Mumbai, Oct 16 (IANS) Nineteen out of the top 30 IPOs by size have failed to generate excess returns when compared to the returns from the CNX500 index, according to a report.
Capitalmind Financial Services, a wealth management firm, said in a report that 8 of the 30 have delivered negative returns, including Reliance Power, the most high-profile, which was also the largest at the time.
Only two of the top 10 have generated returns greater than the CNX500.
Coal India just about doubled in price over 14 years but does much better with its dividends. Even then, it just about matches the index.
"Zomato is the only top 10 IPO that has delivered meaningful excess returns. The other big winners out of the top 30 are Hindustan Aeronautics, Indian Railway Finance Corp, Sona BLW Precision Forgings and ICICI Lombard," said in a report.
The report further said that five out of the top 10 IPOs are from the last two years. Most of them have done well, including Bajaj Housing Finance, Bharti Hexacom, and Brainbees (First Cry), thanks in no small measure to a favourable market.
Capitalmind Financial Services' Investments & Head of Research Anoop Vijaykumar said: “Overall, big IPOs have struggled to deliver excess returns for the investors. IPOs abound in bull markets since they get optimistic valuations and most late-stage bull markets are characterised by a few large IPOs which tend to be valued optimistically."
"When the earnings growth to justify those valuations does not materialise combined with a mean-reversion in broader markets, high-profile IPOs end up delivering lower than expected returns,” he added.
By industry, financials have traditionally dominated public market fund-raising. Even in 2024, 27 per cent of funds raised were by financials. However, consumer companies (cyclical and non-cyclical) have emerged as the largest industry category in 2024, thus far. Consumer companies have contributed 34 per cent of the funds raised in 2024, followed by financials at 27 per cent and industrials at 14 per cent.
--IANS
avs/vd
You may also like
'Never give up': UAE women share stories of strength, healing
Kashi residents express gratitude to PM Modi for approval of new rail-road bridge
Zakir Naik a fugitive, plea should not be entertained: Maha govt to SC
Erik ten Hag left sweating ahead of Man Utd vs Brentford as injury list hits double figures
Nagas need to be united, live in peace for development of Nagaland: CM Neiphiu Rio
If there's a party in the evening, follow these tips for a rose-like glowing face
Tipping Point fans slam player for worst game play ever after blowing huge lead
Striker who missed AFCON over gender row nominated for BBC Women's Footballer of the Year
West Bengal: Woman's half-charred body found in Nadia, one held
Seven of family killed in car accident in Telangana's Medak; CM expresses grief
Spain reach Nations League quarters, Ronaldo's Portugal held by Scotland
Is Sabrina Carpenter cursing sports teams? Why the singer seems to be a bad luck charm!
Daniel Levy agrees to meeting as Tottenham fans given hope on 'misguided' ticket price plan
National Lottery winner urged to come forward with winning £3.6million Set for Life ticket
Odisha Police busts fake call centre in Bhubaneswar, six held
Prince William issues defiant message to critics as he's quizzed in new ITV documentary
Renukaswamy murder case: Actor Darshan submits plea in Karnataka HC seeking bail
Keir Starmer has given huge clue on what fishing rights he'd give away to EU
Brexit fishing betrayal is even worse than it already seems for this simple reason
Thomas Tuchel's awkward meeting with England star as German is announced