Thu Jul 17 03:50:00 UTC 2025: **News Article:**

**IPO-Bound Stocks See Sharp Correction After HDB Financials IPO Disappointment**

**New Delhi, India** – Several highly anticipated IPO-bound stocks, including the National Stock Exchange of India (NSE), Tata Capital, and National Securities Depository (NSDL), have experienced a significant correction of up to 20% from their recent highs in the unlisted market. This downturn follows the disappointing price band adjustment for HDB Financial Services’ IPO and a general lack of enthusiasm surrounding upcoming primary offerings.

HDB Financial Services’ IPO served as a reality check for the pre-IPO market, with shares issued at ₹740 apiece, nearly 40% below their previous unlisted market high of ₹1,250. The stock’s listing at ₹835 also represented a substantial discount.

This isn’t an isolated incident. Experts caution that investors have previously suffered losses by purchasing IPO-bound stocks at inflated valuations. Examples include UTI AMC, Tata Technologies, and Waaree Energies, all of which launched their IPOs at discounts of up to 50% from their unlisted prices.

“The recent correction in unlisted IPO-bound stocks reflects the cyclical nature of capital markets,” said Ranjit Jha, Founder & CEO at Rurash Financials. “Corrections, especially during periods of economic slowdown, are both natural and healthy.”

Currently, NSDL shares have fallen by over 20% to ₹1,025 in the pre-IPO market, after recently trading between ₹1,275-₹1,300. The company’s IPO approval expires on July 31, 2025, necessitating a fresh application if the launch is delayed. Similarly, Tata Capital, expected to debut by September 2025, has seen a 20% drop from its highs, trading in the ₹850-₹875 range. NSE’s unlisted shares have also declined by over 10% to ₹2,150.

Analysts attribute the initial rally in unlisted shares to long-term growth narratives, strong parentage, and FOMO (fear of missing out). However, they emphasize that fundamentals and financial performance eventually come into play, leading to corrections.

InCred Equities highlights the benefits of unlisted shares, including early access to high-growth companies and portfolio diversification. However, they also warn of liquidity risks, noting that exits can be lengthy and depend on finding a willing buyer.

Krishna Patwari, Founder and Managing Director of Wealth Wisdom India, notes that the HDB Financial Services IPO has made investors more cautious, leading to a broader pullback in pre-IPO valuations.

Experts advise investors to exercise caution, avoid chasing brand reputation without evaluating fair value, and seek professional financial advice before investing in unlisted stocks.

Read More