🔍 NSE IPO Listings in 2025 (Mainboard & SME)

As of July 2025, the Indian stock market has witnessed a dynamic IPO landscape. A total of 70+ IPOs have been listed on the National Stock Exchange (NSE), including both Mainboard and SME (Small and Medium Enterprises) IPOs. The performance of these IPOs has varied, with some delivering outstanding listing gains, while others have faced lukewarm investor interest.

Below is a comprehensive table summarizing key IPO listings on NSE in 2025:

Note: This table includes selective popular IPOs up to July 15, 2025. Full list continues in the next section.

The trend shows that while Mainboard IPOs are gaining moderate interest from institutional investors, the SME IPO space is experiencing unprecedented demand from retail and HNI investors — thanks to lower issue sizes and high returns on listing.

📈 Extended List of Noteworthy NSE IPOs in 2025

Below is the continued list of other prominent NSE IPOs in 2025. These IPOs have contributed significantly to market liquidity and retail investor participation:

With over Rs 40,000 crore raised through IPOs in the first half of 2025, it’s clear that the Indian equity market remains an attractive destination for capital raising. Some IPOs have rewarded investors with nearly 2x returns within just weeks of listing.

Looking ahead, major IPOs from sectors like fintech, EV, clean energy, and logistics are in the pipeline. The appetite for IPOs is expected to remain strong throughout Q3 and Q4 of 2025.

🔍 IPO Trends in 2025: Sector-Wise and Investor Insights

With over 50 IPOs hitting the NSE (including SME platforms) in the first half of 2025, several distinct trends have emerged. Let’s break them down sector-wise and by investor category:

📊 Sector-Wise IPO Breakdown

Companies from diverse sectors have tapped into the public markets. Below is a summary of sector-wise IPO participation:

Key Insight: Financial services and tech-based companies dominated IPO fundraising, while SME-based companies saw record-breaking oversubscription.

👥 Investor Category Trends

IPO participation across different investor classes in 2025 showed a remarkable shift:

• Retail Investors: Retail subscriptions crossed 15x average, thanks to improved digital IPO access via UPI and ASBA.
• Qualified Institutional Buyers (QIBs): Participated aggressively in well-rated IPOs like Juniper Hotels and Trust Fintech.
• High Net-Worth Individuals (HNIs): Benefited from leveraged applications, especially in IPOs like Konstelec Engineers and EPACK Durable.

This trend reflects growing confidence in equity participation and the maturing of India’s capital market ecosystem.

💹 Top 10 SME IPOs with Over 100% Listing Gains in 2025

India’s SME (Small and Medium Enterprises) IPO segment has witnessed explosive growth in 2025. These offerings not only gave smaller companies access to capital but also delivered extraordinary returns to investors. Below are the top 10 SME IPOs that delivered over 100% listing gains on debut:

Key Takeaway: SME IPOs in 2025 have created significant wealth for investors, often outperforming mainboard listings. However, investors must exercise due diligence before investing, as high volatility and liquidity risks remain.

Most of these companies offered robust fundamentals, clean corporate governance, and a clear growth roadmap — factors that contributed to strong investor confidence and massive oversubscription.

5. Anchor Investors Strategy: Unlocking Institutional Confidence

Anchor investors play a crucial role in boosting market confidence during IPOs. These are institutional investors—mutual funds, insurance companies, pension funds, and sovereign wealth funds—who are allotted shares a day before the IPO opens to the public. Their participation often sets the tone for retail and HNI investors.

What are Anchor Investors?

Anchor investors are Qualified Institutional Buyers (QIBs) who are allotted shares on a discretionary basis at a fixed price one day before the IPO opens for subscription. They must hold the shares for at least 30 days post-listing, ensuring market stability in the initial trading window.

Benefits of Anchor Investors in IPOs

• Market Sentiment Booster: Their participation signals strong institutional confidence.
• Improved Subscription: Retail and HNI investors follow anchor allocations to gauge IPO strength.
• Better Pricing: Their valuations help underwriters decide on a reasonable price band.

