IPO Debacles and 2025 Caution: Lessons from WeWork India and the R Power Mania Benchmark

IPO drama worth studying is front and center in the 'IPO debacle and lessons learnt' thread. It flags WeWork India's listing as a case of overpriced pricing, governance glitches, and promoters tangled in legal battles—raising questions about long-term viability and the readiness of the IPO to deliver. The thread argues that the mechanics around underwriters, anchor investors, and hype shape retail outcomes today.^[1]

• JM Financials, ICICI Securities, Jefferies, Kotak Mahindra Capital, and 360 One WAM acted as BRLMs, aggressively listing companies on the mainboard and underwriting shortfalls.^[1] • Anchor investors included ICICI Prudential Technology Fund, HDFC Mutual Fund in schemes like HDFC Business Cycle Fund, HDFC Innovation Fund, HDFC Value Fund, and HDFC Balanced Advantage Fund, with some funds linked to BRLMs—sparking questions of conflict of interest and “self-dealing” under the guise of institutional support.^[1] • Ceigall India IPO shows a similar pattern, with underwriters ICICI Securities, JM Financial and registrar MUFG Intime; the post notes back-channel activity and fund-manager allocations as drivers of weak debuts.^[1]

On the nostalgia side, Reliance Power's 2008 IPO stands as a fever pitch example: the post recalls a jaw-dropping subscriptions figure (7.12 Lk crores worth) that flopped in reality, a reminder that hype can outpace fundamentals.^[2]

Takeaways for 2025 Indian markets: insist on rigorous due diligence, scrutinize how pricing is set, watch anchor-investor structures, and demand fiduciary integrity from AMCs to curb hype-driven retail pain. The thread’s lessons are a practical manual for today’s IPO-watch in India.^[1]

References