IPO mart got a big boost
Out of 27 companies that had tapped the IPO market in 2016, 19 companies are still trading with hefty premiums to their issue price.
Mumbai: Amidst high bout of volatility in the secondary market, the primary market has turned out be a major money spinner for investors as more than 70 per cent of IPOs listed in 2016 has generated impressive returns for shareholders.
Out of 27 companies that had tapped the IPO market in 2016, 19 companies are still trading with hefty premiums to their issue price. While three IPOs have rewarded investors with over 100 per cent return till date, another nine companies have given a return in the range of 20-80 per cent.
While the IPO from Infibeam Incorporation listed in April is the biggest wealth maximiser this year with a whopping gain of over 172 per cent, public offers from Advanced Enzymes and Quess Corp also exceeded street expectation by gaining 119 per cent and 104.02 per cent respectively. “The stock prices would ultimately reflect the fundamentals of the company and the sectors in which they operate. Some of these companies have reported impressive quarterly numbers, which is getting reflected in their stock performance,” said Pranav Haldea, managing director, PRIME Database.