Wealth-Destroying IPOs in India Since 2021

Even as India’s IPO market was booming, many high-profile listings ended up destroying investor wealth. Of 280 companies that went public since 2021, 15 have lost over 50% from their listing price, and one in four trades below its issue price. Notable Losers & Their Crashes Popular Vehicles & Services: –58.6% Suryoday SFB: –58.2% Fino Payments Bank: –55.7% DreamFolks Services: –53.3% Credo Brands: –52.8% Star Health & Allied Insurance: –51.5% Paytm

(One97 Communications): –50% Muthoot Microfin: –46% Ola Electric Mobility: –46.6% Barbeque Nation: –45.7% RK Swamy: –42.7% Rishabh Instruments: –35.2% These were IPOs with massive hype but eventually failed to deliver on growth or profitability, leading to steep declines post-listing. What Went Wrong? Sky-high valuations at listing, often based on aggressive projections rather than fundamentals. Weak or unscalable business models—many firms lacked defensible margins or growth barriers. Regulatory shocks hit Paytm and Star Health hard soon after listing. Limited post-listing support: Few delivered on promised scale or earnings, disappointing public shareholders. Investor Lessons Don’t be swayed by hype: High subscription and consumer buzz don’t guarantee returns. Check unit economics: Strong toplines don’t count if profitability is elusive. Track post-listing execution: Many firms falter after listing promises. Understand valuation: Overpaying at listing can cap future returns significantly. Wealth destruction in IPOs reminds us: Fundamentals matter more than hype, and valuation discipline is always vital. These cases underline the risk of investing in start-ups without proven earnings power or realistic growth paths.