Down over 30%: These 40 IPOs of FY26 turned wealth destroyers; do you own any?

Primary market was on a roll in financial year 2025-26 (FY26) with as many as 108 mainboard companies raising over Rs 1.7 lakh crore via IPO route. The reality check for the Indian IPOs hit investors hard as nearly one-and-a-half dozen issues turned wealth destroyers, falling at least 50 per cent over their issue price, with some issues wiping out up to 70 per cent of investors' wealth.

According to the data from CMIE Prowess, 67 per cent of listings between April 2025 and March 2026 delivered negative returns to the investors. More than 40 issues were listed on discount with five companies wiping out more than one-fourth of their value on listing itself.

Companies including Glottis (down 70.34 per cent), VMS TMT (down 65.14 per cent), Mangal Electrical Industries (down 62.83 per cent), Arisinfra Solutions (down 62.08 per cent), Jinkushal Industries (down 60.75 per cent) and Shree Ram Twistex (down 60.68 per cent) are the biggest wealth destroyers of FY26.

They are followed by Solarworld Energy Solutions, Gem Aromatics, Jaro Institute, Om Freight Forwarders, Laxmi India Finance, Oswal Pumps, Globe Civil Projects, BMW Ventures, Ellenbarrie Industrial, Seshaasai Technologies, Dev Accelerator and Indogulf Cropsciences, which have cracked 50-60 per cent from their respective IPO price.

Other debutants including Ganesh Consumer Products, Vikran Engineering, Vikram Solar, Excelsoft Technologies, Indiqube Spaces, Highway Infrastructure, M&B Engineering, GK Energy, Patel Retail, Regaal Resources, Brigade Hotel Ventures, Innovision,  Kalpataru, Pace Digitek and Epack Prefab Technologies have wiped out more than one-third of investors' wealth from IPO price.

On the debut, worst listings include names like Om Freight Forwarders, Glottis and Shree Ram Twistex which were listed at 30-37 per cent below their IPO prices, while Innovision and BMW Ventures debuted at 27 per cent and 25 per cent below their issue prices, respectively. 

Kranthi Bathini, Director of Equity Strategy at Wealthmills Securities said that IPO markets were hit hard by major factors including volatility in the broader markets led by geopolitical concerns and FII exodus. Besides that, there was a major mismatch between IPO valuations and underlying fundamentals of the company as existing investors offloaded their stake a premium.

He also emphasized on the fact that the majority of recently-listed companies failed to deliver strong quarterly earnings post debut, which in-turn, dampened the sentiments. "In the upcoming fiscal years, IPO market sentiments will be guided by the performance of much-awaited issues like Reliance Jio, National Stock Exchange of India, PhonePe and others."

On the other hand, Ankit Patel, Co-founder and Partner at Arunasset Investment Services believe that success of Reliance Jio or NSE IPO may not over overhaul the dampened sentiments for primary markets. "IPOs are not able to command and sustain premium multiples and we believe that a lot of IPOs shall be deferred in FY27," he said.

Patel also said that secondary markets, after the recent meaningful correction, will attract more inflows as the primary markets losses the steam. For IPO investors get some strong listing gains, both sentiments and valuations need to turn attractive, he adds.