The IPO buzz of 2024 promised big wins, but reality hit hard. Major IPOs like Hyundai Motor India, Swiggy, Ola Electric, and NTPC Green Energy have been bleeding investors, trading below their issue prices.
Why? Lofty valuations, weak execution, and heavy selling once the lock-in periods ended have dragged these stocks down. So, what should investors do now — hold tight or cut losses?
What Went Wrong with These IPOs?
Hyundai Motor India, the biggest IPO of 2024, debuted at Rs 1,960 but has slipped nearly 4% since listing. The company’s strong brand and market presence couldn’t shield it from high pricing and stiff competition.
Market expert Kranti Bathini points out that while Hyundai’s earnings weren’t bad, its pure offer-for-sale (OFS) structure raised concerns because no fresh capital went into growth. Plus, Hyundai traded at a premium in the grey market before listing, setting expectations too high.
Swiggy has fared worse — its shares have dropped over 20% since the IPO. The expiry of its lock-in period in April unlocked 83% of shares, triggering heavy selling.
Anchor investors used the chance to exit, and the stock fell 6.4% in a day, hitting a 52-week low. Swiggy’s losses deepened, with Q4FY25 net loss nearly doubling despite a 45% revenue jump. “Growth looked great on paper, but fundamentals lagged,” says Bathini.
Ola Electric’s story is similar. After listing at Rs 76, it fell below that price post lock-in expiry when 18 crore shares became tradable. Weak execution, after-sales problems, and negative news hurt confidence. Ola’s market share slipped to 32%, now trailing rivals like TVS and Bajaj.
NTPC Green Energy, backed by the PSU giant, is slightly below its issue price but has avoided major lock-in pressure. The renewables theme was hot during its listing, but enthusiasm has cooled. Still, its quality and long-term growth plans keep analysts hopeful.
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What Does This Mean for Investors?
For the average investor, these IPOs feel like a rough ride after the initial hype. They remind us that a flashy IPO isn’t a guaranteed win. High pricing during market euphoria often means the bar is set too high.
As market expert Deepak Jasani says, “Many were overvalued from the start, and the post-lock-in sell-off just made things worse.”
If you own these shares, don’t panic but stay alert. Hyundai and NTPC Green have decent long-term prospects, with plans for growth and expansion. Swiggy and Ola need to solve execution issues and reduce losses before the market turns more positive.
So, Should You Hold or Fold?
If you like stories with a silver lining, Hyundai and NTPC Green remain strong bets for the long haul. Swiggy and Ola could still turn around but need time and better execution. For now, be cautious about doubling down on these stocks unless you have a strong stomach and a long investment horizon.
The IPO party of 2024 is a wake-up call. Investors are learning that hype doesn’t always equal value. Next time, watch for realistic pricing, solid fundamentals, and clear growth plans before jumping in.
Disclaimer:
This article is for information only and not financial advice. Please do your own research or talk to a financial expert before investing. Investing has risks, and past results don’t guarantee future success.
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