2025 Examples of Anchor Investors in Action

How Retail Investors Can Learn from Anchor Strategy

• Track anchor investor allocation in the RHP/DRHP filings—check names and investment size.
• High anchor interest from blue-chip funds signals quality—consider applying with more confidence.
• Avoid herd mentality: anchor interest is not a guarantee of listing gains. Combine it with your own research.

In summary, anchor investors act as market makers, injecting institutional credibility. Retail investors should watch their actions closely—but not blindly—before investing in IPOs.

6. Top Upcoming IPOs in 2025 – Pipeline Analysis and Key Details

The IPO pipeline in 2025 is promising, with several high-profile companies expected to debut on Indian stock exchanges. From tech unicorns to infrastructure giants, investors are anticipating a mix of growth and value-driven IPOs that can reshape portfolios and generate strong listing gains.

Noteworthy IPOs Expected in 2025

Factors to Watch Before Applying for These IPOs

• Financial Performance: Check quarterly results, especially profitability and revenue trends.
• Valuation: Compare with listed peers like Zomato, Paytm, PolicyBazaar, etc.
• Anchor Interest: A strong lineup of institutional investors can build confidence.
• DRHP Insights: Review use of proceeds, risks, litigation disclosures, and promoter background.

SEBI & Market Trends in 2025 Affecting IPO Landscape

With SEBI tightening norms around disclosures, monitoring profitability metrics, and streamlining listing rules, IPO aspirants must now present clearer financials and stronger governance standards. This regulatory push is expected to improve the overall quality of companies coming to the market.

IPO Pipeline Momentum

India’s equity capital markets are expected to witness over ₹1.5 lakh crore worth of IPOs in 2025, with technology, financial services, healthcare, and renewables leading the chart. The increasing retail participation, stable interest rates, and positive macroeconomic outlook may fuel demand for quality IPOs.

Investors are advised to track RHPs, SEBI approvals, and grey market premiums (GMP) before finalizing their investment decisions in upcoming IPOs.

7. Grey Market Premiums (GMP) – Real Indicator or Illusion?

Grey Market Premiums (GMPs) are unofficial trading indicators that reflect the expected listing gain or investor sentiment about an upcoming IPO. While they’re not regulated by SEBI, GMPs are widely followed by investors, traders, and analysts alike.

What is Grey Market Premium (GMP)?

GMP is the price at which IPO shares are bought or sold in the unofficial market before they are officially listed on stock exchanges. It serves as a proxy for anticipated listing performance based on demand-supply dynamics and investor sentiment.

How is GMP Calculated?

GMP is simply:

GMP = Grey Market Price – IPO Issue Price

For example, if the IPO price is ₹100 and the grey market quote is ₹130, then the GMP is ₹30.

GMP: Key Features

• Unofficial & Unregulated: GMP trades happen outside of stock exchanges via brokers and operators.
• Driven by Sentiment: Reflects investor hype, media coverage, and expected demand.
• May Be Volatile: GMPs can swing wildly before listing, based on grey market demand.
• Short-Term Indicator: Mostly used to guess listing gains, not long-term performance.

GMP vs Actual Listing Price: Past Analysis (2023–2024)

Can GMP Be Trusted?

While GMP gives a sneak peek into market demand, relying solely on it is risky. Here’s why:

• No SEBI Regulation: GMP data is based on informal quotes from dealers and is not transparent.
• Can Be Manipulated: In some IPOs, operators inflate GMP to lure retail investors.
• Liquidity Trap: You may get trapped in a stock that lists well but crashes later due to weak fundamentals.
• Short-Term Focus: GMP only reflects listing-day expectations, not post-listing performance.

Should You Track GMP?

Yes, but with caution. Use GMPs as one of several data points. Combine it with:

• RHP and DRHP analysis
• Peer comparison and sector trends
• Subscription figures (especially QIB & NII)
• Company’s financials and valuations

Conclusion: GMP – Useful but Not Foolproof

GMP can give an early hint about listing gains, but investors should not base their investment decisions purely on it. Treat it as a speculative number that reflects sentiment, not fundamentals.

8. Risks & Caution for IPO Investors in 2025

While IPOs present exciting investment opportunities, especially with India’s bullish stock market in 2025, investors must also be aware of the risks involved. Not every IPO results in listing gains or long-term value. Let’s explore the major risks and points of caution to help investors make informed decisions.

