Most newly listed firms deliver smart returns to investors
Four out of the five firms which got listed this year are trading above their issue price, giving smart returns of up to two-times to investors, helped by positive broader market sentiment.
So far this year, five companies have launched their IPOs. Out of this, four have yielded positive returns against the price at which they had issued shares to investors, an analysis of the performance of the newly-listed firms showed.
The BSE 30-share Sensex has gained nearly 11 per cent so far this year, with the index touching its 52-week high of 30,007.48 on April 5.
Among the gainers, shares of Avenue Supermarts, operator of retail chain D-Mart, have soared 2.62 times against the issue price of Rs 299.
Shankara Building Products is trading 64.68 per cent higher than its IPO price of Rs 460.
In case of BSE, Asia's oldest stock exchange, its shares have zoomed 27.54 per cent from the IPO price of Rs 806.
Similarly, Music Broadcast is up by 7.64 per cent against the issue price of Rs 333.
In contrast, CL Educate saw its shares trading 15.19 per cent lower against the issue price of Rs 502. Last year, 26 companies collectively raised over Rs 26,000 crore through IPOs, making it the best one for public offers since 2010.