PolicyBazaar and Ixigo generated consistent alpha, supported by strong fundamentals
Nearly 36 per cent of new-age IPOs between May 2020 and June 2025 have managed to outperform the broader market in the long run, according to a whitepaper by Client Associates.
The study, “The New-Age IPO Performance Analysis,” reviewed 25 tech-led companies across fintech, logistics, consumer internet, quick commerce, and SaaS that went public over the past five years. Using the BSE 500 as a benchmark, the research found a sharp divergence between initial listing gains and sustained shareholder returns across three key entry points: pre-IPO, IPO, and post-IPO.
Strong listing gains fade for majority of companies
While 68 per cent of IPOs delivered average listing gains of 24.15 per cent, the momentum faded quickly, with just over a third showing long-term alpha for IPO investors.
Post-IPO investors emerged as the most disadvantaged, with only 32 per cent seeing positive returns.
Pre-IPO investors, although better positioned, still had mixed results — 43 per cent outperformed, while others faced steep losses.
Technology-enabled service companies with clear monetisation models, such as Zomato (Eternal) and Nazara, significantly outperformed capital-heavy businesses.
The report highlighted that these companies, and B2B SaaS companies such as Awfis and Zaggle, demonstrated superior longer-term performance.
Paytm, Ola Electric fail to meet post-listing expectations
Meanwhile, high-profile IPOs such as Paytm and Ola Electric have failed to live up to the hype and have not delivered returns to their investors, due to factors ranging from overvalued IPOs to loss of market share to listed peers post-listing.
PolicyBazaar and Ixigo have consistently generated alpha over the BSE 500 across different investor categories, supported by strong fundamentals.
In addition, BSE’s listed shares generated an 84.73 per cent annual outperformance over NSE over the last four years.
Study says narrative, not numbers, drove IPO boom
According to Nitin Aggarwal, Director – Investment Research and Advisory at Client Associates, the startup IPO boom was driven more by narrative than numbers.
“Our analysis shows that while listing gains rewarded early risk-takers, sustained outperformance was reserved for companies built on solid fundamentals — not hype. Capital-efficient growth, profitability, and business discipline are what drive long-term value,” Aggarwal said.
Investors need to move beyond FOMO and focus on backing resilient, scalable businesses, he added.
Profitability, cash flow generation, and capital efficiency are emerging as the key investor benchmarks, the report read.
Published on August 13, 2025