Key Risks Associated with IPO Investments

• Listing Day Volatility: Many IPOs witness high volatility on listing day. Prices can swing wildly depending on demand and market sentiment.
• Overvaluation Risk: Some companies may price their IPOs aggressively, leaving little room for post-listing upside.
• Low Promoter Holding: If promoters dilute too much stake, it may show lack of long-term commitment to the company.
• Weak Fundamentals: IPO hype can overshadow fundamental weaknesses such as low profitability, high debt, or unclear business models.
• Grey Market Premium (GMP) Misleading: GMP is unofficial and speculative. Relying solely on GMP for IPO investment decisions can lead to disappointment.

Red Flags Investors Should Watch For

• Frequent Equity Dilution: Check if the company has a history of issuing new equity frequently, which could dilute future earnings per share.
• Objects of the Issue: Be cautious if most IPO proceeds are being used for loan repayment instead of business expansion.
• Peer Comparison: Compare valuation metrics like P/E ratio, ROE, and revenue growth with listed peers before investing.
• Exit by PE Investors: If private equity investors are exiting completely through the IPO, it may be a signal of concern.

Examples of IPOs with Cautionary Lessons

Best Practices for IPO Risk Management

• Read the RHP Thoroughly: Focus on risk factors, use of funds, promoter background, and business model clarity.
• Diversify: Don’t invest all capital in IPOs. Allocate a small portion of portfolio for new listings.
• Avoid Hype: Stay grounded. Just because an IPO is popular doesn’t mean it’s profitable.
• Long-Term Thinking: Consider the IPO stock’s potential over the next 3–5 years, not just the listing day.

IPOs in 2025 offer exciting opportunities—but also come with considerable risks. A balanced approach, thorough due diligence, and discipline in investment can help investors avoid costly mistakes and build wealth over time.

9. IPO Taxation Rules in 2025 – What You Must Know

IPO investments in India are subject to taxation based on capital gains rules under the Income Tax Act, 1961. Whether you gain from listing day profits or hold the shares long term, it’s important to understand how IPO earnings are taxed in FY 2024-25 (AY 2025-26).

Tax Treatment Based on Holding Period

IPO Tax Scenarios Explained

• Scenario 1 – Sold on Listing Day: If you sell your IPO allotment on the listing day and make a profit, it will be considered a Short-Term Capital Gain (STCG) and taxed at 15%.
• Scenario 2 – Held for Over 12 Months: If you hold the IPO shares beyond 12 months and sell them later, the gain is classified as Long-Term Capital Gain (LTCG). Only gains above ₹1 lakh per year are taxed at 10%.
• Scenario 3 – No Allotment: If you applied but didn’t receive an allotment, and your amount was refunded—there is no tax liability.

Important Tax Considerations

• Brokerage & STT: Securities Transaction Tax (STT) is already paid on IPO share sale, which allows the benefit of Section 111A & 112A.
• No Indexation for Equity IPO: Indexation benefits are not applicable on listed equity shares.
• Losses from IPO Sale: Capital losses can be adjusted against gains as per tax rules—STCL against STCG or LTCG, and LTCL only against LTCG.
• Dividend from IPO Companies: If the company declares dividends after listing, it will be added to your total income and taxed as per your income slab.

How to Report IPO Gains in ITR (AY 2025-26)

1. Choose the Correct ITR Form: ITR-2 is applicable if you have capital gains income and don’t have business income.
2. Use AIS and 26AS: Cross-verify IPO profits and share sales from Annual Information Statement and Form 26AS.
3. Fill Schedule CG: Report short-term and long-term capital gains in their respective schedules in your return.

Proper IPO taxation knowledge can help you plan better and avoid notices from the Income Tax Department. Always declare gains accurately and maintain contract notes and bank statements for proof.

10. IPO Grey Market Premium (GMP) – Should You Trust It in 2025?

The IPO Grey Market Premium (GMP) is an unofficial indicator of how a stock might perform on listing. While it is widely followed by investors and traders, GMP is not published by any stock exchange or SEBI, and it is not regulated. In 2025, relying on GMP comes with both advantages and significant risks.

