Mumbai: Investors have raked in moolah from initial public offerings in the last one year with a majority of the companies clocking considerable gain in their stock prices during the debut trade.
Shareholders gained over $6.73 billion (about Rs 27,370 crore) on the first day of trade in shares they received in IPOs of 76 companies during the last 12 months, a PTI analysis shows.
Of the 76 companies, shares of as many as 45 firms ended with an average premium of 23% to the issue price on the first day of trade, while 31 firms fell below.
In terms of gain in market capitalisation, real estate developers DLF and Parsvnath led the way, followed by public sector Power Finance Corporation (PFC) and Aditya Birla Group’s Idea Cellular.
Closing up by 8% over the issue price of Rs 525, DLF added Rs 7,680 crore to its market cap at the end of first day’s trade. After just a few days of trading, DLF crossed the one lakh-crore market capitalisation mark, becoming the first realty firm to achieve the feat.
Another real estate major Parsvnath Developers added over Rs 4,100 crore to investors’ kitty after the scrip jumped 75.43% in its debut trade to Rs 526.30, well above its issue price of Rs 300.
PFC had a gain of over Rs 3,000 crore on its first day on the bourses with a 31% rise to close at Rs 111.55 over its issue price of Rs 85. Not far behind was Idea Cellular, which cornered Rs 2,780 crore from the market as its scrip rose 14%.
Other gainers were Sobha Developers and Tech Mahindra, which added a combined total of over Rs 4,674 crore to investors’ kitty.
However, the world’s fastest growing economy China left behind India in terms of wealth garnered by firm in the first day of listing.
Over the past 12 months, out of the 113 IPOs in China, the value of more than a third of firms on the A-share market doubled on their debut.
In terms of the average first-day gains, China has given 97% returns, translating into a combined gain of $24.4 billion.
In India, it was not a smooth ride for all investors who invested in IPOs over the past 12 months as some firms could not make positive returns in their debut trades.
The list of losers is led by oil exploration firm Cairn India, which saw an erosion of over Rs 4,000 crore in the investors’ wealth on its debut-day itself after the scrip fell 14% to Rs 137.5, below its issue price of Rs 160.
Among other disappointing debuts, Fortis Healthcare and House of Pearls Fashion witnessed a reduction of Rs 181 crore and Rs 157 crore respectively in market valuations.
In percentage terms, Broadcast Initiatives, which owns Hindi news channel Janmat, ended with a loss of about 42% over its issue price, followed by marble importer Oriental Trimex and fashion accessories maker Evinix Accessories, with a plunge of 38.65% and 38.54 % respectively.