Sad state of pandemic IPOs | Value Research We look at the winners and losers of the pandemic IPOs
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Sad state of pandemic IPOs

We look at the winners and losers of the pandemic IPOs

The world of pandemic IPOs is erratic, to say the least. In the last two years, the market has witnessed a century of IPOs, 101 to be exact.

But, what should have been a sign of the economy bouncing back turned out to be gloom for investors instead. About 46 per cent of these IPOs have given negative post-listing returns. While there are 12 companies that have given more than 100 per cent returns, eight companies have fallen more than 50 per cent from their list price.

In this story, we look at the top five winners and losers from the hit-or-miss universe of pandemic IPOs and provide some insights.

The winners

The losers

Insights

101 IPOs from 2020 to 2022 (till date).

55 companies have posted positive post-listing returns.

46 companies have posted negative post-listing returns.

44 IPOs, subscribed more than 30 times, have given median returns of 2.5 per cent. 22 of them, have posted negative post-listing returns.

32 IPOs, subscribed less than 5 times, have given median returns of 18.5 per cent. 15 of them have posted more than 20 per cent returns.

31 companies have posted negative post-listing returns of more than 20 per cent.

22 companies had an issue size of more than 2,000 crore. 13 of them have posted negative post-listing returns, with median returns of -13.7 per cent.

21 companies have recorded a listing gain of more than 20 per cent, but post-listing gains have been negative.

18 companies have recorded listing and post-listing gains of more than 20 per cent.

15 companies have given negative listing and post-listing returns.

12 companies have given post-listing returns of more than 100 per cent.

8 companies have recorded a post-listing of more than 50 per cent.

All data as of October 26, 2022

Another interesting thing is that all IPOs of more than Rs 5,000 crore issue size, except SBI Cards, have given negative post-listing returns.

While it may seem like we are flexing our data processing muscle, we aim to highlight how risky IPO investing is. The median post-listing returns for all these IPOs is a mere 7.1 per cent, far less than what an index can offer. While some IPOs may indeed offer potential listing gains, investing in them is closer to trading than fundamental analysis.

So what should you do? Do you devote hours of your day scouring through excel sheet after excel sheet?

What you need is our Value Research Stock Advisor service. Let us do the number crunching for you while you sit back and enjoy. Our motto is simple - identify good long-term bets available at a reasonable price and have a ready list of stocks for our subscribers to start right away. Why give your weekends to the calculator when we are here for you?


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