Only 36% of the IPOs have supplied Alfa in the long term: client employees in the long term

In his recent report, Client Associates (CA), one of the leading multi-family offices of India who manages more than $ 7 billion in assets, revealed that only 36% of the investors in IPOs in the New Age in the long-term accelerated, despite the fanfare, has been in the long term.

The analysis, which covers 25 IPOs guided by technology between May 2020 and June 2025, offers a sobering reality control on the many hyped segment.

The study evaluated investor results on three access points-PRE-IPO, IPO and post-ipo with the help of the BSE 500 index as a benchmark.

While IPO investors in 68% of the cases enjoyed a strong initial quotation profits (on average 24.15%), only about a third saw a persistent outperformance over time. Post-ipo investors did it even worse, with only 32% enjoying Alfa in the long term, which underlines the risk of coming in after the hype peak.

Pre-Ipho participants have experienced highly polarized results. Striking such as Ixigo and Zaggle yielded an exceptional return of 89.29%and 62.47%respectively, while others, such as Ola Electric, saw erosion of more than 60%.

Ca noted that forging six months often offered the best exit options, especially for companies with clear monetization models such as Zomato and Nazara. The report also emphasized the underperformance of the cohort of the “Retail Frenzy” ipos that attracted heavy stores prior to listing. While names such as Zomato and Policybazaar stood out, others such as Paytm and Mobikwik were left behind. In this group, investors after IPO saw an average negative alpha of 25%. Nitin Aggarwal, director-investment testing and advice at CA, summarized the findings: “India’s startup IPO tree was more driven by narrative than figures. Sustined outperformance comes from capital-efficient growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth, profitable growth-n. To concentrate on companies with scalable income, clear profitability paths and healthy governance, while the FOMO theater pieces driven by the retail trade are avoided.

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