73% IPOs trading above issue price as primary market shines in H1, four turn multibaggers

The fundraising of Rs 26,272 crore, however fell short of the previous two years likely due to the absence of mega issues. Investors‘ reception also remained positive with only one failed IPO.

Out of the 34 listings seen this year, four companies have turned multibaggers and are still trading at least 100% above the offer price.

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These are Jyoti CNC Automation, Exicom Telecom, TBO Tek and JNK India. Jyoti CNC saw a healthy response to the IPO with an oversubscription of 40 times and the stock is currently trading 300% over the offer price.

Meanwhile, the shares of Exicom Telecom, TBO Tek and JNK India are higher by 220%, 107% and 100%, respectively above the IPO price.

Other notable mentions in the list include, Bharti Hexacom — one of the marquee IPOs this year — whose shares are trading 96% higher than the offer price. BLS E Services and Let Travenues Technologies are other companies, which are doing well at the bourses with a gain of at least 60% from the issue price.

Of the listings this year, around 73% of companies are still above the IPO price, which is seen as pretty consistent given the market volatility this year due to various factors.

However, not every company had a pleasant walk at the exchanges. There are at least 8 companies that have suffered to keep up public scrutiny post the initial share sales, resulting in their share prices dropping below the issue price.

Shares of Capital Small Finance Bank lost the most this year at 26% below the offer price. Akme Fintrade, RK Swamy, SRM Contractors,
Entero Healthcare Solutions, Gopal Snacks, GPT Healthcare, and Popular Vehicles and Services are few other companies that haven’t had a good time and are trading down from their offer prices.

What should investors do?

The recently concluded elections are expected to invigorate the second half of FY24 market. Improved market sentiments and a potentially stable economic environment could entice companies to launch their public offerings.

Additionally, the success of several H1 FY24 listings could provide further momentum.

While specifics are subject to announcement, promising sectors for potential H2 FY24 IPOs include consumer staples and discretionary, healthcare, and technology.

A few potential IPOs that are keenly eyed by the market include that of MobiKwik, Aadhar Housing Finance, and Ola Electric Mobility.

“Overall, a more robust H2 FY24 for the IPO market is anticipated, with increased activity, potentially larger deals, and fresh listings across diverse sectors. As always, thorough analysis of individual company fundamentals and future prospects remains crucial before making any investment decisions,” said Atul Parakh, CEO of Bigul.

“There are many new age companies coming up in the IPO space. Indian markets, traditionally, have been packed with dull industries. In the IPO space, this isn’t the case. Hence, we expect this space to continue to do well,” said Sreeram Ramdas, Vice President at Green Portfolio.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)