Three of four IPOs flop on debut as stocks close below issue price

Three of four firms that debuted on Tuesday closed below issue price despite robust subscription, raising concerns for upcoming mega IPOs such as Tata Capital and WeWork India

Three of the four companies that debuted on the bourses on Tuesday saw their stock prices falling below the issue price. Of the 44 mainboard listings in 2025 so far, 21 have closed below their respective issue prices on debut.

 

According to market experts, the trend does not bode well for the primary market, where mega initial public offerings (IPOs) like Tata Capital, WeWork India, and LG Electronics are slated to open soon.

 

Jaro Institute of Technology Management and Research, Seshaasai Technologies, and Solarworld Energy Solutions all registered listing-day losses, even as their IPOs saw robust demand. Anand Rathi Share and Stock Brokers was the lone exception, ending with gains of 7.6 per cent.

 

Jaro Institute’s ₹890 crore IPO was subscribed 23 times, yet its stock ended at ₹745, down 16.3 per cent from its issue price. This was the second-worst debut this year after Arisinfra Solutions, which had plunged 21 per cent on its first day.

 

Seshaasai Technologies also disappointed despite heavy investor interest, with its ₹813 crore IPO getting subscribed around 70 times. The stock finished at ₹412, 2.7 per cent, below its ₹423 issue price.

 

Solarworld Energy Solutions also ended in the red, closing at ₹323, a drop of 8 per cent versus its issue price of ₹351.

 

Anand Rathi Share and Stock Brokers provided some respite, with its ₹746 crore offer being subscribed 22 times. The stock got listed at ₹432 (up 4.3 per cent) and ended the session even higher at ₹446 — an 8 per cent premium over the issue price.