5 out of the 6 big IPOs (having a size of more than ₹10,000 crores) lost their glamor on the listing day and till today, they are eroding the investor’s capital. It is a clear sign that the big IPOs and their large sizes do not guarantee returns.
Here is the list of 6 big IPOs and their gains and losses coverage:
| Company Name | Listing Date | Issue Amount (in ₹ crores) | Subscription (in times) | Listing Day Gain/Loss | Return Till Date from IPO Price (as of Oct 14, 2024) |
|---|---|---|---|---|---|
| Life Insurance Corporation of India | May 17, 2022 | 20,557 | 2 | −7.8% | −1.9% |
| One 97 Communications Paytm | Nov 18, 2021 | 18,300 | 1 | −27.3% | −69.7% |
| SBI Cards and Payment Services | Mar 16, 2020 | 10,341 | 19 | −9.5% | −3.2% |
| General Insurance Corporation of India | Oct 25, 2017 | 11,257 | 1 | −4.6% | −20.4% |
| Coal India | Nov 4, 2010 | 15,199 | 15 | 39.7% | 96.1% |
| Reliance Power | Feb 11, 2008 | 10,123 | 70 | −17.2% | −82.8% |
LIC which is to date the largest IPO of India and has a size of ₹20,557 crores was subscribed 2 times. But, it had a listing day loss of 7.8% and to date (October 14, 2024), it is at the loss of returns of 1.9%. In the list of 6 big IPOs, only Coal India had given positive listing day gains of 39.7% and it is giving 96.1% returns over its issue price now.
Paytm had the largest listing day fall in this list of big IPO at 27.3%. Reliance Power, which was oversubscribed by 70 times, is in the maximum loss to date at the negative returns of 82.8%.
Out of the 10 big IPOs in India, 6 IPOs have generated negative returns on the listing day, while 7 of them had even posted negative returns a year after listing.
It is interesting to see how India’s big IPO players (including the latest Hyundai Motor India IPO) will fare from now on after listing. Just keep exploring, investing, and open demat account with SMC Global Securities now.
Reference:
https://economictimes.indiatimes.com/markets/stocks/news/5-out-of-6-mega-ipos-have-destroyed-wealth-whats-in-store-for-hyundai-ipo-investors/articleshow/114203299.cms
Author: All Content is verified by SMC Global Securities.
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