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Top IPOs That Failed In 2024 English

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Top IPOs That Failed In 2024

Issuer CompanyIssue TypeIssue PriceListing Day Price
M.V.K. Agro Food Product LtdSMERs 120.00Rs 82.95 (-30.87%)
Kalana Ispat LimitedSMERs 66.00Rs 47.40 (-28.18%)
BikeWo GreenTech LimitedSMERs 62.00Rs 47.25 (-23.79%)
Deepak Builders & Engineers India LimitedMainlineRs 203.00Rs 161.90 (-20.25%)
Saj Hotels LimitedSMERs 65.00Rs 52.45 (-19.31%)
JG Chemicals LimitedMainlineRs 221.00Rs 184.65 (-16.45%)
Italian Edibles LimitedSMERs 68.00Rs 57.75 (-15.07%)
Excellent Wires and Packaging LimitedSMERs 90.00Rs 77.95 (-13.39%)
3C IT Solutions & Telecoms (India) LimitedSMERs 52.00Rs 45.16 (-13.15%)
Paramount Dye Tec LimitedSMERs 117.00Rs 101.70 (-13.08%)
ACME Solar Holdings LimitedMainlineRs 289.00Rs 253.50 (-12.28%)
Jana Small Finance Bank LimitedMainlineRs 414.00Rs 368.20 (-11.06%)
Gopal Snacks LimitedMainlineRs 401.00Rs 360.05 (-10.21%)
EPACK Durable LimitedMainlineRs 230.00Rs 207.70 (-9.7%)
Entero Healthcare Solutions LimitedMainlineRs 1,258.00Rs 1,149.50 (-8.62%)
R K SWAMY LimitedMainlineRs 288.00Rs 263.25 (-8.59%)
DCG Cables & Wires LimitedSMERs 100.00Rs 91.55 (-8.45%)
Sona Machinery LimitedSMERs 143.00Rs 131.25 (-8.22%)
Western Carriers (India) LimitedMainlineRs 172.00Rs 159.45 (-7.3%)
Western Carriers (India) LimitedMainlineRs 172.00Rs 159.45 (-7.3%)

Understanding IPO Failures

IPO failures occur when a company’s shares fail to generate investor interest during its initial public offering. This can result from overpricing, weak financials, or poor market conditions, leading to a lackluster subscription or negative post-listing performance.

Market timing plays a crucial role in IPO success. Economic downturns or market volatility can deter investors, even if the issuing company has strong fundamentals. An unfavorable macroeconomic environment can thus lead to an IPO failing to meet its objectives.

Failed IPOs reflect a mismatch between investor expectations and the company’s valuation or growth story. They highlight the importance of proper pricing, transparent communication, and robust business fundamentals in attracting investor confidence.

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List Of Failed IPOs In India

Issuer CompanyIssue TypeListing Day Price Rs.
Capital Small Finance Bank LimitedMainline434.30 (-7.2%)
Western Carrie(India) LimitedMainline159.45 (-7.3%)
Vishwas Agri Seeds LimitedSME83.60 (-2.79%)
Godavari Biorefineries LimitedMainline342.85 (-2.6%)
Sagility India LimitedMainline29.36 (-2.13%)
BikeWo GreenTech LimitedSME47.25 (-23.79%)
Saj Hotels LimitedSME52.45 (-19.31%)
Italian Edibles LimitedSME57.75 (-15.07%)
Excellent Wires and Packaging LimitedSME77.95 (-13.39%)
3C IT Solutions & Telecoms (India) LimitedSME45.16 (-13.15%)
Paramount Dye Tec LimitedSME101.70 (-13.08%)
Jana Small Finance Bank LimitedMainline368.20 (-11.06%)
Gopal Snacks LimitedMainline360.05 (-10.21%)
Entero Healthcare Solutions LimitedMainline1,149.50 (-8.62%)
Western Carrie(India) LimitedMainline159.45 (-7.3%)
Popular Vehicles & Services LimitedMainline276.25 (-6.36%)
Ztech India LimitedSME105.00 (-4.55%)
M.V.K. Agro Food Product LtdSME82.95 (-30.87%)
Kalana Ispat LimitedSME47.40 (-28.18%)
Deepak Builde& EngineeIndia LimitedMainline161.90 (-20.25%)
JG Chemicals LimitedMainline184.65 (-16.45%)
ACME Solar Holdings LimitedMainline253.50 (-12.28%)
EPACK Durable LimitedMainline207.70 (-9.7%)
R K SWAMY LimitedMainline263.25 (-8.59%)
DCG Cables & Wires LimitedSME91.55 (-8.45%)
Sona Machinery LimitedSME131.25 (-8.22%)
Usha Financial Services LimitedSME155.85 (-7.23%)
Hyundai Motor India LimitedMainline1,820.40 (-7.12%)
Phoenix Overseas LimitedSME60.80 (-5%)
Sameera Agro And Infra LimitedSME171.00 (-5%)
Falcon Technoprojects India LimitedSME88.20 (-4.13%)
Ceigall India LimitedMainline386.05 (-3.73%)
Baweja Studios LimitedSME173.85 (-3.42%)
Mandeep Auto Industries LimitedSME65.35 (-2.46%)
Krystal Integrated Services LimitedMainline712.30 (-0.38%)
Premium Plast LimitedSME48.90 (-0.2%)

