2023 saw a flurry of IPOs, with 60 mainboard IPOs launched, 46% of which took place between October and December. Given the bull market during this period, companies thought it was a good time to take advantage of these opportunities by coming up with an IPO. Did you know that if you had invested in all these IPOs last year, you would have earned an average return of 45% by the end of December 2023? In this article: Mainboard IPO performance in the last year of 2023.
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2013 IPO Performance Highlights (January 2023 to December 2023)
- A total of 60 companies were listed from January 1, 2023 to December 31, 2023. Of these, 28 companies (46%) conducted their IPOs between October and December.
- Performance on listing day:
- Profit: 49 IPOs (82%)
- No profit: 3 IPOs (5%)
- Negative returns: 8 IPOs (13%)
- If you invest in an IPO and sell at the end of the listing day, you can earn an average return of 27.9% (closing price on the listing day minus the issue price).
- If you invested in all these IPOs and held until today, you would have earned an average return of 45% (December 23 closing price minus issue price).
Top 10 IPOs that created wealth on listing day
Tata Tech led the pack with a staggering 162.9% gain on its listing day. His IPOs of the top 10 companies achieved a total average return of 86.8% on the day of listing. The following snapshot details the performance of his top 10 IPOs that generated wealth for investors on the day of listing.
| Company Name | Listing date | IPO price | Closing price on listing day | Profit/(loss) on list day | Closing price on December 29, 2023 | Profit / (Loss) until December 31, 2023 |
|---|---|---|---|---|---|---|
| Tata Technologies Ltd. | November 30, 2023 | 500 | 1314.25 | 162.9% | 1180.45 | 136.1% |
| ideaForge Technology Ltd | July 7, 2023 | 672 | 1295.5 | 92.8% | 830.55 | 23.6% |
| Utkarsh Small Finance Bank Ltd. | July 21, 2023 | twenty five | 47.94 | 91.8% | 53.87 | 115.5% |
| Ireda Co., Ltd. | November 29, 23 | 32 | 59.99 | 87.5% | 102.7 | 220.9% |
| MOTISONS JEWELERS LIMITED. | December 26, 2023 | 55 | 101.18 | 84.0% | 95.89 | 74.4% |
| Netweb Technologies India Limited | July 27, 2023 | 500 | 910.5 | 82.1% | 1187.3 | 137.5% |
| Gandhar Oil Refinery (India) Ltd. | November 30, 2023 | 169 | 301.5 | 78.4% | 272.85 | 61.5% |
| DOMS Industries Co., Ltd. | December 20, 2023 | 790 | 1330.85 | 68.5% | 1251.3 | 58.4% |
| SBFC Finance Co., Ltd. | August 16, 23 | 57 | 92.21 | 61.8% | 89.35 | 56.8% |
| Cyient DLM Ltd | July 10, 2023 | 265 | 420.75 | 58.8% | 675.05 | 154.7% |
10 worst IPO companies that damaged/did not create assets on listing day
Udaysivakumar Infra led the list with a -10% loss on its listing day, contributing to the top 10 IPOs generating a combined average negative return of 5%. The following snapshot outlines the performance details of the top 10 IPOs that eroded wealth and delivered poor returns to investors on the day of listing.
| Company Name | Listing date | IPO price | Closing price on listing day | Profit/(loss) on list day | Closing price on December 29, 2023 | Profit / (Loss) until December 31, 2023 |
|---|---|---|---|---|---|---|
| Uday Shivakumar Infrastructure Ltd. | April 3, 2023 | 35 | 31.5 | -10.0% | 38.48 | 9.9% |
| Avalon Technologies Co., Ltd. | April 18, 23 | 436 | 397.45 | -8.8% | 551.85 | 26.6% |
| Mutrut Microfin Co., Ltd. | December 26, 2023 | 291 | 266.2 | -8.5% | 251.2 | -13.7% |
| Suraj Estate Developers Limited | December 26, 2023 | 360 | 334.3 | -7.1% | 330.6 | -8.2% |
| IRM Energy Co., Ltd. | October 26, 2023 | 505 | 472.95 | -6.4% | 537.55 | 6.5% |
| Updater Service Co., Ltd. | October 4, 2023 | 300 | 283.85 | -5.4% | 336.8 | 12.3% |
| Yatra Online Co., Ltd. | September 28, 23 | 142 | 135.95 | -4.3% | 144.65 | 1.9% |
| Zaggle Prepaid Ocean Service Ltd | September 22, 23 | 164 | 158.3 | -3.5% | 222.85 | 35.9% |
| HMA Agro Industries Co., Ltd. | July 4, 2023 | 585 | 584.75 | 0.0% | 84 | -85.6% |
| Yatarsu Hospital | August 7, 2023 | 300 | 300 | 0.0% | 376.9 | 25.6% |
Top 10 IPOs that have made investors rich by holding to date
IREDA has posted an impressive return of 220.9% to date, leading the way among the top 10 IPOs and delivering an average return of 133% to investors who held the IPO to date. The following snapshot details the performance of his top 10 IPOs that have generated wealth for investors held to date.
