InvestorQ : How have recent IPOs been doing in the midst of the COVID-19 syndrome?
Lavanya Subramanian made post

How have recent IPOs been doing in the midst of the COVID-19 syndrome?

Answer
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ishika Banerjee answered.
5 months ago


Although the number of IPOs in the calendar year 2019 was few in number, there appears to have been a clear focus on quality. If the proof of the pudding lies in the heating, then the price performance is evidence of that. Now, Coronavirus may have destroyed substantial wealth on the indices but more than half of the IPOs in the last one year are still trading at a premium to their issue prices. Out of 15 IPOs that got listed in FY 2019-20, seven are trading above issue prices. While a couple of IPOs even retained their multibagger status, others managed to post decent returns even after the sharp correction in the markets overall. Two stocks viz. IRCTC and IndiaMART stand out in the IPO crowd. Even after the crash, IRCTC has yielded 320% return while IndiaMART still trades 130% above its listing price. Now, that is a real bumper performance post listing performance. It could be attributed partly to attractive pricing of the IPO and partly to their more de-risked business models.