What is IPO Investment? How IPOs Performed during Covid19 ?

IPO Updates 15 May 2021 1:40:PM

ipo-min ipo-min

IPO, The term IPO stands for Initial public offerings. It is a proper mechanism by which, privately held companies become publically traded by offering shares to the public for the first time. IPOs or Initial Public Offerings are a process through which companies raise capital from retail and institutional investors by going public and listed on the secondary exchanges. The company which offers the share to the public is known as the “issuer”.

What is IPO? :-

Initial public offering (IPO) can be described as the process in which, by selling a portion of its stake to investors, a private company or organization can become public. In general, an IPO is introduced to infuse the business with new equity capital, to promote easy trading of current assets, to collect capital for the future, or to monetize existing stakeholders' investments. The company gets its name listed on the stock exchange via the IPO. A number of reasons are there for a company to go public. But the most common reason is a company wants to raise capital and expand its operations.

What is IPO cycle and how it works? :

Till now we have covered basic parts like what is  IPO?  Now moving forward we will talk about what is an IPO cycle? So, the IPO cycle runs like, the company first seeks approval through SEBI (Securities and Exchange Board of India) and files a document known as the prospectus, which includes the details of the public offer and the details of the business. Post which, the investors can apply in multiples of the prescribed lot size to apply for the offer.

How have IPOs performed in the recent past?

In the last calendar year, already 12 companies have raised nearly Rs 25,000 crore through IPOs this year so far compared with Rs 12,363 crore raised by 16 companies in 2019. COVID-19 produced accelerated opportunities in sectors like pharma, chemicals, and IT in India, for which many companies required growth capital to fund their expansion plans. Some promoters also took note of the liquidity flush and sought an exit through primary markets.

The IPOs in the past few months of the year have actually performed notably well and have provided handsome returns to subscribers.

Company Name

Listing Date

Issue Price (Rs)

Listing Day - Close Price (Rs)

Listing Day Gain / Loss (%)

Current Price

Gain / Loss (%) as per CMP

Route Mobile Ltd

21-Sep-2020

350

651.10

86.0%

975.45

178.5%

Happiest Minds Technologies Ltd

17-Sep-2020

166

371.00

123.5%

318.50

91.9%

Rossari Biotech Ltd

23-Jul-2020

425

742.35

74.7%

787.10

85.0%

Gland Pharma Limited

20-Nov-2020

 1500

                                               1,820.45

21.4%

2,089.05

39.5%

Likhitha Infrastructure Ltd

15-Oct-2020

120

136.60

13.8%

157.20

30.9%

Mazagon Dock Shipbuilders Limited

12-Oct-2020

145

173.00

19.3%

182.20

25.6%

Chemcon Speciality Chemicals Limited

1-Oct-2020

340

584.80

72.0%

 416.55

22.5%

IPO Performance During Covid:-

The average market return on the above public issues is ~67%, along with attractive listing gain opportunities.

The companies that have been listed in the prior months have however been from COVID-led opportunities. However, in the coming months, as business normalizes, manufacturing resumes with the PMI at record high levels, vaccine progressions, and high foreign fund flow, we expect a host of businesses from various industries to access primary markets and IPOs to continue to perform well.

We recommend investors to look out for the following IPOs in the coming months as attractive listing gains as well as investment opportunities.

Upcoming IPOs in the coming month:

Well, we have seen everything about IPOs, What is IPO, The IPO cycle, and What was the performance of some of the IPOs during the Covid-19.  Now its time to see what are upcoming IPOs to invest in. and remember one thing holding on will give you an opportunity to be a part of companies future success and expansion.

The following companies are there in our Upcoming IPO Calendar -

  • Suryoday Small Finance Bank
  • ESAF Small Finance Bank
  • Nazara Technologies
  • RailTel
  • Kalyan Jewellers
  • Antony Waste Management

So, that was it for our today's blog on What is IPO investment and Upcoming IPOs. You can invest in these IPOs too as it is one of the most popular terms in Investment.

You are just one step away from making your first investment with GEPL Capital, the one-stop investment avenue - so Click here and make your first trade.

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