Weak IPO listings by Studds and Orkla cast a shadow on market euphoria

Consecutive weak listings by Studds Accessories and Orkla India have dimmed India's IPO frenzy, even as analysts flag valuation concerns and a cooling in grey market sentiment

Back-to-back weak listings have taken some shine off India’s ongoing IPO boom. On Friday, shares of helmet maker Studds Accessories ended 5 percent below their issue price, a day after food company Orkla India closed 3 per cent lower on debut. The subdued market response came despite strong investor demand during their maiden offerings — Studds’ IPO was subscribed over 70 times and Orkla’s over 50 times. 

Grey market sentiment also weakened. The premium for Lenskart Solutions slipped sharply, from above 20 per cent to below 2 per cent, while that for Groww, which closed its issue on Friday, and Pine Labs, which opened the same day, hovered in low single digits. 

Brokerage Ambit on Friday initiated coverage on Lenskart with a ‘sell’ rating and a target price of ₹337, 16 per cent below its issue price of ₹402. It said the company’s faster growth merits some valuation premium but argued that its higher valuation compared with Trent and Nykaa is difficult to justify given its lower returns on capital. 

The lukewarm debuts come even as India’s IPO market is poised to surpass last year’s record mop-up of ₹1.59 trillion. So far in 2025, 84 mainboard IPOs worth ₹1.51 trillion have hit the market.