Who's afraid of IPO market? Policymakers should only worry about disclosure

Despite weak listing gains and rising anger among retail investors, long-term data shows the IPO pipeline is healthier than ever, and heavy-handed regulation would do more harm than good

There is anger in the air regarding the Indian IPO (initial public offering) market. The recent data shows that listing gains have declined. A significant proportion of companies listed in 2025 are trading below their issue price. Retail investors who flocked to these offerings in search of quick returns are disappointed. Commentators are using words like “trap”, “loot”, and “pump and dump”. There are calls for the Securities and Exchange Board of India (Sebi), the regulator, to step in and check valuations.

 

This creates a dangerous moment for policy. When the noise level rises, the