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9 months, 17 IPOs: Here’s a report card on the performance of these stocks.
Sep 09 2017
The Indian market has witnessed a good run so far, with the Sensex and Nifty returning 19-21 percent.
Experts cite increased liquidity in the market, driven by support from domestic investors through mutual funds, political stability, and hopes of better monsoon and the resultant economic performance as triggers for the rally as well.
Increased liquidity, driven by mammoth rush to mutual funds, was seen post demonetization. In fact, the trend seems to be getting healthier.
In August, inflows into equity mutual funds rose to a whopping Rs 20,000 crore—the highest-ever recorded by the industry. The number actually reflected good appetite by investors to invest into financial assets such as equity markets.
The year also saw several companies hitting the primary market in a bid to raise funds via initial public offerings (IPOs). Collectively, more than Rs 14,100 crore has been raised by major companies and more importantly, the wealth has largely increased with successful listings of these companies.
Going forward, several companies are in the pipeline to go public in the month of September. Other companies that will be launching their public issues include names like online matchmaking company Bharat Matrimony, real estate services provider Capacit’e Infraprojects along with ICICI Lombard, among others.
“We expect a lot of IPOs lined up from sectors like insurance, hospitality, and some other financials. Considering that returns on recent IPOs have been considerably better than it was four years ago, we believe investors are likely making decent returns going forward also,” Abhimanyu Sofat, Vice President, Research at IIFL had told Moneycontrol earlier this month.
A look at data from major listings this year reveals an interesting trend. For the uninitiated, the process of making the securities officially quoted on the notified stock exchange for the trade is known as listing.
To begin with, around 17 companies saw their companies being listed this year so far (as of September 8, 2017).
Interestingly, around 4 companies (almost 25 percent) have actually doubled investors’ wealth between their listing date and till the time this story was published—Avenue Supermarts, Shankara Build Products, Salasar Techno and CDSL are the ones in this list.
In fact, Apex Frozen Foods, Cochin Shipyard, PSP Projects and Music Broadcast actually were trading around their 52-week high mark. Having said that, there were a few laggards as well, who have fallen from their listing and 52-week peaks. Eris Lifesciences, GTPL Hathway, S Chand and CL Educate, among others are a part of this pack.