IPO returns: These days in the stock market IPOS Is full of Every day some IPO is either launched in the market and is listening on its stock exchanges. If you too IPO If we keep an eye on the market, then we today for you Have brought an interesting but necessary information. If you too IPO If we keep an eye on the market, then we have brought an interesting but necessary information for you today. Moneycontrol has done a total of 218 IPOs in the last 5 years i.e. from FY 2020 to FY 2025. The information received from this study is quite surprising.
Studies show that the IPOs with whom big private equity firms, venture capital firms or big investors are associated with them, without the investment of private equity firms, ie only the companies running on the strength of the promoter. IPO Investors have given average better returns. Whether it is in Listing Day or the next one year performance after listing. Both Surat have been performing more good for companies running on the strength of the promoter.
Moneycontrol has studied a total of 218 IPOs in the last 5 financial year. Only those IPOs have been included in this, whose listing has been at least 12 months or more. PE firms investing company is considered to be a 10 % or more share of PE firms, venture capital investors or pre-IPO investors.
in IPO The investigation of PE firms shows that the IPO invested by PE firms has given a average return of 21.48 per cent on its listing. At the same time, companies with investment without PE firms gave a return of 32.86 percent on an average Is.
This distance increases even more in the next 12 months after the listing. The average return of companies investing PE-firms in the next 12 months of listing has been 50.24. At the same time, the average return of companies running on the basis of a promoter without a PE has been 75.32% during this period.
If we remove the average figure and only talk about positive returns, then companies with no-PE firms have won. About 76% of IPOs investing without PE firms have made investors profit on their listing days. At the same time, this figure is only 71 % for companies investing PE-firms. Over a period of 12 months, about 74 percent of an IPO with no-PE firms has given positive. At the same time, this figure is 70 percent for the IPO investing PE firms.
PE-Investments of firms IPO Why weak return?
Here the question becomes that the last PE-Why are the returns of firms invested IPOs weak? Market experts give many reasons behind this. Pe Investors usually invest at a very low valuation, long before its listing in any company. Until these companies IPO Brings, by then their valuation is very high. Also, the possibilities related to the growth story of these companies have already been involved in their valuation.
In many cases IPO In the price, not only the company’s fundamentals, but Pe Investors’ exit premiums “also appear to be connected, which reduces the scope for returns for new investors. Its In addition, IPO After Pe The possibility of selling investors’ stake can also weaken the market sentiments.
every IPO Is a different story
However, despite all this, market experts say that everyone IPO That has its own story. In such a situation, it is not right to trust the figures only in view of the IPO. Wealthmills Securities Equity strategy director Kranti Bathini says, “It is true that many PE-Investment companies have performed weak after listing, but this is not a rule. The performance of each stock is different. “
They say that investors to any IPO Should be assessed on the basis of its business model, valuation and fundamentals, not just on the basis that in the company Pe Whether or not money is invested. But they also say that investors must see that IPO After that Pe The fund is maintaining a stake in the company or coming out completely.
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