What is GMP?

GMP refers to the premium at which IPO shares are being traded in the unofficial market before the listing date. For example, if the issue price is ₹100 and the GMP is ₹50, it indicates that the expected listing price is ₹150.

Key Sources for GMP Data

• Market rumors from dealers in Ahmedabad, Mumbai, or Jaipur
• Financial news websites and IPO portals (unofficial)
• Telegram groups or stock market forums (high risk of manipulation)

Pros of Using GMP

• Quick Sentiment Indicator: GMP provides a rough idea of market demand.
• Helps in Decision-Making: A consistently rising GMP may suggest strong retail and HNI interest.
• Signals Listing Gain Potential: High GMP may point to profitable listing-day trades.

Cons and Risks of Relying on GMP

• Highly Unreliable: GMP is often speculative and manipulated by operators.
• No Legal Standing: Since GMP trades are informal, there’s no legal recourse for loss or fraud.
• Not Always Accurate: Many IPOs with high GMP have listed below issue price in the past.
• Risk of Pump-and-Dump: GMP can be used to mislead retail investors in overhyped IPOs.

2025 Trend: GMPs Losing Significance?

In 2025, with tighter SEBI surveillance and more informed investors, many experts believe the grey market’s influence is reducing. SEBI’s scrutiny on unregulated trading practices has discouraged illegal grey market operators, and more investors are analyzing fundamentals rather than GMP alone.

Expert Advice

• Never invest in an IPO based solely on GMP.
• Use GMP as just one of the many indicators—along with fundamentals, anchor investor response, and sector outlook.
• Do not enter into grey market deals for pre-allotment share selling—it’s illegal and risky.

Real-Life Example

In 2024, Company XYZ had a GMP of ₹120 before listing. Despite the hype, the stock listed at ₹98, below the issue price of ₹100. Retail investors who relied only on GMP suffered losses. This reinforces why caution is necessary.

Conclusion: GMP may provide early insights, but it should never replace solid research. In 2025, as IPO markets evolve and become more data-driven, investors should treat GMP as an informal signal—not a guarantee.

11. Dos and Don’ts for IPO Investors in India (2025 Edition)

With the Indian IPO market witnessing a surge in activity and investor participation in 2025, it’s crucial to follow best practices to ensure a safer and more informed investing experience. Here’s a list of key dos and don’ts for every IPO investor in India this year.

✅ Dos

• ✔ Do Your Research: Read the Draft Red Herring Prospectus (DRHP), financials, and business models of the IPO-bound company.
• ✔ Check Valuation: Compare the IPO valuation (P/E, P/BV, EV/EBITDA) with listed peers in the same industry.
• ✔ Apply Through UPI or ASBA: Always use official channels to apply—either via UPI (Unified Payments Interface) or ASBA (Application Supported by Blocked Amount).
• ✔ Monitor Anchor Investor Activity: Anchor investor participation often reflects institutional confidence in the IPO.
• ✔ Diversify: Spread investments across multiple IPOs and sectors to reduce overall risk.
• ✔ Follow SEBI Updates: Stay updated with any notifications by SEBI regarding IPO timelines or rule changes.

❌ Don’ts

• ✘ Don’t Invest Blindly Based on Hype: Avoid being swayed by social media or WhatsApp group messages.
• ✘ Don’t Trust GMP Blindly: Grey Market Premium is not a regulated metric and can be manipulated.
• ✘ Don’t Apply from Multiple PANs: Submitting multiple IPO applications using the same name or linked PANs may lead to rejection or SEBI penalties.
• ✘ Don’t Ignore Lock-in Periods: Especially if applying under HNI or anchor category, check if there’s a lock-in on shares.
• ✘ Don’t Time the Market for Listing Gains: IPOs are not always listing-day profit opportunities. Focus on long-term potential.
• ✘ Don’t Sell Under Pressure: Don’t panic sell if the stock lists below issue price—evaluate fundamentals before exiting.

