Many 2024 IPOs that entered the market with a bang are now facing investor backlash. High valuations, weak execution, and post-lock-in selling pressure have left big names like Hyundai, Swiggy, Ola Electric, and NTPC Green Energy trading below their listing prices.

Overhyped IPOs, Underwhelming Returns

From being the most talked-about names in the IPO season to becoming laggards, these companies have disappointed investors. Despite big brand names, the stocks are now struggling to gain ground. Investors are asking: Should we wait it out, or cut our losses?

Let’s understand what’s going wrong.

What’s Pulling Down These IPOs?

1. Hyundai Motor India:
India’s second-largest carmaker listed at ₹1,960. But returns have slipped since. Despite being a strong brand, the IPO pricing was seen as steep. Adding to concerns, Hyundai’s IPO was a pure offer-for-sale (OFS) — meaning no fresh money came into the business. That turned off many long-term investors.

Also, expectations in the grey market were high — and when reality didn’t match the hype, disappointment followed.

2. Swiggy:
The food delivery giant is down over 20% from its IPO price. The main trigger? Lock-in expiry, which released 83% of its shares for sale. Investors, especially anchor ones, rushed to exit. Swiggy’s heavy cash burn and weak short-term performance didn’t help either. Losses widened to ₹1,081 crore in Q4FY25, despite strong revenue growth.

3. Ola Electric:
Once seen as a market leader in EVs, Ola’s stock fell after the lock-in period ended. Over 18 crore shares became tradable, and the stock tumbled 7%. Market share slipped to 32% in Q4, with rivals like TVS and Bajaj catching up. Poor after-sales service and weak execution have weighed on the company.

4. NTPC Green Energy:
This renewable energy player hasn’t fallen sharply, but also hasn’t gone anywhere. It’s slightly below issue price. While the sector has long-term promise, the short-term momentum is missing. Investors are still waiting for the story to play out.

What’s the Business Outlook Now?

Hyundai is focusing on EV expansion and a new plant in Pune. Despite some pressure, analysts remain positive on the long-term story.
Swiggy’s core food business is stable, but its quick-commerce arm (Instamart) is still burning cash. That’s dragging the overall numbers.
Ola Electric is facing brand trust issues. Its fall in market share shows that the EV race is heating up.
NTPC Green is expanding its renewable pipeline, and experts believe the company has long-term potential, but short-term returns may stay muted.

Valuations Were Too Aggressive

One common thread across these stocks is that they were priced too high during a euphoric market. When reality kicked in, stocks started falling.

For Hyundai, current valuations are still higher than some other listed auto peers. Swiggy and Ola, with no profits and continued losses, are finding it hard to justify their price tags.

What Should Investors Do?

Analysts are now urging caution. Don’t rush to average down just because a stock is below IPO price. Many of these names were overvalued to begin with, and a price correction doesn’t always mean a buying opportunity.

Investors are hoping that companies planning to list in late 2025 price their IPOs more reasonably, keeping both near-term and long-term performance in mind.

Lesson Learned? Hype Doesn’t Always Pay.

It’s a reminder that not every IPO is worth the buzz. For investors, it’s time to focus on fundamentals, not just grey market premiums or brand names.