Caution is the IPO Bazard in the Land

After a lull in the last three months, IPO bound companies have gradually floated early offers fats among the current pullback rally in the stock market. Given the popularity of IPOs among retail investors, it is meaningful to check the stock performance of the companies listed in the past year. 101 Mainboard companies ETIG analysis that has collected money through the initial public offer (IPO) since January 2024 shows that most sample companies cannot improve their listing benefits. In the sample, two out of every three companies currently trade below their list prices.

However, the benefits listed are those that often draw retail investors in the primary market, showing the analysis that only a handful of IPOs offers significant returns on debut. In the sample, about 16% of the companies benefited 50% or more lists while about 9% of companies earned 75% or more returns on debut. In addition, 17 out of 101 companies increased the list by up to 10% while 20 companies failed to get compensation.

Although it seems encouraging that 57% of companies traded above their initial offer fur prices, only half of them are able to receive 10% or more returns, which reflects that the rest of the companies have either achieved or generated compensation. Of the total sample, only 35% of the companies have gained more than 25% of the offer fur price.

In the sample, Jyoti CNC Five companies, including Automation, KRN Heat Exchanger and Refrigeration, Bharti Hexacom, Premier Energy and Interch Building Solutions, have received more than 100% returns so far than the cost of offer fur.

Analysis does not consider the period for which these companies have been traded on bores. That means companies that have been listed for a short period of time, such as one week or a month can show a different trend in stock returns.