This year, mainboard IPOs have given returns 10 times that of Sensex:
up to 29 times that of SMEs; 235 have made money on the day of listing since January
The historic bid of Rs 3.24 lakh crore for Bajaj Housing Finance’s IPO is not without reason. So far this year, the initial public offerings of big companies 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 returns 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 gave returns up to 442%, while the Sensex’s return was less than 15%.
Investors of 95% of the IPOs that have come since January have made huge profits on the day of listing. Dainik Bhaskar analyzed all 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 the 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 147% Exicom Tele-Systems has given the highest return of 147% among the mainboard IPOs so far this year. However, it is at the 7th position in terms of subscription (133 times). Investors who got shares in the IPO of Vibhor Steel Tubes, which was subscribed the highest at 320 times, got a return of 71.5%. In the top-10, the lowest return of 26% was given by Vraj Iron and Steel, whose IPO was subscribed 126 times.
| IPO | filled | Fast on listing day | Returns so far |
| Vibhor Steel Tubes | 320 times | 193% | 71% |
| Gala Precision Engineering | 201 times | 49% | 36% |
| Unicommerce E-Solutions | 168 times | 94% | 110% |
| BLS E-Services | 162 times | 175% | 72% |
| Orient Technologies | 155 times | 48% | 50% |
SMEs: K C Energy & Infra’s return is 442% Among the SME 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). The investors who were allotted shares in the IPO of HOAC Foods India, which was subscribed the most at 2,013 times, also got a return of 200%. Among the top-10, the investors of Cora Fine Diamond Jewellery suffered the maximum loss of 17%.
| IPO | filled | Fast on listing day | Returns so far |
| HOAC Foods India | 2013 fold | 191% | 200% |
| K C Energy And Infra | 1052 times | 343% | 442% |
| Medikamen Organics | 993 times | 325% | 92% |
| Maxposer | 987 times | 317% | 204% |
| Magenta Lifecare | 983 times | 35% | -11% |
It is better to book profits, the price of shares giving 10 times return in IPO can come down to 10%
Most of the IPOs that came this year have given excellent returns. What is the reason? This performance has nothing to do with the performance of the companies. There is a strong possibility that operators are pushing up these shares.
Should investors sitting on huge profits book profits? If you have got more returns than you expected, you should book profits. Do not wait for the profits to increase further, because the prices of such stocks can increase 10 times and can also come down to 10% from this level. We have seen before that 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.