Bonus Tips for 2025

• Track Sectoral Trends: IPOs in sectors like Green Energy, Fintech, and AI-based SaaS companies are showing better post-listing performance in 2025.
• Use Broker Research Reports: Reputed brokers like ICICI Direct, Zerodha Varsity, HDFC Securities, etc., publish helpful IPO notes.
• Don’t Skip Smallcap IPOs: Some small or SME IPOs have outperformed large IPOs in 2025 due to niche business models.

Conclusion: IPO investing in India in 2025 requires a balance of due diligence, caution, and strategy. Follow these dos and don’ts to make informed decisions and reduce the chances of losses in this fast-evolving market.

12. Top 10 IPOs of 2025 (So Far) – Performance and Analysis

As of July 2025, the Indian primary market has already seen several blockbuster IPOs across various sectors. The table below highlights the top 10 IPOs of 2025 based on investor interest, subscription numbers, listing gains, and post-listing performance.

Note: Returns are calculated based on NSE closing prices as of July 15, 2025. Past performance does not guarantee future returns.

Key Observations

• Green Energy and AI tech IPOs led the pack in terms of both listing gains and sustained returns.
• Mid-sized IPOs performed better on a return-on-investment basis compared to large-cap ones.
• Retail participation remained strong due to robust grey market buzz and anchor investor confidence.
• SEBI’s revised norms on SME IPO disclosures brought more transparency, attracting new-age investors to smaller IPOs.

Conclusion: The first half of 2025 proved highly lucrative for IPO investors who did their due diligence and stayed updated with sectoral trends. The upcoming IPO pipeline looks promising, with many high-growth startups and PSU disinvestments on the horizon.

13. IPO Risks in 2025: What Investors Must Watch For

Despite the buzz around IPOs, investing in newly listed companies comes with its share of risks. The 2025 IPO landscape, while promising, has also shown how quickly things can turn for retail investors when due diligence is ignored.

Top Risks in IPO Investing

• Overvaluation: Several IPOs in 2025 are being priced aggressively based on future growth rather than current fundamentals.
• Listing Day Volatility: Heavy speculation can lead to sharp price movements on listing day, making short-term investing risky.
• Poor Post-Listing Performance: Many IPOs in recent years have seen price erosion months after listing due to weak earnings or poor market sentiment.
• Lack of Historical Data: Unlike listed companies, IPO candidates often have limited public disclosures and financial history.
• Changing Regulatory Environment: SEBI’s tightening of norms around profitability and promoter lock-in periods could impact company operations and share prices post-IPO.

Examples of IPOs Facing Headwinds in 2025

How to Minimize IPO Risks

• Read the Red Herring Prospectus (RHP) thoroughly before applying. Understand the company’s revenue model, profitability, and risk disclosures.
• Don’t invest in hype. Evaluate IPOs with the same rigor as any long-term stock investment.
• Check promoter track record, sector health, and peer comparison.
• Avoid leveraging capital for IPOs. Use spare capital and invest within risk tolerance.
• Wait and watch post-listing if unsure. Good companies provide opportunities even after IPO frenzy settles.

While IPOs can generate quick profits, especially in bull markets, 2025 has shown that a cautious and informed approach is essential. Risk management is as important as opportunity identification.

14. IPO Investment vs. Mutual Funds: Which is Better in 2025?

In 2025, with several IPOs flooding the market and mutual funds showing consistent returns, investors often face a dilemma — where should they allocate their money? Let’s analyze the key differences to help you make an informed decision.

Comparison Table: IPOs vs. Mutual Funds

When to Choose IPOs

• If you are a risk-tolerant investor seeking short-term gains.
• If the company has strong fundamentals and peer comparison is favorable.
• If you have already diversified your portfolio and want to explore new opportunities.

When to Choose Mutual Funds

• If you are a beginner or prefer long-term wealth creation.
• If you want consistent returns with professional fund management.
• If your financial goals align with SIPs, retirement planning, or education funds.

Expert Insight

In 2025, AMFI data shows equity mutual funds delivered a 14% average annual return over the past 3 years, while IPOs, though lucrative, had a higher variance in outcomes. Therefore, mutual funds may suit conservative investors better, while IPOs could work for aggressive investors with a strong risk appetite and understanding of stock markets.

Ultimately, combining both IPOs and mutual funds based on your asset allocation strategy can offer balanced growth and risk mitigation.

