With the October 3, 2024 stock market crash due to geopolitical uncertainty and FII selling, the IPO still remains strong and listed at gains on that day. KRH Heat Exchanger was listed at a 118% premium despite the market falling by more than 1,000 points on October 3, 2024. The two SME IPOs, TechEra Engineering, and Thinking Hats Entertainment Solutions each gained 60% and 29.5%, on the market-day fall.
23 IPOs were launched between January 2019 and September 2024 on the day when the market crashed by 1,000 points. Around 19 were able to survive the market storm and listed at gains. As per the study, 3 IPOs launched at a premium of 50% to 100%, while 4 have launched at a discount on the market crash.
On September 6, 2024, and September 30, 2024, the market crashed by more than 1,000 points. The mainboard IPOs: Manba Finance was listed at a premium of 31% and Bazaar Style Retail gained a mere 3%. The 3 SME players on the other hand have given returns between 25% and 40%.
It is to be noted that these IPOs may get listed at a premium in the market crash due to oversubscription, a higher grey market premium, and positive investor sentiment. But eventually, it gets toned in a few days or weeks and aligns with the market trend.
So, whenever the market crashes it is important to keep an eye on your IPO allotments and analyze their mood according to the trend. Open the demat account with SMC Global Securities to invest in IPOs and get timely updates.
Reference
https://www.livemint.com/market/stock-market-news/ipo-invincibles-beyond-krn-more-ipos-that-defied-the-market-crash-11727952459288.html
Author: All Content is verified by SMC Global Securities.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account