The historic bid of Rs 3.24 lakh crore for Bajaj Housing Finance’s IPO is not without reason. The initial public offerings of big companies that have come so far this year have given a return of 10 times that of the Sensex and the SMEs IPO has given a return of up to 29 times. So far in 2024, 59 IPOs of big companies (mainboard) have come. According to subscription, the top-10 of these gave a return of up to 147%. The minimum return was also 26%. 184 IPOs have come in the SMEs (small-medium companies) segment. Of these, the top-10 had a return of up to 442%, while that of the Sensex was less than 15%. Investors of 95% of the IPOs that have come since January have made huge profits on the day of listing itself. Dainik Bhaskar analyzed all the 246 IPOs of the mainboard and SME segment that have come so far this year. Its results are surprising. More than 95% of the companies were successful in giving returns to investors on the day of listing. Shares of only 4.5% of the companies closed on a decline on the day of listing. Mainboard: Exicom Tele-Systems’ return of 147%
Among the mainboard IPOs so far this year, Exicom Tele-Systems has had the highest return of 147%. However, it stood at the 7th position in terms of subscription (133 times). Investors who got shares in the IPO of Vibhor Steel Tube, which was subscribed the highest at 320 times, got a return of 71.5%. The lowest return of 26% in the top-10 was given by Vraj Iron & Steel, whose IPO was subscribed 126 times. SMEs: K C Energy & Infra’s return of 442%
Among the SMEs IPOs so far this year, K C Energy & Infra’s return was the highest at 442%. It also stood second in terms of subscription (1,052 times). Investors who were allotted shares in the IPO of HOAC Foods India, which was subscribed the most at 2,013 times, also got 200% return. In the top-10, the investors of Cora Fine Diamond Jewellery suffered the maximum loss of 17%. It is better to book profit, the prices of the shares giving 10 times return in IPO can also come down to 10%
The returns of most of the IPOs that came this year have been excellent. What is the reason?
This performance has nothing to do with the performance of the companies. There is a strong possibility that the operators are pushing up these shares. Should investors sitting on huge profits book profit?
If you have got more returns than expected, then you should book profit. Do not wait for the profit to increase further, because the prices of such shares can also be 10 times and from this level they can also come down to 10%. We have seen earlier also that the stocks which performed well, disappeared. So far in 2024, the Sensex has given only 15% return. What is the reason for the abnormal returns of IPOs?
IPOs were brought at very low valuations. The promoters and merchant bankers did not even know what the actual value of their IPO was. Their management is not capable enough to bring IPOs at accurate valuations.