Reasons Behind IPO Failures

The main reasons for IPO failures include overvaluation, where the offering price exceeds what investors perceive as fair, deterring participation and subscription.

Weak financial health or lack of a clear business growth story also contributes to IPO failures. Investors hesitate to back companies that lack stability or long-term potential, affecting subscription levels.

Market sentiment heavily influences IPO outcomes. Negative investor sentiment due to geopolitical, economic, or sector-specific issues can cause even fundamentally sound IPOs to underperform or fail.

Impact of Failed IPO In India

Failed IPOs in India can erode investor confidence, making them cautious about participating in future public offerings and impacting the overall capital market ecosystem.

Such failures can discourage companies from raising funds through public markets, affecting their expansion plans and slowing down sectoral or economic growth opportunities.

Additionally, failed IPOs often lead to financial losses for underwriting banks and other stakeholders, causing ripple effects across the investment banking and retail trading industries.

Top IPOs that failed in 2024- Quick Summary

  • In 2024, IPOs like M.V.K. Agro Food (-30.87%), Kalana Ispat (-28.18%), BikeWo GreenTech (-23.79%), and Deepak Builders (-20.25%) underperformed significantly, reflecting challenges in SME and Mainline markets with steep listing-day price drops.
  • IPO failures occur when a company’s initial public offering does not meet expected subscription levels or performs poorly post-listing, often due to overvaluation, weak financials, or unfavorable market conditions.
  • Notable failed IPOs in India include Paytm’s 2021 listing, which saw a significant drop in share value post-IPO, and Hyundai Motor India’s 2024 IPO, which debuted at a discount. 
  • Common reasons for IPO failures include overpricing, weak company fundamentals, poor market timing, and lack of investor confidence, leading to under-subscription or negative post-listing performance.
  • Failed IPOs in India can erode investor confidence, deter future public offerings, and result in financial losses for stakeholders, affecting the overall capital market ecosystem.
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List Of Failed IPOs In India – FAQs  

1. What is IPO?

An IPO (Initial Public Offering) is when a private company offers its shares to the public for the first time, raising capital and becoming a publicly traded entity on the stock exchange.

2. Which were the most notable IPOs that underperformed in 2024?

Notable underperformers in 2024 include M.V.K. Agro Food (-30.87%), Kalana Ispat (-28.18%), BikeWo GreenTech (-23.79%), and Deepak Builders (-20.25%), reflecting significant challenges in market pricing and investor sentiment.

3. What were the key reasons for IPO failures in 2024?

The key reasons for IPO failures in 2024 included overvaluation, weak market conditions, unfavorable macroeconomic factors, and lack of investor confidence in the issuing company’s financial health or growth potential.

4. Which sectors saw the most IPO failures in 2024?

The SME sector experienced the most IPO failures in 2024, with companies from agriculture, steel, and green technology struggling to meet investor expectations, leading to under-subscription and negative listing performances.

5. Can investors recover losses from failed IPOs?

Investors cannot directly recover losses from failed IPOs, but they can mitigate future risks by diversifying portfolios, conducting thorough due diligence, and carefully evaluating a company’s fundamentals before investing.

6. Can a failed IPO company try again in the future?

Yes, a failed IPO company can attempt another public offering in the future by addressing key concerns, improving financial health, and reassessing market conditions for better investor confidence and market timing.

7. What should companies do to avoid IPO failures?

To avoid IPO failures, companies should ensure fair pricing, improve financial transparency, time the IPO during favorable market conditions, and effectively communicate their growth story and fundamentals to potential investors.

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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