15. How to Apply for an IPO in 2025: Step-by-Step Guide

Applying for an IPO in 2025 has become easier with the availability of multiple online and offline methods. Here’s a step-by-step guide to help you apply seamlessly through various platforms:

Step 1: Ensure You Have a Demat Account

Before applying for an IPO, make sure you have a valid Demat and Trading account. You can open one with any SEBI-registered broker like Zerodha, Groww, Upstox, ICICI Direct, etc.

Step 2: Check IPO Details on the Stock Exchange Website

Visit NSE or BSE for IPO announcements, dates, price band, lot size, and company information.

Step 3: Choose Your Application Platform

• Online via Broker Platform: Use your broker’s IPO section to apply easily. Most platforms offer UPI-based application.
• Bank ASBA (Application Supported by Blocked Amount): Log in to your net banking account → go to ‘IPO/ASBA’ section → select IPO → enter details → apply.
• UPI-Based Application: Enter your UPI ID during the IPO application process; you’ll get a request in your UPI app to block the amount.

Step 4: Fill IPO Application Details

Fill in the required fields such as:

• Investor Type (Retail, HNI, etc.)
• Number of lots/bids
• Bid price (or use cutoff price)
• UPI ID (for UPI-based applications)

Step 5: Approve Mandate and Wait for Allotment

After applying, approve the mandate on your UPI app (like PhonePe, Paytm, BHIM, etc.). The amount will be blocked in your account until allotment.

Step 6: Check Allotment Status

Once the IPO closes, visit the registrar’s website (like Link Intime or KFinTech) to check your IPO allotment status using your PAN or application number.

Step 7: Refund or Shares Credited

• If allotted: Shares will be credited to your Demat account on the allotment date.
• If not allotted: Blocked funds will be unblocked in 2-3 working days.

Tips:

• Always apply at the cutoff price for better chances of allotment.
• Avoid last-day rush as UPI mandate approvals may fail due to traffic.
• You can apply through multiple accounts (not PANs) to improve allotment chances.

Applying for an IPO in 2025 is just a few clicks away. However, ensure that the IPO is worth applying to by evaluating the company fundamentals before investing your hard-earned money.

16. Grey Market Premium (GMP) and IPO: Should You Trust It?

Grey Market Premium (GMP) refers to the premium amount at which shares of an IPO are traded in the unofficial market before their official listing. In 2025, GMP continues to be a popular indicator for IPO demand — but is it truly reliable?

What is Grey Market?

The grey market is an unofficial and unregulated market where IPO shares are traded before they are officially listed on stock exchanges. Transactions in this market are based on trust and are typically handled by brokers or small-time dealers in cities like Ahmedabad and Mumbai.

What is Grey Market Premium (GMP)?

GMP = Grey Market Price – IPO Issue Price

For example, if an IPO is issued at ₹100 and the GMP is ₹50, it means the stock is expected to list around ₹150.

Types of Grey Market Activities

• GMP Trading: Investors agree to sell shares at a pre-decided premium even before allotment or listing.
• Kostak Rates: Fixed amount one gets for selling their IPO application. It protects the buyer in case of non-allotment.
• Subject to Sauda: Price for selling allotted IPO shares only if they are allotted.

Pros of Considering GMP

• Helps gauge market sentiment and demand.
• Provides a rough idea of possible listing gain.
• Used by HNIs and retail investors to strategize IPO investment.

Risks and Limitations of GMP

• No official regulation: It’s not monitored by SEBI or stock exchanges.
• Speculative in nature: Can be manipulated by vested interests.
• Not always accurate: Some IPOs with high GMP have failed on listing day, and vice versa.
• No legal protection: If you lose money in grey market dealings, you can’t raise complaints legally.

Should You Trust GMP in 2025?

Use GMP only as a supporting tool — not the deciding factor — when applying for IPOs. Always analyze:

• The company’s financials
• Valuations and peer comparison
• Risk factors in the red herring prospectus (RHP)
• Business model and long-term growth prospects

Pro Tip:

Many IPOs in the past with low or negative GMPs have delivered solid long-term returns. So avoid blindly chasing GMP-based IPOs if you are a long-term investor.

