IPO markets are hot; may cooler heads prevail
3 years ago

IPO markets are hot; may cooler heads prevail

Live Mint  

From the ecstatic highs of Nykaa to the despondent depths of Paytm, Indian flippers of initial public offerings have been on a roller-coaster ride through the crowded IPO amusement park squatting on Dalal Street for the past few months. This is compounded further by an information asymmetry that underlies IPO usage, with better-informed insiders and early backers often looking to offload their stakes upon less informed public market investors. During the 2007 cycle, education stocks like Educomp and Everonn had attracted the fancy of IPO investors, who showered them with listing gains of 123% and 241% respectively. For an IPO trader trying to harvest listing gains, these numbers imply a Sharpe ratio of 0.49, which is far lower than that of an average exchange-traded fund tracking the NSE Nifty. Despite such clear evidence against IPO over-exuberance from various stock markets, investors periodically succumb to the euphoria of a “hot" primary market and burn their fingers time and again.

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History of this topic

IPO Scorecard: Over 300 stocks debut on Dalal Street in 2024, nearly 70% trade above issue prices
Trending News
4 weeks ago

IPO Scorecard: Over 300 stocks debut on Dalal Street in 2024, nearly 70% trade above issue prices

Live Mint  

The year 2024 has emerged as a stellar one for the Indian primary market, witnessing an unprecedented surge in activity. Notably, 133 SME IPOs achieved subscription rates exceeding 100 times, with 23 surpassing an extraordinary 500 times in retail subscriptions, underscoring the massive retail participation in this segment. Reflecting the strong performance of SMEs, 156 IPOs are currently trading above …

Reality check: Why IPO listings are not making you rich any more
1 month ago

Reality check: Why IPO listings are not making you rich any more

India Today  

The IPO bonanza that defined early 2024 on Dalal Street seems to be losing its shine. NTPC Green Energy's ambitious Rs 10,000 crore IPO's lukewarm response in the grey market signals growing investor fatigue. Gaurav Garg, Lemonn Markets Desk, points to the bigger picture: "Indian IPOs have had a notable year, raising approximately Rs 1.2 lakh crore, capitalising on favourable …

IPO frenzy fizzling out: What’s behind low subscription rates, tepid listings?
1 month ago

IPO frenzy fizzling out: What’s behind low subscription rates, tepid listings?

Live Mint  

IPO buzz fizzling out: Despite the ongoing excitement surrounding initial public offerings, a sense of fatigue appears to be creeping into the IPO market recently. So far in November, Afcons Infrastructure Ltd, Sagility India Ltd, Swiggy Ltd, ACME Solar Holdings Ltd, and Niva Bupa Health Insurance Company Ltd have struggled to achieve full subscriptions during the bidding period, with all …

SME IPO Frenzy: Opportunity or bubble? 2024 sees record ₹8,200 crore raised by SME firms
1 month, 1 week ago

SME IPO Frenzy: Opportunity or bubble? 2024 sees record ₹8,200 crore raised by SME firms

Live Mint  

SME IPOs have become a central focus for investors looking for quick returns, with small and medium-sized enterprises increasingly tapping the public markets. This robust performance has caught the attention of high-net-worth investors, who are optimistic about short-term returns but they may be overestimating the stability of these gains, according to Trivesh D. The Evolution of SME IPOs Trivesh D …

India accounted for 25% of global IPOs in first half of 2024
3 months, 1 week ago

India accounted for 25% of global IPOs in first half of 2024

Hindustan Times  

The Initial Public Offering market in India has turned out to be an outlier in itself and is bucking the subdued global public issue trends. A report released by wealth management firm Angel One Wealth noted that while the global IPO market peaked in 2021, India has been the outlier with public listings in the last year because of strong …

IPO market in India: Most investors chase listing lottery, sell shares within a week, says Sebi
3 months, 3 weeks ago

IPO market in India: Most investors chase listing lottery, sell shares within a week, says Sebi

Firstpost  

According to Sebi, 54 per cent of IPO shares, excluding those held by anchor investors, were sold within a week of listing. Retail investors also exhibited a strong tendency to sell quickly, with 42.7 per cent of the shares allotted to them being sold within a week Most investors pouring money into the primary market in India are looking to …

