Saturday, 19 September India Edition
The Pulse
← Back to feed
TopOngoing4 days ago

Do mega IPOs guarantee mega returns? Hyundai, LIC and Paytm say no

NSE's ₹22,561-crore IPO opens this week, but history shows India's biggest issues — Hyundai, LIC, Paytm — mostly burned primary investors on listing day.

01 / What happened

What happened

NSE's ₹22,561.60-crore IPO — India's second-largest ever — opens 17 September with GMP signalling only a ~10.7% listing gain, while Hyundai, LIC and Paytm, past mega issues, all listed at a loss.

The National Stock Exchange's ₹22,561.60-crore IPO opens on 17 September, the second-largest public issue India has ever seen.

The grey market, however, is unimpressed: a GMP of ₹192 points to a listing near ₹1,977 — a gain of roughly 10.7% at the upper band of ₹1,785.

History argues for caution. Hyundai Motor India's record ₹27,870-crore issue fell 7.12% on debut, closing at ₹1,820.40 against a ₹1,960 issue price.

LIC's ₹20,557-crore IPO opened at ₹872 versus ₹949, and at ₹403.80 (post-bonus) still leaves 2022 allottees underwater four years on.

Paytm was harsher still: a 9% discount listing and a 23%+ first-day slide to ₹1,560.80. Reuters counts seven of India's ten biggest IPOs falling on day one.

NSE IPO sizeTotal issue value — entirely OFS of 12.64 crore shares, second-largest in Indian history after Hyundai Motor India
₹22,561.60 crore
Est. listing gain from GMPGMP of ₹192 on upper band ₹1,785 implies listing near ₹1,977 — tepid vs. the mega buzz
~10.76%
Hyundai Motor India listing-day lossClosed at ₹1,820.40 vs. ₹1,960 issue price on the ₹27,870-crore, then-largest Indian IPO
-7.12%
LIC IPO listing-day lossLIC opened at ₹872 on NSE vs. ₹949 issue price on 17 May 2022 — biggest IPO of its day, still underwater for primary investors years later
-7.8%
Timeline

How India's biggest IPOs debuted

First-day outcomes for the heavyweight issues that preceded NSE's IPO.

  • May 2022 — LIC lists at ₹872 vs ₹949 issue price (-7.8%), ₹20,557-crore issue
  • Dec 2022 — Paytm lists at 9% discount, ends day one at ₹1,560.80 vs ₹2,150 issue price
  • Oct 2024 — Hyundai Motor India, India's largest IPO (₹27,870 crore), falls 7.12% on debut
  • Sep 2026 — NSE IPO opens with GMP hinting at only ~10.7% listing gain
What Next

What to weigh before bidding

The NSE issue is a pure offer for sale — no money goes into the exchange — and valuations are rich at a 42.89x pre-IPO P/E, with FY26 PAT moderating to ₹10,302.06 crore from ₹12,187.69 crore in FY25.

  • Bid window: 17–21 September 2026; price band ₹1,700–₹1,785; lot size 8 shares
  • GMP of ₹192 implies listing near ₹1,977 — about 10.7% over the upper band
02 / Why it matters

Why it matters for me

Primary allottees chasing mega-IPO buzz face a real risk of listing-day losses — size and prestige have not protected past mega-issue investors.

Money

Financial-loss · Direct · High

Retail Investors · Market Participants

Primary allottees in India's biggest IPOs have repeatedly booked first-day losses — Hyundai -7.12%, LIC -7.8% (still underwater in 2026), Paytm -23% — so NSE bidders face the same listing-day risk.

Money

Opportunity · Direct · Medium

Retail Investors

NSE's GMP of ₹192 implies a listing near ₹1,977 — a modest ~10.7% gain for upper-band allottees if the signal holds, well short of mega-IPO expectations.

Daily Life

Just-worth-knowing · Contextual · High

General Public · Retail Investors

Including Hyundai, seven of India's ten biggest IPOs fell on their first trading day — a household-level reminder that an issue's size and prestige are no proxy for listing gains.

03 / The one thing

What to remember

The one thing
Big IPO ≠ big returns: seven of India's ten biggest IPOs fell on day one.

Seven of India's 10 biggest IPOs fell on day one. NSE's ₹22,561-crore issue opens this week — size is no guarantee.

