Top Indian IPOs of Past Decades: Successes & Failures Analysed

Introduction to IPO Landscape in India

The Indian Initial Public Offering (IPO) market has witnessed significant transformation over the past few decades, emerging as a dynamic and integral component of the nation’s financial ecosystem. Historically, Indian companies relied heavily on traditional sources such as bank loans or private equity to fund their expansion. However, with liberalisation and the steady growth of the Indian economy since the 1990s, IPOs have become an increasingly preferred avenue for raising capital. Today, listing on stock exchanges like the NSE and BSE is not only seen as a symbol of corporate maturity but also as a strategic move to unlock value, attract diverse investors, and fuel future growth. The process of going public allows companies to tap into the wealth of retail and institutional investors across India, fostering greater transparency and adherence to regulatory standards set by SEBI. The growing popularity of IPOs among both businesses and everyday investors reflects the evolving landscape—where informed participation, digital platforms, and a robust regulatory environment have made IPO investing more accessible than ever before. This evolution sets the stage for analysing the most notable successes and failures among top Indian IPOs over recent decades.

2. Key Success Stories: IPOs That Transformed Indian Markets

India’s primary markets have witnessed several IPOs that not only rewarded investors handsomely but also played a pivotal role in transforming the capital market ecosystem. Here, we analyse three of the most influential and successful Indian IPOs—Infosys, Reliance Power, and Zomato—each representing different eras and sectors, yet all leaving a lasting impact on investor sentiment and wealth creation.

Infosys: The Tech Pioneer

Launched in 1993, Infosys’ IPO is often cited as the inflection point for India’s technology sector. The company offered shares at just ₹95 apiece, with retail investors showing moderate enthusiasm initially. However, with consistent performance, robust management, and global expansion, Infosys shares turned early investors into millionaires. The stock’s meteoric rise symbolised India’s IT boom and inspired confidence in Indian equities among the growing middle class.

Infosys IPO Highlights

*Approximate value based on stock splits and bonuses.

Reliance Power: Investor Frenzy & Market Lessons

The Reliance Power IPO in 2008 stands out for its unprecedented investor participation—it was oversubscribed by more than 73 times. Although initially hyped as a game changer due to the Ambani brand and India’s energy needs, its post-listing performance was underwhelming. While it generated tremendous excitement and set new records for retail involvement, it also served as a cautionary tale about speculative investing and market euphoria.

Reliance Power IPO Snapshot

Zomato: New Age Disruption & Digital Boom

The Zomato IPO in 2021 marked a watershed moment for India’s startup ecosystem. As the first major consumer internet company to list on Indian bourses, Zomato attracted enthusiastic participation from millennials and digital-savvy investors. Its listing signalled the maturing of India’s digital economy and paved the way for other unicorns to tap public markets. Despite volatility post-listing, long-term investors continue to see growth potential aligned with changing consumption patterns.

Zomato IPO Insights

The Ripple Effect on Indian Equity Culture

The success stories of Infosys, Reliance Power, and Zomato have collectively shaped investor behaviour and broadened participation across generations. From conservative savers shifting towards equities to young Indians seeking wealth creation through startups, these landmark IPOs have democratised access to capital markets while reinforcing the importance of informed decision-making.

3. Learning from the Laggards: IPOs That Missed the Mark

While India has seen many blockbuster IPOs in the past decades, not every company that entered the markets through an initial public offering managed to create value for investors. Analysing these laggards offers invaluable lessons for both retail and institutional participants. Some high-profile failures such as Jet Airways and Videocon serve as reminders of the risks associated with IPO investments.

Case Study: Jet Airways

Jet Airways, once a household name among Indian flyers, debuted on the bourses with much fanfare. However, its IPO ultimately failed to deliver sustained returns. Several factors contributed to this downfall. The airline faced intense competition, rising operational costs, and regulatory hurdles. More crucially, its valuation during the IPO was seen by many market experts as aggressive, which deterred long-term investors. Additionally, a lack of transparent communication regarding future strategy eroded retail investor trust.

