It took years to build, but these founders amassed a fortune of Rs 37,716 crore within a year of the IPO.

In an era where post-listing volatility keeps investors on edge, a new study by Practus shows that owner-managed companies are leading the way in value creation.

In FY23 and FY24, 169 companies listed on the NSE (NSE) after successful IPOs raised Rs. 94,204 crores increased massively. Of these, an overwhelming 99.82% (167 firms) were owner-managed enterprises – businesses run by their founder-promoters.

Although much of this IPO received a strong response, the real kill lies in what happened after the IPO. In just one year after the listing, the promoters’ holdings were valued at Rs. 37,716 crore was a huge increase – an average per promoter of Rs. 223 crore showing growth in assets.

For founders who spent decades building these companies, this post-IPO performance stands as a testament to their resilience.

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Interestingly, despite unlocking some of their assets through an offer for sale at the time of the IPO, the commitment of these founders did not waver as their ownership stake fell from 82% to 63% after the public debut.

For these 169 companies, the road to IPO was a long and tedious one. On average, it took founders 24 years to prepare their businesses for public debut. Even at the IPO stage, the promoters have raised Rs. 26,827 crore in cash, while retaining a stake that is now valued at Rs. 4.8 lakh crores.

Among industries, the manufacturing sector has emerged as the largest wealth generator, contributing Rs. 1.58 lakh crore, which is 31.22% of the total assets. 1.17 lakh crore (23.1%) followed closely by the healthcare and pharmaceuticals sector, while banking and financial services accounted for Rs. 50,507 crore (9.96%) has been added.

Practus’ research shows that investor confidence is strongly correlated with founder-driven businesses. The promoters’ long-term vision, unwavering commitment, and hands-on approach to operations inspire confidence – not just at the time of the IPO but beyond. Investors are seen benefiting from the stable leadership and sustainable growth that these companies bring.