The ability of entrepreneurs and other promoters of start-up businesses to exit through an initial public offering is an important component of a mature capital market. The returns on initial public offerings (IPOs) on the Shanghai and Bombay stock exchanges over a 14-year period to May 2007 are analysed in this paper. Consideration is given to the medium to longer-term returns accruing to the new listings. The focus is not on initial subscribers' gains or losses on listing but rather on the extent to which new listings continue and generate at least normal returns. The two emerging economies considered have differing political, legal and economic systems and exhibit significantly different return patterns.