A handful of counters turned out to be multibaggers since their listing on the bourses, whereas others emerged as wealth destroyers. However, the bias remained positive as 30 IPOs out of 41 increased investor wealth till October 20.
According to the data from AceEquity, more than 40 companies were listed on the main board during Samvat 2078, raising more than Rs 90,340 crore. This study excludes the FPO from Patanjali Foods, erstwhile known as Ruchi Soya.
IPO markets have been volatile for quite some time on the back of mixed global and domestic cues, which led to liquidity tightening across the world.
As many as five companies delivered more than 100% returns in Samvat 2078 till October 20, with another seven rising between 50-95%. That said, about half a dozen stocks lost more than one-third of their value.
Among the gainers, was the best-performing debutant in Samvat 2078. The Adani Group’s FMCG arm rallied about 203% over its issue price of Rs 230 to hit Rs 695.95 on Thursday, October 20. (147% up), Data Patterns (132) % up), Venus Pipes & Tubes (123% up) and Campus Activewear (117% up) were other IPOs which turned multibaggers in the ongoing Samvat.
Go Fashion (India),
, Metro Brands, Electronics Mart India, and gained between 55-95% since their listing.
On the contrary,
and (Paytm) plunged 70% and 67%, respectively. and dropped about 55% each. , and dropped 30-40% each from their listing prices during the period.
The mix of IPOs included behemoth issues like Life Insurance Corporation of India (LIC), which floated the largest-ever issue in the Indian market worth Rs 20,550 crore, followed by One97 Communications’ Rs 18,300 crore issue.
(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 delivered negative returns to investors.
Aastha Jain, Senior Research Analyst, Hem Securities said the new-age internet companies or service aggregators sailed through and delivered strong listing pops on the back of high liquidity, despite the loss-making businesses.
“As interest rates pulled out liquidity from the markets, fundamentals and valuations prevailed once again,” she added. “The trend will continue to remain the same for the near term.”
All the new-age internet companies, including Paytm, Fino Payments Bank, FB Fintech, Delhivery and FSN E-commerce (Nykaa) delivered negative returns to the 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, delivered 50-150% returns to investors.
Jain said that small issue size and small ticket size of the price band are currently the key factors guiding the market. “Primary markets will remain buoyant in the coming Samvat under the normal circumstances in the market.”
Going ahead, the market would focus on companies with stable cash flows, stronger balance sheets and visibility of earnings, said Abhishek Jain of
IPO market would be focusing on companies with India as a manufacturing theme for Samvat 2079, he said, adding that consumption can also be looked at as another theme to play on IPO markets. Bharat FIH, JSW cement, NSE, and NCDEX are key issues for Samvat 2079, he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)