IPO Markets: These 5 IPOs Delivered Multibagger Returns for Samvat 2078 Investors

New Delhi: Similar to secondary market, Samvat 2078 was also a mixed bag for primary markets. A slew of IPOs, which were launched during the period, produced mixed returns for investors.

A handful of counters have emerged as multibaggers since their IPO, while others have emerged as wealth destroyers. However, the bias remained positive as 30 out of 41 IPOs increased investor wealth through October 20.

According to data from AceEquity, over 40 companies entered the main draw during Samvat 2078, raising over Rs 90,340 crore. This study excludes Patanjali Foods FPO, formerly known as Ruchi Soya.

IPO markets have been volatile for some time due to mixed global and domestic signals, which has resulted in tighter liquidity across the globe.

Through Oct. 20, through Oct. 20, through Oct. 20, through Oct. 20, through Oct. 20 yielded returns greater than 100%, and seven others were up 50-95%. That said, about half a dozen stocks lost more than a third of their value.

Among the winners was the top performing debutant of Samvat 2078. Adani Group’s FMCG arm rose around 203% from its issue price of Rs 230 to reach Rs 695.95 on Thursday, October 20. (147% up), Data Patterns (132% up), Venus Pipes & Tubes (up 123%) and Campus Activewear (up 117%) were other IPOs that became multibaggers in the current Samvat.

Go Fashion (India),

Metro Brands, Electronics Mart India, and have gained 55-95% since listing.

On the contrary,

and (Paytm) fell 70% and 67%, respectively. and fell about 55% each. , and dropped 30-40% each in their listing prices over the period.

The mix of IPOs included giant issues like Life Insurance Corporation of India (LIC), which launched the largest ever issue in the Indian market worth Rs 20,550 crore, followed by the issuance of Rs 18,300 crore from One97 Communications.

(Rs 6,400 crore) and FB Fintech (Rs 5,952 crore) were among other mega issues. Interestingly, all the issues, which raise more than Rs 5,000 crore, generated negative returns for investors.

Aastha Jain, senior research analyst at Hem Securities, said internet companies or new era service aggregators have come through and delivered strong listings thanks to high liquidity, despite loss-making companies.

“While interest rates have taken liquidity out of markets, fundamentals and valuations have once again prevailed,” she added. “The trend will remain the same in the short term.”

All new era internet companies including Paytm, Fino Payments Bank, FB Fintech, Delhivery and FSN E-commerce (Nykaa) generated negative returns for investors.

However, smaller issues including Sigachi Industries, HP Adhesives, Hariom Pipe Industries, Venus Pipes & Tubes and Veranda Learning whose issue size ranged between Rs 125-200 crore generated returns of 50-150% for investors.

Jain said the small size of the show and the small ticket size of the price range are currently the key factors driving the market. “Primary markets will remain buoyant in the upcoming Samvat under normal market circumstances.”

Going forward, the market will focus on companies with stable cash flow, stronger balance sheets and earnings visibility, said Abhishek Jain of

.

The IPO market would focus on companies with India as the manufacturing theme for Samvat 2079, he said, adding that consumption can also be seen as another theme to play out in the IPO markets in stock Exchange. Bharat FIH, JSW Cement, NSE and NCDEX are key issues for Samvat 2079, he said.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)

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