra Limited | SME | 171.00 (-5%) |
| Falcon Technoprojects India Limited | SME | 88.20 (-4.13%) |
| Ceigall India Limited | Mainline | 386.05 (-3.73%) |
| Baweja Studios Limited | SME | 173.85 (-3.42%) |
| Mandeep Auto Industries Limited | SME | 65.35 (-2.46%) |
| Krystal Integrated Services Limited | Mainline | 712.30 (-0.38%) |
| Premium Plast Limited | SME | 48.90 (-0.2%) |
Reasons Behind IPO Failures
The main reasons for IPO failures include overvaluation, where the offering price exceeds what investors perceive as fair, deterring participation and subscription.
Weak financial health or lack of a clear business growth story also contributes to IPO failures. Investors hesitate to back companies that lack stability or long-term potential, affecting subscription levels.
Market sentiment heavily influences IPO outcomes. Negative investor sentiment due to geopolitical, economic, or sector-specific issues can cause even fundamentally sound IPOs to underperform or fail.
Impact of Failed IPO In India
Failed IPOs in India can erode investor confidence, making them cautious about participating in future public offerings and impacting the overall capital market ecosystem.
Such failures can discourage companies from raising funds through public markets, affecting their expansion plans and slowing down sectoral or economic growth opportunities.
Additionally, failed IPOs often lead to financial losses for underwriting banks and other stakeholders, causing ripple effects across the investment banking and retail trading industries.
Top IPOs that failed in 2024- Quick Summary
- In 2024, IPOs like M.V.K. Agro Food (-30.87%), Kalana Ispat (-28.18%), BikeWo GreenTech (-23.79%), and Deepak Builders (-20.25%) underperformed significantly, reflecting challenges in SME and Mainline markets with steep listing-day price drops.
- IPO failures occur when a company’s initial public offering does not meet expected subscription levels or performs poorly post-listing, often due to overvaluation, weak financials, or unfavorable market conditions.
- Notable failed IPOs in India include Paytm’s 2021 listing, which saw a significant drop in share value post-IPO, and Hyundai Motor India’s 2024 IPO, which debuted at a discount.
- Common reasons for IPO failures include overpricing, weak company fundamentals, poor market timing, and lack of investor confidence, leading to under-subscription or negative post-listing performance.
- Failed IPOs in India can erode investor confidence, deter future public offerings, and result in financial losses for stakeholders, affecting the overall capital market ecosystem.
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List Of Failed IPOs In India – FAQs
An IPO (Initial Public Offering) is when a private company offers its shares to the public for the first time, raising capital and becoming a publicly traded entity on the stock exchange.
Notable underperformers in 2024 include M.V.K. Agro Food (-30.87%), Kalana Ispat (-28.18%), BikeWo GreenTech (-23.79%), and Deepak Builders (-20.25%), reflecting significant challenges in market pricing and investor sentiment.
The key reasons for IPO failures in 2024 included overvaluation, weak market conditions, unfavorable macroeconomic factors, and lack of investor confidence in the issuing company’s financial health or growth potential.
The SME sector experienced the most IPO failures in 2024, with companies from agriculture, steel, and green technology struggling to meet investor expectations, leading to under-subscription and negative listing performances.
Investors cannot directly recover losses from failed IPOs, but they can mitigate future risks by diversifying portfolios, conducting thorough due diligence, and carefully evaluating a company’s fundamentals before investing.
Yes, a failed IPO company can attempt another public offering in the future by addressing key concerns, improving financial health, and reassessing market conditions for better investor confidence and market timing.
To avoid IPO failures, companies should ensure fair pricing, improve financial transparency, time the IPO during favorable market conditions, and effectively communicate their growth story and fundamentals to potential investors.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
