From mint · Dhanya Nagasundaram · · 1m 30s
IPO Returns Decoded: Premier Energies, Tata Tech Among Winners
Experts say IPO listing gains don't reflect long-term returns for investors.
In brief
Experts say IPO listing gains don't reflect long-term returns for investors. Premier Energies and Tata Technologies remain above their IPO issue prices despite listing corrections, showing short-term gains may not indicate long-term investor success. Originally reported by mint.
IPO returns decoded
Recent IPOs show a wide gap between listing prices and returns from IPO prices.
Seven stocks above issue price
All 10 stocks have corrected since listing but seven remain above their ipo issue prices.
Premier Energies leads returns
Premier Energies rose 105.6% from its issue price of ₹450 to ₹925.
Tempsens and Sigachi strong
Tempsens Instruments gained 96.13% from its issue price of ₹300 and Sigachi Industries advanced 76.75% from ₹16.
Tata Technologies gains
Tata Technologies gained 49% from its ipo price of ₹500 despite falling from listing price.
Kotak Institutional Equities view
Kotak says small-cap stocks show strong investor enthusiasm but may not deliver on expectations.
Mohit Gulati's insight
Listing-day gains reflect speculative demand rather than intrinsic value for investors.
Three stocks below issue price
Vibhor Steel Tubes down 30.8% from issue price and Unicommerce eSolutions declined 21% from issue price.
What investors should watch
Investors should assess earnings growth, cash flows, valuations and fundamentals before making decisions.
Kotak's broader caution
Kotak warns elevated enthusiasm for small-cap stocks may not be justified by long-term performance.
The one thing
Premier Energies and Tata Technologies remain above their IPO issue prices despite listing corrections, showing short-term gains may not indicate long-term investor success.