Videocon Industries: A Value Trap

Videocon’s story is another cautionary tale. As a diversified conglomerate, it attracted significant attention during its IPO phase. However, post-listing, the company struggled with mounting debt and a lack of focus on core competencies. Market participants who bought into the initial hype saw their investments erode over time. Overvaluation at listing and poor corporate governance further worsened its performance.

Common Pitfalls in Underperforming Indian IPOs

Analysing these cases reveals some recurring themes behind underperforming IPOs in India:

• Overvaluation: Companies often price their shares optimistically, banking on brand recall rather than fundamentals.
• Lack of Retail Investor Trust: When companies fail to communicate transparently or overpromise on growth prospects, small investors are quick to lose confidence.
• Poor Market Timing: Launching an IPO during volatile or bearish market conditions can limit demand and impact post-listing performance.

The Indian market’s experience shows that due diligence and realistic expectations are essential when evaluating new listings. Investors today pay close attention not just to business models but also to the quality of management and corporate governance practices before committing capital.

4. Factors Behind IPO Success and Failure in India

When analysing the performance of top Indian IPOs over the past decades, it is crucial to understand the factors that have shaped their success or failure. The Indian IPO landscape is unique, influenced by regulatory frameworks, cultural nuances, and dynamic market conditions. Below, we delve into key elements that determine IPO outcomes in India.

SEBI Regulations: Ensuring Transparency and Investor Protection

The Securities and Exchange Board of India (SEBI) plays a pivotal role in regulating IPO processes. Its stringent guidelines are designed to ensure transparency, fair pricing, and protection for retail investors. Companies adhering to SEBI norms typically inspire greater investor confidence, while non-compliance often results in under-subscription or post-listing volatility.

Key SEBI Regulatory Influences on IPOs

Promoter Credibility: The Trust Factor in Indian Markets

For Indian investors, promoter reputation is often as critical as financial metrics. A strong, credible promoter group with a proven track record attracts higher subscription rates and long-term faith among shareholders. Conversely, controversies or governance issues can dampen sentiment regardless of sector prospects.

Market Sentiment: Timing is Everything

The success of an IPO in India is also tied to broader market mood—commonly referred to as bullish or bearish phases. During bullish runs, even average offerings see oversubscription due to FOMO (fear of missing out), while bearish periods can lead to subdued response even for fundamentally strong companies. Local events such as elections, policy changes, or global cues like US Fed announcements further impact demand.

Investor Participation: The Power of Retail Investors & Institutional Buyers

The composition of investor participation—QIBs (Qualified Institutional Buyers), NIIs (Non-Institutional Investors), and RIIs (Retail Individual Investors)—greatly affects listing day performance and long-term stability. High QIB interest usually signals quality, but robust retail involvement is vital for sustaining volumes post-listing.

IPO Subscription Trends in India (Illustrative Table)

Cultural Context: Desi Investment Behaviour & Herd Mentality

Indian investors are known for their community-driven decision-making—often seeking advice from family or local brokers before applying for IPO shares. Media coverage and social media buzz can create herd mentality, leading to dramatic oversubscriptions or sudden withdrawals.

Understanding these factors helps decode the mixed fortunes of Indias largest IPOs—from stellar listings like Coal India and IRCTC to cautionary tales such as Reliance Power. For both issuers and investors, aligning with these realities is essential for navigating the evolving Indian capital market landscape.

5. Cultural Dimensions: How Indian Investors View IPOs

The relationship between Indians and Initial Public Offerings (IPOs) is deeply rooted in the nation’s unique financial culture. Understanding how Indian investors—both retail and institutional—perceive IPOs provides critical insights into the successes and failures of major listings over the past decades.

