The year 2020 saw 24 IPOs. Through these, companies raised more than Rs 22,000 crore. This figure itself becomes very important in this year of the Kovid epidemic. India has taken fast and quick steps to fight Kovid, which is now being seen as an advantage. Companies also took very effective steps on cost-cutting. There are signs of recovery in the economy from the increase in GST collection and other micro indicators.
The market has witnessed a very strong recovery from the 3-year lows of March 2020. Due to the strong influence of liquidity, the Sensex and the Nifty have risen above their crucial registries. All the new shares, which came through the IPO that came in the market last year, are trading well with their issue price.
In 2020, 14 mainboard companies with an issue size of more than Rs 100 crore are trading with positive returns. 13 of these companies are offering double-digit returns. Let us know that these 14 companies are listed in the market in the year 2020.
Of the 13 companies offering double-digit returns, 4 are companies that have given more than double the issue price to their investors. This includes Route Mobile, Burger King, Rossari Biotech, and Happiest Minds.
Apart from this, there are 9 companies which have given 10–50 per cent returns so far from their issue price. Among these are Angel Broking, Mindspace, SBI Cards and Gland Pharma.
From the valuation perspective, most of the IPOs were offered at higher valuations. Experts say that they are still looking attractive in view of the growth expectations and they are advised to buy on the decline.
What should be the strategy of investors now
Market experts say that investors who invest for a short period can now book their profits in stocks that have run more than twice. But keep in mind that these stocks are likely to go up further. In such a situation, long-term investors can remain in them.
Jitendra Upadhyay of Bonanza Portfolio says that Route Mobile, Burger King, Rossari Biotech, and Happiest Minds have huge growth potential right now. In the coming years, their rerating can be seen, given which long-term investors are advised to stay in it.