Mumbai: The initial public offers (IPO’s) that had hit the market in last two years have performed exceedingly well on the domestic bourses since their listing.While the number of IPO’s has remained low in 2013 and 2014, some of these companies have rewarded investors with over 150 per cent return till date. Though theseinitial public offers’ have benefited from the sharp rally in the secondary market, experts pointed out that the quality and pricing of these IPO’s had also played a major role in their performance.
There were three initial public offers’ that got listed in 2013 while another four companies got themselves listed in 2014.“The market regulator has tightened norms on IPO’s as a result of which only good quality initial public offers’ have come out. Merchant bankers and issuers have also become more careful while pricing the issue. Moreover, most of these companies are operating in niche product spaces.
Lastly, a buoyant secondary market has also helped in achieving gains over the issue price” said Pranav Haldea, managing director, Prime Database.For instance, the shares of V Mart Retail, which got listed on February 20, 2013 had gained 152.95 per cent from its issue price whereas Just Dial and Repco Home Finance that got listed in the same year have registered a gain of 185.28 per cent and 185.38 per cent respectively.
Similarly, Snowman Logistics, Wonderla Holidays and Sharda Chemicals, wh-ich were listed in 2014, have given a return of 109.04 per cent, 161.36 per cent and 67.12 per cent respectively....