Best and Worst Performing IPOs in India in 2018

Best and Worst Performing IPOs 2018 - 17 IPOs analysedBest and Worst Performing IPOs in India in 2018


Investors have been crazy of IPOs in the first half of 2018. However, the second half of 2018 was a nightmare for IPO investors.  Many IPOs that came during last 5-6 months has not left any gains for investors. In 2018, there were almost 17 companies that came for IPO in India. Some IPOs gave as high as 65% listing gains on day-1. Which are the best Performing IPOs in India in 2018? Which are the Worst Performing IPOs in 2018 where investors lost their hard earned money? What lessons we can learn from these best and worst Performing IPOs in India so that we can invest wisely in 2019?

Also Read: 10 Best Mutual Funds to invest in 2019 in India

How we did this analysis on Best and Worst Performing IPOs in India in 2018?


1) We have taken all IPOs that came for subscription from 1-Jan-18 to till date (25th November, 2018).

2) We have considered the issue price, listing price and arrived listing gains.

3) We have considered the issue price, current market price (CMP) to arrive at current gains (till date).

Best and Worst Performing IPOs in India in 2018


We would split this into two parts. Part-A would talk about best and worst performing IPOs based on listing gains. Part-B would talk about best and worst performing IPOs based on current market price vs the issue price.

A) Best and Worst Performing IPOs in India in 2018 based on listing gains


1) There were almost 22 companies in India that came for IPOs in 2018.

2) There are 11 IPOs that have performed well and gave listing gains of 1% to 65%. Apollo Microsystems (65%), HDFC AMC (65%), Amber Enterprises (44%), Bandhan Bank (27%), Lemontree (16%), RITES (15%), Galaxy Surfact (14%) etc., created wealth for investors.

3) There were 2 IPOs that were neutral on listing day. Midhani and HG Infra Engineering could not have any listing gains.

4) There were 9 IPOs that listing below issue price. Investors lost 1% to 14% in these 9 IPOs with such investments. These include ICICI Securities (14%), Ircon Intl (12%), Garden Reach (11%), Bharat Dynamics (9%), TCNS (8%), Hindustan Aeronautics (7%) etc.,

B) Best and Worst Performing IPOs in India in 2018 based on current market price


1) There are 8 IPOs that have been performing well and gave 6% to 47% returns till now. These include RITES (47%), Fine Organis (45%), HDFC AMC (38%), Midhani (32%), Newgen Software (31%), Bandhan Bank (21%) etc., These could create wealth for investors.

2) There were 14 IPOs that have been performing badly and current trading below issue price. Investors lost 2% to 51% in these 11 IPOs from till date. These include Apollo Systems (51%), ICICI Securities (47%), Indostar Capital (38%), Hindustan Aeronautics (34%) etc., that have eroded investors’ wealth.

3) Among all the IPOs, Apollo Microsystems had surprised investors in both ways. It gained 65% on listing day and gave 51% negative returns till date compared to issue price. If you would have brought on listing day, you would have lost 70% of your investment.

Best and Worst Performing IPOs 2018 - Based on gains till date-revised

What lessons can we learn from these best and worst Performing IPOs in India so that we can invest wisely in 2019?


Here are some interesting facts which you can use to invest in IPOs in 2019.

1) QIB investments in IPO happens ahead of IPO subscription for retail and general investors. Means they go first and then the retailer investors date would open. If you observe, wherever there is high buying by QIB, there are huge listing gains. Wherever there is low QIB, listing gains are thin or negative listing gains. If you want to invest in IPOs in 2019 and looking for listing gains, check this aspect. If QIBs are investing heavily, just go for that to get listing gains.

2) Wherever there is huge subscription from QIB, HNI and from Retail segment, though there are listing gains, these gains are NOT holding later on. Means, if there is too much over subscribed, just go ahead and book listing gains and don’t wait for medium term as such gains are vanishing at later point of time. Means you should treat them as short term investments or long term investments, but not for medium term.

3) If you are looking to invest in stocks for long term, just go for quality IPOs and don’t look for short term fluctuations. 

Best and Worst Performing IPOs 2018 - QIB high subscription - Listing gains, but no gains later

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Suresh

Best and Worst Performing IPOs in India in 2018

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