Conclusion: Grey Market Premium can act as a mirror of market sentiment but should not replace sound due diligence and rational investing.

17. How to Choose the Right IPO in 2025?

With a surge in IPOs in 2025, selecting the right one can feel overwhelming. Not every IPO guarantees profit. To make a smart investment decision, you must go beyond the hype and evaluate the fundamentals. Here’s a practical guide to choosing the right IPO in 2025.

✔️ 1. Read the Red Herring Prospectus (RHP)

The RHP is the most authentic document released by the company before an IPO. It contains crucial information like:

• Business model and revenue streams
• Risk factors
• Use of IPO proceeds
• Litigation and legal issues
• Financial performance and promoters’ background

Download it from SEBI’s official website or the respective stock exchange portals.

✔️ 2. Evaluate the Company’s Financials

Look for consistent revenue growth, profit margins, EBITDA, Return on Net Worth (RoNW), and Debt-to-Equity ratio. Avoid companies with high debt or weak cash flows unless there’s a strong growth story backing it.

✔️ 3. Compare Valuations with Peers

Check the Price-to-Earnings (P/E), Price-to-Book (P/B), and EV/EBITDA multiples with listed industry peers. A higher valuation is acceptable only if the company has unique advantages or dominant market share.

✔️ 4. Look at Promoter’s Reputation and Stake

Good corporate governance and experienced promoters indicate long-term trust. Also, check if promoters are diluting too much stake — it may hint they’re exiting at peak valuation.

✔️ 5. Use of IPO Funds

If a significant portion of the IPO is for Offer for Sale (OFS), it means money is going to existing shareholders, not the company. Prefer IPOs where funds are used for expansion, debt reduction, or R&D.

✔️ 6. Subscription Data & Anchor Investors

Monitor QIB (Qualified Institutional Buyer) and HNI subscription levels during IPO. Strong institutional interest often reflects confidence in the company.

Also look at the names of anchor investors — reputed mutual funds or FIIs add credibility.

✔️ 7. Read Analyst Reports & Independent Reviews

Several research agencies and brokerages publish IPO reviews with ratings. But be cautious — cross-check with at least 2–3 sources for a balanced view.

✔️ 8. Your Investment Horizon

• Short-term investors: Focus on GMP, listing expectations, and market trend.
• Long-term investors: Focus on fundamentals, scalability, and competitive edge.

✔️ 9. Avoid IPO Frenzy

Don’t apply just because everyone else is applying. Avoid herd mentality. There have been cases where hyped IPOs like Paytm (in 2021) listed below issue price and struggled for years.

✔️ 10. Be Realistic

IPO is not a shortcut to riches. Even if you get an allotment, there’s no guarantee of profit. Assess your own risk appetite and investment goals.

Final Word: The right IPO choice in 2025 combines analysis, patience, and discipline. Stick to facts, not FOMO (Fear of Missing Out).

18. What is IPO Grey Market Premium (GMP)? Should You Rely on It in 2025?

IPO Grey Market Premium (GMP) is the unofficial premium at which an IPO share is trading before it gets listed on the stock exchange. It’s a key indicator used by retail investors to gauge the expected listing gain. But is it trustworthy? Let’s understand in depth.

✔️ What is Grey Market?

The grey market operates unofficially, outside the purview of SEBI or any regulatory authority. Here, investors trade IPO applications or shares even before allotment or listing.

There are two main grey market terms:

• GMP (Grey Market Premium): Indicates the price above the issue price.
• Kostak Rate: The price at which an entire IPO application is being sold.

✔️ Example of GMP

If the IPO price of XYZ Ltd is ₹100 and GMP is ₹50, then the expected listing price is ₹150.

✔️ How is GMP Decided?

It depends on several factors:

• Subscription levels (especially from QIBs and HNIs)
• Company fundamentals
• Market sentiment
• Anchor investor response

✔️ Is GMP Reliable?

GMP is not always a reliable indicator. While it can give an idea of demand, it is purely speculative and can change rapidly depending on market trends. It is influenced by traders’ sentiments, not actual fundamentals.

