The analysis of mainboard initial public offerings (IPOs) in the Indian market between 2020 and 2022. Here are the key points:
- Number of Mainboard IPOs:
- During the period between 2020 and 2022, there were a total of 120 mainboard IPOs in the Indian market.
- Listing Performance:
- Out of these 120 IPOs, 86 listed at a premium, indicating that the market price upon listing was higher than the issue price.
- Conversely, 34 IPOs listed at a discount, suggesting that the market price upon listing was lower than the issue price.
- Analysis Period:
- The analysis appears to cover a three-year span, providing a comprehensive view of the IPO market dynamics during this timeframe.
- Issue Size Not Specified:
- The analysis has been conducted regardless of the issue size, implying that both large and small IPOs are included in the evaluation.
- Implications of Listing at a Discount:
- The acknowledgment that some IPOs listed at a discount does not imply negative long-term prospects, as subsequent performance and returns are also key considerations.
Initial public offerings (IPOs) in India, with over 30 companies going public in 2023 alone. The key points include:
- IPO Surge:
- India’s equity market has witnessed a significant increase in the number of IPOs, with more than 30 companies going public in the year 2023.
- Positive Returns for IPOs:
- The current trend stands out as a majority of these IPOs have listed at a premium, resulting in positive returns for shareholders.
- Listing at a Discount in the Past:
- Over the last three years, there have been instances where companies listed at a discount to their IPO price.
- Long-Term Investor Wealth:
- The analysis emphasizes that listing at a discount doesn’t necessarily translate to the long-term destruction of investor wealth.
- CNBC-TV18 Analysis:
- CNBC-TV18 is conducting an analysis to shed light on this trend, focusing on companies that listed at a discount but managed to deliver substantial returns over time.
The information suggests a nuanced approach to evaluating the performance of IPOs, acknowledging that short-term listing prices may not be indicative of long-term investor outcomes. It reflects a broader interest in understanding the dynamics of IPOs in the Indian market and the factors influencing investor returns. Investors often consider various aspects, including the company’s fundamentals, industry trends, and market conditions, when making decisions about participating in IPOs.