Encouraged by last year’s successful startup IPOs, several startups plan to go public this year, including Ather Energy, Bluestone, Ecom Express, and IndiQube. (Representational Image/Freepik)
Startups such as Swiggy, FirstCry, and Ola Electric, which launched some of the largest IPOs among startups in FY25, have significantly underperformed the Nifty, recording sharp declines. While the NSE Nifty 50 recorded modest gains of 5.34% in FY25, shares of Swiggy, FirstCry, and Ola Electric have fallen between 15% and 30% from their issue price.
In contrast, startups with relatively smaller issue sizes have outperformed the index. Managed workspace provider Awfis is up 73% since its listing in May, digital trucking platform BlackBuck has gained 55% since its IPO in November, and travel platform Ixigo has risen 52% since June.
However, over the past six months, a broader market selloff has pushed most recently listed startup stocks into the red. While the Nifty declined 8.8% since October, Ola Electric fell 47%, FirstCry dropped 43.3%, Unicommerce slipped 43.8%, and Swiggy lost 28%. Ixigo (-7.4%) and Awfis (-5.07%) fared relatively better.
“Despite strong listings, the market ultimately values earnings and sustainable growth, leading to corrections in high-valuation stocks,” said Ishan Tanna, Equity Research Analyst at Ashika Institutional Equity.
He added that investor sentiment has turned cautious now, and they are reassessing these startups’ profitability potential in a challenging market environment, which has resulted in sharp post-listing declines across the board.
Content retrieved from: https://www.financialexpress.com/business/start-ups-big-ticket-startup-stocks-falter-in-fy25-3794557/.
