As of March 17, 2025, a worrying trend has emerged in the Indian stock market, where 55 newly listed IPOs and SME stocks have dropped over 25% below their issue prices. This sharp decline has sparked concerns about the quality of these listings, investor confidence, and their long-term viability.
Among the worst-hit stocks, Lemosaic India has recorded the steepest fall of 77.4%, followed closely by BikeWo Green (-71.8%) and Phoenix Overseas (-67.7%), indicating significant selling pressure. Other major losers include Usha Financial (-63.4%), Gajandand International (-58.1%), Paramount Dyes (-56.2%), and Carraro India (-56.3%), all trading well below their IPO prices.
Several infrastructure and industrial sector companies have also suffered heavy losses, with Deepak Builders (-34.4%), Shreenath Paper (-41.1%), and Ken Enterprises (-56.0%) struggling to maintain investor confidence. Similarly, Delta Autocorp (-43.5%), Northern Arc (-35.6%), and Western Carriers (-53.9%) have witnessed sharp declines.
The healthcare sector has not been immune to this trend, with Suraksha Diagnostic (-35.5%), Amwill Health (-33.3%), and Malpani Pipes (-38.5%) facing significant markdowns. NewMalayalam (-66.1%) and Citichem India (-62.1%) have also suffered massive declines.
In the financial services segment, Popular Foundation (-25.7%) and Indo Farm Equipments (-25.5%) have struggled, alongside David Sons (-60.0%) and IGIL (-27.1%). Meanwhile, real estate and logistics companies Landmarks Immigration (-31.3%) and GB Logistics (-61.6%) are also feeling the heat.
Additionally, SPP Polymers (-64.3%), Tolins Tyres (-49.5%), Aditya Ultra (-54.8%), and Excellent Wires (-44.4%) have recorded sharp falls, highlighting weak investor sentiment in manufacturing and allied sectors.
Other stocks that have suffered notable declines include:
- Acme Solar (-31.8%)
- Gidavari Bio (-57.1%)
- Premium Plast (-26.5%)
- Khayti Global (-42.9%)
- Subam Paper (-40.5%)
- Divyadhan Recycling (-39.8%)
- Forge Auto (-37.1%)
- Uniflex Colours (-36.0%)
- WOL 3D (-32.8%)
- SD Retail (-29.4%)
- Kalana Ispat (-27.0%)
- Deccan Transcon (-53.8%)
- Jungle Camp (-33.4%)
- Supreme Facility (-60.6%)
- Abha Power (-61.4%)
55 IPOs and SMEs listed in the past six months that are trading over 25% below their issue prices, raising concerns about their quality and market confidence in their fundamentals.
Note for info only.
17-03-2025 pic.twitter.com/XMCCC6fGGb— Pankaj Parekh (@DhanValue) March 18, 2025
The significant underperformance of these IPOs and SMEs has raised alarms among investors regarding their financial health, business models, and long-term viability. Market experts believe that investors should exercise caution while investing in newly listed firms and conduct thorough due diligence before entering such stocks.
Disclaimer: Stock market investments are subject to risks. Investors are advised to conduct their own research before making any investment decisions.