✔️ Risks of Relying on GMP

• Market Volatility: GMP can drop drastically if the overall market turns negative.
• False Hype: Some market players create artificial demand to inflate GMP.
• No Regulatory Oversight: Transactions in the grey market are unofficial and carry risk.
• No Guarantee of Profit: High GMP doesn’t assure listing gain.

✔️ Role of GMP in IPO Decision

While GMP can help gauge listing sentiment, your decision should primarily depend on:

• Company fundamentals
• Valuation
• Business model
• Long-term potential

✔️ Updated GMP Trends in 2025

As of July 2025, several IPOs have shown varying GMPs — some over ₹100, others close to zero. In a few cases, the listing price was much lower than the grey market prediction.

Conclusion: GMP may offer early signals, but in 2025’s volatile market, relying solely on it is risky. Use it as just one of many tools in IPO decision-making — not the only one.

19. Grey Market Premium (GMP): A Speculative Indicator

The Grey Market Premium (GMP) is an unofficial measure of the expected listing gain on an IPO. While not regulated by SEBI, the GMP provides insights into market expectations based on unofficial trading before the stock is listed on the exchange.

What is GMP?

GMP refers to the difference between the expected IPO listing price and the issue price, as traded in the unofficial grey market. For example, if the IPO issue price is ₹100 and the GMP is ₹50, then the expected listing price is ₹150.

Sources of GMP Data

• Reported by grey market brokers and portals like IPO Watch, IPO Central, and Chanakya.
• Changes frequently based on investor sentiment, subscription status, and market momentum.

Should Retail Investors Rely on GMP?

• Useful as a sentiment indicator: High GMP may suggest strong expected demand.
• Not foolproof: GMP is not regulated and can be manipulated by speculators.
• High-risk reliance: Many IPOs with high GMP have listed flat or in loss due to market corrections.

Examples of GMP Performance in 2025

In conclusion, GMP is a speculative tool, not a reliable investment guide. Use it alongside subscription numbers, anchor investor details, and financial metrics for a balanced IPO decision.

20. Final Words: Making Informed IPO Investments in 2025

Investing in an IPO can be a rewarding experience, especially in a bullish market like 2025. However, the high number of IPOs and increased investor interest also means greater risk. It is crucial for retail investors to stay informed, perform thorough due diligence, and avoid getting swayed by hype or grey market signals alone.

Checklist Before Applying to an IPO

• ✅ Read the Red Herring Prospectus (RHP) for financial and business details.
• ✅ Check promoter background and company valuation compared to peers.
• ✅ Analyze subscription data, especially from QIBs and NIIs.
• ✅ Review anchor investor interest and investment breakup.
• ✅ Assess long-term growth potential and risks.
• ✅ Never invest just based on GMP or influencer advice.

Smart Tips for Retail IPO Investors

1. Diversify Your Investments: Don’t put all your money in IPOs—balance with mutual funds, stocks, and fixed deposits.
2. Apply Through UPI Mandate or ASBA: Use secure and verified methods to apply for IPOs.
3. Track Listing Day: If your goal is listing gains, monitor pre-open market trends and sell accordingly.
4. Hold Quality Stocks: If the company has strong fundamentals, hold it long-term for compounded returns.

Expected IPO Trends in the Coming Months

• More new-age tech startups likely to launch IPOs.
• Government divestment plans (like LIC follow-up issues) may revive in Q3/Q4.
• SME IPO space expected to remain active due to faster listing and oversubscription trends.

As of July 2025, IPOs remain a popular and dynamic avenue for wealth creation. But they should not replace disciplined financial planning. Always consult your financial advisor, especially for high-risk or leveraged investments.

Stay updated with SEBI announcements and official NSE/BSE updates to ensure safe and informed IPO investing.

For real-time IPO updates, visit:
SEBI Official Website |
NSE India |
BSE India

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Disclaimer:

The content provided in this article is for informational and educational purposes only. It does not constitute investment advice, financial guidance, or a recommendation to invest in any specific IPOs or securities. Readers are advised to consult with a SEBI-registered financial advisor or conduct their own independent research before making any investment decisions. Past performance of IPOs or anchor investors is not indicative of future results. The website cmaknowledge.in and its authors are not liable for any financial losses or decisions made based on the content presented herein.