Screenshot this, or share it

Verified sources (7)

Evidence behind the crack
Reporting/Livemint

Amid mega NSE IPO, big question remains — Do big IPOs guarantee big returns? Performance of past heavy-sized IPOs

PrimaryPublished Sep 14, 2026Accessed Sep 15, 2026
Reporting/Reuters

Hyundai Motor India drops 7% on debut after country's biggest ever IPO

CorroboratingPublished Oct 22, 2024Accessed Sep 15, 2026
Reporting/Economic Times / Reuters

LIC IPO: How LIC's IPO, India's biggest, ended in a downbeat debut

CorroboratingPublished May 17, 2022Accessed Sep 15, 2026
Reporting/News9

NSE IPO: Check GMP; price band Rs 1,700-1,785; bid opens on September 17

CorroboratingPublished Sep 11, 2026Accessed Sep 15, 2026
Reporting/Outlook Money

NSE IPO Price Band Set At Rs 1,700 To Rs 1,785 Per Share: Check GMP, Lot Size, And Issue Details

CorroboratingPublished Sep 11, 2026Accessed Sep 15, 2026
Research/IPOJi

NSE IPO 2026 Review: Price Band, Dates, Lot Size & Financials

CorroboratingPublished Sep 1, 2026Accessed Sep 15, 2026
Reporting/Angel One

Paytm Shares make a listing on NSE at Rs. 1955, with 9% discount

CorroboratingPublished Dec 22, 2022Accessed Sep 15, 2026

Claims and linked sources

9 claims
FactVerifiedHigh confidence

The NSE IPO, opening 17 September 2026 and closing 21 September 2026, is priced at ₹1,700–₹1,785 per share and is entirely an Offer for Sale (OFS) worth approximately ₹22,561.60 crore (12.64 crore shares) with a lot size of 8 shares — making it the second-largest public issue in Indian history after Hyundai Motor India.

NumberVerifiedMedium confidence

Grey Market Premium for NSE shares is quoted around ₹189–₹192 per share, implying an estimated listing gain of roughly 10.6%–10.8% if the issue prices at the upper band of ₹1,785 — a tepid signal versus the mega-fanfare surrounding the deal.

FactVerifiedHigh confidence

Hyundai Motor India's record ₹27,870-crore IPO (India's largest ever, closing October 2024) crashed on its listing day, falling 7.12% from the ₹1,960 issue price to ₹1,820.40 on the NSE — a direct counterexample to the 'big IPO = big return' thesis.

FactVerifiedHigh confidence

Paytm's ₹18,300-crore IPO listed at a 9% discount (opening at ₹1,955 on BSE/₹1,950 on NSE against a ₹2,150 issue price) on 22 December 2022, and crashed to ₹1,560.80 by the end of the day — a 23%+ loss for investors who bought at the upper band.

FactVerifiedHigh confidence

LIC's ₹20,557-crore IPO (the then-largest in Indian history) listed at a 7.8%–8.1% discount — opened at ₹872 on NSE against a ₹949 issue price — on 17 May 2022 and has remained underwater for primary-market investors even years later.

FactVerifiedHigh confidence

LIC shares traded at ₹403.80 on the NSE last Friday (as of 14 September 2026), still a heavy loss-making affair for the original 2022 allottees after a 1:1 bonus share adjustment; 52-week high ₹468.48, low ₹360.75.

Linked evidence
ContextVerifiedHigh confidence

Reuters noted that including Hyundai, seven of India's ten biggest IPOs have seen share-price falls on their first day of trading — establishing that size alone does not protect primary-market returns.

Linked evidence
ContextPartially verifiedMedium confidence

Tata Technologies' IPO is cited by Livemint as the fourth case-study among recently listed large-sized IPOs that failed to reward primary investors, reinforcing the pattern across LIC, Paytm, Hyundai and Tata Technologies.

Linked evidence
NumberVerifiedHigh confidence

NSE reported FY26 total income of ₹18,713.37 crore and PAT of ₹10,302.06 crore, versus FY25 PAT of ₹12,187.69 crore — a sequential moderation that investors should weigh against the ₹4,41,787.50-crore IPO market cap at the pre-IPO P/E of 42.89x.

Next story3 min read

Is the AI safety debate about safety or control?

Read next story