Mainboard IPO returns 10 times Sensex this year: up to 29 times SMEs; From January till now, 235 listing days have been earned

Bajaj Housing Finance's IPO at Rs. The historic bid of 3.24 lakh crore is not without reason. So far this year, IPOs of large companies have returned 10 times the Sensex and SMEs IPOs have returned 29 times. So far in 2024, there have been 59 IPOs of large companies (mainboard). In terms of subscription, the top-10 of these have returned up to 147%. The minimum return was also 26%. There were 184 IPOs in the SMEs (small-medium enterprises) segment. Among them, the top-10 returned up to 442%, while the Sensex returned less than 15%. Investors in 95% of IPOs made huge profits on the day of listing since January Bhaskar analyzed all 246 IPOs from the mainstream and SME segments so far this year. The results are startling. More than 95% of companies were successful in returning investors on the day of listing. Only 4.5% of companies' shares closed lower on the day of listing. Mainboard: Exicom Tele-Systems returns 147% Exicom Tele-Systems has given the highest return of 147% in a mainboard IPO so far this year. However, it ranks 7th in terms of subscriptions (133 times). Investors who got shares in the IPO of Vibhor Steel Tubes got a return of 71.5%. The lowest return in the top-10 at 26% was given by Vraj Iron & Steel, whose IPO was filled 126 times. SMEs: KC Energy & Infra returns 442% KC Energy & Infra has given the highest return of 442% among SME IPOs so far this year. It also ranks second in terms of subscriptions (1,052 times). Investors who were allotted shares in HOAC Foods India's IPO, which was filled a maximum of 2,013 times, also got a 200% return. Among the top-10 investors, Kora Fine Diamond Jewelery suffered the highest loss of 17%. Question 1. It is better to take profit, even stock prices that return 10 times in IPOs can fall to 10%, most IPOs have had excellent returns this year. What is the reason? Answer- This operation has nothing to do with the operation of the companies. There is strong suspicion that operators are offering these shares. Question 2. Should investors sitting on large profits book profits? Answer- You should book profit if you got more return than expected. Don't wait for the profit to increase further as the price of such stocks can rise by 10 times and fall by 10% from this level. We have also seen earlier that stocks that had performed well disappeared. Question 3. Sensex has returned only 15% so far in 2024. What causes extraordinary returns of IPOs? Answer- IPOs were launched at very low valuations. The promoters and merchant bankers didn't even know what the actual price of their IPO was. Their management is not competent enough to launch an IPO at the right valuation.

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