IPO investment: How is the performance of IPO’s in last 6 months?

IPO investment-What is the performance of IPO’s in last 6 monthsIPO investment: How is the performance of IPO’s in last 6 months?

IPO investments have performed well in the last 6 months. In the last 6 months, there were 11 IPO’s which came to public and almost all of them are performing well in terms of returns. In this article we would discuss about IPO investments and how is the performance of IPO’s in the last 6 months (Jan-2013 to Jun-2013).

IPO Investment performance in last 6 months

Investors always look for investment options which give quick returns. Investment in stocks in secondary market has always been high risk. The other option of direct investment in stocks is through IPO. Initial Public Offerings(IPO) are generally helping investors in choosing a stock for investment and gaining in short term through listing gains, medium term and for long term.

Also read: Best Investment plans for high risk investors

I personally invested in Repco Home Finance Ltd and the IPO is 35% up as of today. I recommended a few other IPO’s which are also doing well.

Some of the IPO’s have made 50%+ returns where I indicated NOT to buy. Investors are also investing in companies which has not being doing well or financials are not attractive.  Sentiment of listing gains is working well with them.

Highlights of IPO Investment performance from Jan-13 to Jun-13.

1)   There were 11 companies which came for IPO from Jan-2013 to Jun-2013.

2)   IPO’s have yielded good returns to the investors. They are trading at a price which is higher than the issue price.

3)   1 IPO OneSource Tech has yielded loss to the investors. This is trading at below the issue price (loss of 54%).

4)   Assuming that an investor has invested minimum investment required for the IPO, your investment value would have been Rs 11.14 lakhs and you would have made profit of Rs 4.33 lakhs in the last 6 months. This indicates that 39% returns in 6 months period.

5)   Though there are several brokerage recommendations not to invest in specific IPO’s, investors have been investing in IPO’s to earn profits from listing gains. Thought this strategy might be good for listing gains, you cannot hold IPO’s which are not attractive for short to medium term. Classic example is Onesource Tech which lost 54% from its issue price.

Also read: Performance of IPO's issued in 2012

Summary of IPO investment performance along with minimum investment and profit made thereon.

IPO investment-What is the performance of IPO’s in last 6 months(Jan-13-Jun-13)

Conclusion: IPO investments have been giving good returns in the last 18 months. However one should not forget about IPO investment performance for 2011 where investors had suffered heavy loss by investing in IPO’s. Investing in good IPO’s would always benefit in long run even in case of negative market sentiments.

Readers, what are your experiences in IPO investments?

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IPO investment: What is the performance of IPO’s in last 6 months


  • Ramesh

    Hi suresh,
    Please give me suggestion that i can invest 3000-5000 per month which one give higher returns with less risk… Please suggest me.. I dont have an idea on trade and sip..

  • rony

    Dear suresh,

        If any upcomng IPO can you please inform me your views and recommendatons 

    • Rony, as and when there is an IPO, you would seen an artilce on this blog. You can do e-mail subscription so that it would come to your mail box straight.

  • Kishore

    Hi Suresh,

    This is nice analysis. I want to understand bit more on IPO's. If you have time could you please write an article on IPO? If already posted please give me the link.

    Where we have to check for the coming IPO's ? and how to invest in IPO? Please let us know the process.


    Thank you

    Kishore B

    • Hi Kishore, No specific artilce on IPO. However as and when there is an IPO issue, I have written articles. You can refer category “IPO investments” on the right hand side bar. You would see all our recommendations from Jan-13 to May-13. Currently there are no open IPO. In case of any new IPO, we would analyse and provide our views.

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