IPO: 50 percent return on IPO that came less than last year, these companies were in profit

IPO Watch: Despite the decline in the sale of shares through initial public offerings (IPOs) this year, these issues have given an average return of 50 per cent while the BSE Sensex has risen only 1.6 per cent during this period.

Prepared report on the analysis of stock market and IPO
An analysis related to the performance of the stock market said that the amount raised from the IPO has come down significantly this year. According to this, it has been successful in raising an amount of Rs 38,155 crore from 51 IPOs that have come so far in 2022. In the same period last year, Rs 64,768 crore was raised from 55 IPOs. Bank of Baroda economist Dipanvita Majumdar has prepared this analysis report.

There were only 8 large IPOs this year
This year only eight IPOs have been sizable. Of these, the highest Rs 20,500 crore was raised from the Life Insurance Corporation of India-Life Insurance Corporation of India (LIC) IPO. At the same time, IPOs of 33 companies raised more than Rs 1,000 crore last year.

Strong rise in Sensex last year
According to this report, the IPO had given 74 per cent returns till September 2021, while the Sensex had gained 20 per cent by that time. But out of those IPOs with a size of more than Rs 1,000 crore, the shares of 16 companies are currently being sold at low prices. In the entire year of 2021, companies had raised Rs 1,21,680 crore from the stock market. But during this period, between April and October, the Sensex also jumped from 40,000 points to close to 60,000 points.

Strong volatility in the stock market this year
In comparison, there has been a lot of volatility in the stock market in the year 2022 and it is trading only in the range of 50,000 to 60,000 points. So far this year, the number of companies giving negative returns has been 40 per cent while 45 per cent companies have given more than 20 per cent returns.

These companies that brought IPO had the highest losses
One97 Communications (Paytm) is among the top losers with a loss of 67 per cent from its issue price. LIC’s share price has also fallen 31 percent from the issue price, while the share of Zomato has fallen 20.7 percent.

These companies who brought the issue got the benefit
On the other hand, the share of Adani Wilmar has climbed up to 205.6 per cent from the issue price. On the other hand, Sona Precision (81.6 per cent), Patanjali Foods (106 per cent) and PowerGrid (38 per cent) have managed to take the lead.

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