Most IPO shares sold in 7 days, 70% within a year; top investors from Gujarat
3 months, 3 weeks ago

Most IPO shares sold in 7 days, 70% within a year; top investors from Gujarat

Hindustan Times  

A majority of investors who receive an allotment of shares in an initial public offering sell their shares within a week, a study conducted by the Securities and Exchange Board of India on 144 IPOs listed between April 2021 and December 2023 showed. A Sebi study on 144 IPOs from April 2021 to December 2023 found most investors sell shares …

The Role Of The Best Trading Platforms In Navigating Upcoming IPOs In India
5 months, 2 weeks ago

The Role Of The Best Trading Platforms In Navigating Upcoming IPOs In India

ABP News  

The Indian IPO market is overheating as firms are back seeking to raise money through public tapping for the first time after years of silence. Although upcoming initial public offers offer opportunities for investors While upcoming IPOs provide opportunities for investors, there are following significant risks and challenges to consider when investing in upcoming IPO in India: Market Volatility If …

75% IPOs show positive returns in past year: Does IPO investing generate alpha?
1 year ago

75% IPOs show positive returns in past year: Does IPO investing generate alpha?

Live Mint  

The recent rally in the stock market saw many companies coming up with their IPOs. The past 3 years broken into 1-year buckets Source: Ace Equity, Equentis Research IPOs from different sectors Source: Ace Equity, Equentis Research In the past 3 years, 143 mainboard IPOs have come for listing. Returns from issue price and listing price Source: Ace Equity, Equentis …

IPO fundraising slumps by 26% in H1 FY24 to ₹26,300 crore, shows data
1 year, 2 months ago

IPO fundraising slumps by 26% in H1 FY24 to ₹26,300 crore, shows data

Live Mint  

In the first half of 2023–24, 31 Indian corporates raised ₹26,300 crore through main board IPOs, a drop of 26% from the ₹35,456 crore raised by 14 IPOs during the same time in 2022–23, according to Prime Database Group's report. In the first half of 2022–2023, total public equity fundraising surged by 69% to ₹73,747 crore from ₹43,694 crore, according …

Driven By SME IPOs, India Leads Global IPO Chart With 80 Listings Till June 2023: Report
1 year, 5 months ago

Driven By SME IPOs, India Leads Global IPO Chart With 80 Listings Till June 2023: Report

ABP News  

Defying global trends, the stock exchanges of India have topped global rankings in terms of the number of initial public offers. As per a report by Ernst and Young, the BSE and the NSE have jointly listed 80 firms till June 2023, which is 33 per cent higher than the 60 IPOs floated a year back. "Defying the global downward …

IPO pipeline in India seen active in 2023 on smaller deals
2 years ago

IPO pipeline in India seen active in 2023 on smaller deals

Live Mint  

India is expected to see a steady flow of small-to-mid-sized deals next year as investors grow wary about large listings after the disastrous performance of some major technology initial public offerings. India’s markets regulator currently has about two dozen IPO applications including SoftBank Group-backed Oyo Hotels and Tata Play Ltd. The overall fundraising via IPOs next year “will be a …

'High Momentum': India Records 22 IPOs Worth Over $2.5 Billion in January-March Period
3 years, 8 months ago

'High Momentum': India Records 22 IPOs Worth Over $2.5 Billion in January-March Period

News 18  

India witnessed 22 initial public offers worth over $2.5 billion in the first three months of 2021 amid “high momentum” in the country’s capital markets and the trend is likely to stay bullish in the current quarter also, according to a report. “With a robust Q1, IPO market likely to stay bullish in Q2 2021,” it said, adding that India …

Loaded investors and niche firms keep IPOs shining
4 years, 3 months ago

Loaded investors and niche firms keep IPOs shining

Live Mint  

Going by the listing-day euphoria of recent new share sales, the rest of fiscal 2021 promises to be a busy period for more IPO hopefuls with many more companies expected to go public over the next six months. Listing pop is the percentage gain that the stock witnesses on the day of listing as compared to the price at which …

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