| Company Name | Listing date | IPO price | Closing price on listing day | Profit/(loss) on list day | Closing price on December 29, 2023 | Profit / (Loss) until December 31, 2023 |
|---|---|---|---|---|---|---|
| Ireda Co., Ltd. | November 29, 23 | 32 | 59.99 | 87.5% | 102.7 | 220.9% |
| Cyient DLM Ltd | July 10, 2023 | 265 | 420.75 | 58.8% | 675.05 | 154.7% |
| Netweb Technologies India Limited | July 27, 2023 | 500 | 910.5 | 82.1% | 1187.3 | 137.5% |
| Tata Technologies Ltd. | November 30, 2023 | 500 | 1314.25 | 162.9% | 1180.45 | 136.1% |
| Signature Global (India) Ltd | September 27, 23 | 385 | 458.4 | 19.1% | 877.1 | 127.8% |
| Senco Gold Co., Ltd. | July 14, 2023 | 317 | 404.95 | 27.7% | 696.4 | 119.7% |
| Vishnu Prakash R Punguria Co., Ltd. | September 5, 2023 | 99 | 145.93 | 47.4% | 215.9 | 118.1% |
| Utkarsh Small Finance Bank Ltd. | July 21, 2023 | twenty five | 47.94 | 91.8% | 53.87 | 115.5% |
| EMS Co., Ltd. | 21-9-23 | 211 | 279.75 | 32.6% | 424.65 | 101.3% |
| Concord Biotech Co., Ltd. | August 18, 23 | 741 | 941.85 | 27.1% | 1470.05 | 98.4% |
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10 Worst IPOs that eroded/didn’t create assets held to date
HMA Agro Industries has lost 85.6% year to date, and the top 10 IPOs would wipe out an average gain of 10% if held to date. The following snapshot outlines the performance details of the top 10 he IPOs that have eroded wealth to investors who held to date or have provided poor returns to investors.
| Company Name | Listing date | IPO price | Closing price on listing day | Profit/(loss) on list day | Closing price on December 29, 2023 | Profit / (Loss)) till 29-12-23 |
|---|---|---|---|---|---|---|
| HMA Agro Industries Co., Ltd. | July 4, 2023 | 585 | 584.75 | 0.0% | 84 | -85.6% |
| Mutrut Microfin Co., Ltd. | December 26, 2023 | 291 | 266.2 | -8.5% | 251.2 | -13.7% |
| Suraj Estate Developers Limited | December 26, 2023 | 360 | 334.3 | -7.1% | 330.6 | -8.2% |
| Radiant Cash Management | January 4, 2023 | 94 | 104.7 | 11.4% | 89.02 | -5.3% |
| FEDBANK FINANCIAL SERVICES LIMITED. | November 30, 2023 | 140 | 140 | 0.0% | 136.3 | -2.6% |
| TVS Supply Chain Solutions Co., Ltd. | August 23, 2023 | 197 | 200.95 | 2.0% | 198.2 | 0.6% |
| Yatra Online Co., Ltd. | September 28, 23 | 142 | 135.95 | -4.3% | 144.65 | 1.9% |
| ASK Automotive Co., Ltd. | November 15, 23 | 282 | 310.2 | 10.0% | 290.7 | 3.1% |
| Credo Brands Marketing Co., Ltd. | December 27, 2023 | 280 | 312.5 | 11.6% | 292.4 | 4.4% |
| Blue Jet Healthcare Co., Ltd. | November 1, 2023 | 346 | 395.85 | 14.4% | 368.05 | 6.4% |
In summary, investing in IPOs involves high risks but led to significant wealth creation for investors in 2023. This can be largely attributed to the bullishness in the stock market over the past few months. This bull market may or may not continue into 2024.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. I have been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
