New Delhi. It is generally believed that people distance themselves from the stock market during uncertainties like pandemics. Even today, a large section of investors adhere to this principle. However, in the last one year, Indian investors have started getting more adventurous with their investments, and they are becoming more positive about investing in the market due to the high returns from new companies. This has also been proved by the returns received in the IPO that came in the last one year and the manifold subscription of the issue. In the last one year, the stock of listed companies has seen an increase of more than 800 percent so far. At the same time, a recent issue has got 181 times subscription.
New companies making big money amid the pandemic
- The issue price of Happiest Minds, which was listed on 17 September 2020, was Rs 166. Currently the stock is close to the level of Rs 1475. That is, in less than a year, investors’ money in the stock has become 8.8 times.
- At the same time, the stock of Route Mobile, which came after this, has reached close to Rs 2100 against its issue price of 350 in a year. That is, the amount has increased almost 6 times.
- Angel Broking has increased from the issue price of Rs 306 to over Rs 1300 from October 2020, which means investment has seen more than 4 times increase.
- So far, the amount of investors in MTAR Tech, which was listed in 2021 itself, has increased 3 times.
- Returns have doubled in GR Infraprojects listed this week and investors’ money in clean science has increased by more than 90 percent.
- Within a year, the number of such companies listed has reached double digits where investors’ money has doubled.
Where did investors lose
It is not that the IPO market is in a wave where everyone is earning money. If we look at the statistics, in the eyes of the common people, people’s money has been immersed in many cheap looking issues. It is a matter of relief that the number of such stocks is only 10 percent, and even in this, experts are expecting a timely recovery. In this, Kalyan Jewelers, which was listed at the end of March, whose issue price was Rs 87, currently the stock is close to Rs 74. Also, IRFC, which was listed in January, is currently close to 23.5 against its issue price 26.
Public confidence increased on IPO
In view of the high returns, the general public is increasing confidence in the primary market. This is indicated by the response to the issue.
- In the recently launched Tattva Chintan, the retail share is filled 35 times, while the entire issue is subscribed 180 times
- Zomato’s retail share was filled more than 7 times, while the entire issue was subscribed 38 times
- The retail portion of the GR Infra project was filled more than 12 times,
- In 13 issues, the retail quota was filled more than 10 times, while in 5 issues this year, the retail quota was filled more than 25 times.
- The retail quota was filled 70 times in the highest grossing Happiest Mind in a year.
Why did the IPO market boom?
According to Vivek Mittal, Head of Research, VM Financial, several factors are responsible for the rally in the IPO market. At present, there has been increased liquidity in the system, whose effect is being seen in the subscription. At the same time, people’s expectations have also increased due to the excellent performance of the secondary market. The market has risen 100 percent since the pandemic shock. Sentiments have improved due to higher returns for several listed companies. Along with this, in view of the better movement of the market, many strong companies have entered the primary market and this list is continuously increasing. Due to which investment options have increased. At the same time, retail investors are withdrawing money with more confidence due to the impact of the second wave of Corona on the economy being less than the earlier fears.