Web Exclusive
IPO frenzy: 24 stocks that more than doubled your money in two years

Topics IPO | IPO activity | Happiest Minds

The retail frenzy over initial public offers (IPOs) seen over the past few months is not without reason. Over the past two years, 61 companies have tapped the primary market and raised funds via IPOs. Of these, 24 companies (nearly 39 per cent companies) have more than doubled at the bourses with Happiest Minds, IndiaMart Intermesh, Indian Railway Catering and Tourism Corporation (IRCTC), Affle India and Route Mobile surging 468 per cent to 722 per cent since their listing date till now. (See table below) ALSO READ: Sebi sets up an expert group to examine IPO book-building process .....
The retail frenzy over initial public offers (IPOs) seen over the past few months is not without reason. Over the past two years, 61 companies have tapped the primary market and raised funds via IPOs. Of these, 24 companies (nearly 39 per cent companies) have more than doubled at the bourses with Happiest Minds, IndiaMart Intermesh, Indian Railway Catering and Tourism Corporation (IRCTC), Affle India and Route Mobile surging 468 per cent to 722 per cent since their listing date till now. (See table below)

ALSO READ:Sebi sets up an expert group to examine IPO book-building process

Retail participation in the equity market, according to analysts, has just reached an inflection point due to the low interest rate regime amid lack of investment-worthy avenues that can generate a good return for investors. READ ABOUT IT HERE

“IPOs typically hit the market when the liquidity is good – and it is good right now. Retail investors and banks are flooded with liquidity. A lot of high networth individuals (HNI) and MF money are also chasing stocks. Given this, the participation in the IPOs and companies tapping the primary market will continue for a while. The IPO frenzy will continue and the retail participation will be healthy,” said Prakarsh Gagdani, chief executive officer, 5paisa.com – one of the first and the largest discount broking firms in the country.

ALSO READ: Should you bid for loss-making Devyani International's Rs 1,800 crore IPO?

According to reports, as many as 12 firms have raised Rs 27,000 crore via the IPO route in the first four months of the current fiscal (FY22). In FY20, a total of 13 companies had mopped up Rs 20,352 crore through IPOs, while 14 firms had floated IPOs in FY19 to raise Rs 14,719 crore, reports suggest.

That said, given the subscription levels of some of the recent IPOs, analysts have started to be cautious and suggest investors do not subscribe to every IPO that hits the Street.

“There have been loss making companies as well that have tapped the primary market and have seen a good listing. One needs to be cautious now and not blindly subscribe to every IPO that hits the Street. The markets are becoming frothy now and a correction could just be round-the-corner. On Tuesday, the mid-and small-cap indexes underperformed the markets after a long time, which is an indication that the markets could be close to topping out,” said G Chokkalingam, founder and chief investment officer at Equinomics Research.

ALSO READ: Nykaa IPO: first profitable unicorn, led by women, to tap public markets

At the macro level, analysts expect the markets now to enter into a consolidation phase after a good run over the past few months. Corporate earnings, they say, will continue to recover as the economy opens up for business after the second wave of the Covid pandemic earlier this year.

“The Nifty now trades at 12-month forward P/E of 20.5x and P/B of 3x, above long-period average (LPA). Thus, the risk-reward is relatively less lucrative in the near term,” cautions Gautam Duggad, head of institutional research at Motilal Oswal Securities.

IPOs that doubled



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel
Key stories on business-standard.com are available to premium subscribers only.

Already a premium subscriber?

Subscribe to get an across device (Website, Mobile Web, Iphone, Ipad, and Android Phone applications) access to Premium content, Breaking News alerts, Industry Newsletters, Stock and Corporate news alerts, access to Archives and a lot more.

Read More on

IPO

IPO ACTIVITY

HAPPIEST MINDS

ROUTE MOBILE LIMITED

INDIAMART IPO

IRCTC

AFFLE INDIA

MARKETS

NEWS


Most Read

Markets

Companies

Opinion

Latest News

Todays Paper

News you can use