Mixed IPO Listings Put Focus on Valuation as Hero Motors Extends Gains

Nidhi Thakur

October 1, 2026

Newly listed stocks have shown mixed performance as Elevate Campuses and ArMee Infotech struggled around their listing prices, while Hero Motors continued to gain strongly. The contrasting moves have brought valuation, profitability and business fundamentals into focus for investors tracking recent IPOs. Elevate Campuses made a weak debut on September 30, listing at ₹356.50 on the BSE and ₹355.10 on the NSE against its IPO price of ₹362. The stock's listing came at a discount of around 2% despite grey market indications of a small premium before the debut.

Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted high leverage, acquisition-related risks and declining occupancy as key concerns for Elevate Campuses. She also pointed to a significant one-time gain in FY26 earnings, which makes the valuation of the core business more demanding. ArMee Infotech also had a muted listing. The stock opened at ₹368.85 on the BSE against its IPO price of ₹375 and at ₹375 on the NSE. It later fell sharply, touching ₹320 on the BSE and ₹317.40 on the NSE. The ₹300 crore IPO received total subscription of 2.44 times.

Nyati said ArMee's valuation was relatively reasonable compared with peers, but declining PAT margins, higher debt and significant customer concentration remained concerns. She suggested that existing investors could track a stop-loss around ₹350, while fresh buying could be considered after clearer improvement in profitability and leverage. In contrast, Hero Motors continued its strong post-listing rally. The stock gained more than 7% on September 30 and traded around 78% above its IPO price of ₹84. It opened at ₹140.30 on the BSE and touched an intraday high of ₹149.35.

Nyati has highlighted Hero Motors' position in powertrain solutions and its exposure to the electric vehicle opportunity. At the same time, she pointed to the stock's valuation of around 69–74 times P/E compared with a peer average of 50.2 times. She also noted that RoNW and EBITDA margins remained below those of key peers and flagged customer concentration as a risk.

The performance of these newly listed stocks shows how differently IPO shares can behave after listing. While some stocks have struggled to hold their issue prices, others have seen sharp gains. For investors, valuation, earnings quality, leverage and the strength of the underlying business remain important factors after an IPO debut.