The Mindset of Indian Investors

India’s saving tradition is renowned worldwide, with families prioritising safety nets for the future. Traditionally, this meant gold, fixed deposits, or real estate. However, with liberalisation, rising financial literacy, and digital transformation, a new era of equity investing has emerged. For many Indians, IPOs are seen as a gateway to wealth creation—a chance to participate in the country’s growth stories from the ground up.

Aspirations and Investing ka Craze

The aspiration for quick gains has fuelled what is now called the ‘investing ka craze’, especially among young professionals in cities like Mumbai, Bengaluru, and Hyderabad. Social media buzz, celebrity endorsements, and stories of overnight millionaires have made IPOs aspirational events. While some see them as a long-term investment opportunity, others approach IPOs with a trading mindset, seeking listing gains.

Risk Appetite: Cautious Yet Ambitious

Indian investors display a complex risk appetite. While retail investors remain cautious—often influenced by family advice or past experiences—institutional players exhibit greater aggression, leveraging research and analytics to back their choices. The recent wave of tech IPOs has tested this balance, as high-profile listings have both rewarded and burned investors depending on market timing and company fundamentals.

Savings Patterns & IPO Participation

Despite an increase in equity participation, Indian household savings still predominantly flow into safer avenues. However, the sheer scale of India’s middle class means even a small shift towards equities results in millions of new Demat accounts each year. The popularity of IPO applications during blockbuster issues demonstrates growing confidence—and sometimes herd mentality—among retail participants.

Cultural Influences Shaping Successes & Failures

The outcome of top Indian IPOs often reflects these cultural dimensions. When companies align their narratives with national pride or tap into prevailing consumer trends—such as fintech or e-commerce—the response is overwhelming. Conversely, overvaluation or lack of transparency can quickly erode trust, leading to underperformance post-listing.

In summary, understanding the unique blend of aspiration, caution, community influence, and evolving financial habits is essential to analysing why certain Indian IPOs soar while others stumble in the eyes of investors across Bharat.

6. Lessons for Future Investors

Key Takeaways from Past IPOs in India

The journey of Indian IPOs over the past decades has been a mixed bag, offering both soaring success stories and cautionary tales. For aspiring investors and entrepreneurs, each public issue—be it a blockbuster like Infosys or a sobering case like Reliance Power—delivers critical insights. The ever-evolving landscape of the Indian stock market demands that participants keep their eyes wide open, learn from history, and adapt to the unique local context.

Emphasise Informed Investing

One of the biggest lessons is the importance of informed investing. Blindly following market trends or hype can be risky. Instead, focus on understanding the business model, sector potential, promoter credibility, and future growth prospects. Reading DRHPs (Draft Red Herring Prospectus), attending investor roadshows, and analysing independent expert opinions are smart moves for every savvy Indian investor.

Due Diligence Is Non-Negotiable

No matter how promising an IPO appears, always conduct thorough due diligence. Scrutinise financial statements, evaluate debt levels, assess management integrity, and compare with peer companies. Remember that past high-profile failures often stemmed from inadequate transparency or governance issues—something vigilant research can help avoid.

Align with India’s Dynamic Financial Future

The Indian economy is rapidly transforming, driven by digital adoption, demographic shifts, and government reforms like Make in India and Digital India. Investors must align their strategies with this evolving landscape by choosing companies ready to capitalise on these megatrends. Look for businesses embracing innovation, sustainability, and robust corporate governance.

For Entrepreneurs: Build Trust & Deliver Value

For founders eyeing the public markets, credibility matters more than ever before. Focus on transparent disclosures, consistent performance, and long-term value creation rather than short-term gains. Your brand’s reputation will directly impact your IPO’s reception among increasingly discerning Indian investors.

Final Thoughts

The highs and lows of India’s IPO history serve as a reminder that while equity markets offer immense wealth creation opportunities, they also come with risks. By prioritising education, due diligence, and alignment with India’s growth story, both investors and entrepreneurs can contribute to—and benefit from—the next wave of financial innovation in Bharat.