Multibagger IPOs in 2023: With the new year 2024 only a fortnight away, it is critical to examine your portfolio and the type of return you have received from various asset investments. For an equity investor, 2023 might be a memorable year because all of its indices are at record highs and have been consistently touching new highs. A wise investor has plenty of opportunities to make money in either the secondary or primary markets.
In the primary market, 105 initial public offers (IPOs) were listed on the BSE, with 48 of them being main board IPOs. In terms of issue prices, 90 of the 105 IPOs are in the green zone. A close examination of the IPO performance in 2023 reveals that only 22 public offerings were listed at a discount. In the year 2023, seven public offerings were listed on the BSE at a discount to their issue price, but they recovered their losses and rose over their price band after listing. So, in terms of listing benefit, Indian IPOs had a 79% success rate in 2023.
Only three of the 48 listed public issues on the BSE and NSE in 2023 are now trading below their respective issue prices. Yatra Online, IRM Energy, and Radiant Cash Management Services are the three mainboard IPOs.
Multibillion-dollar IPOs in 2023
Here are the top five mainboard IPOs that produced a multibagger IPO for its allottees who remained invested in it to this day:
1] IREDA: On the NSE, shares of Indian Renewable Energy Dev Agency Ltd are currently trading at 108.30. This state-owned PSU's public offering was priced at $30-32 per equity share, and it was listed on the BSE and NSE at $50 each. As a result, IREDA shares gave a listing gain of more than 56% to its holders. If an allottee had stayed invested until now, the absolute value of their investment would have increased 3.40 times. This means that if an allottee had remained invested in IREDA shares until now, he or she would have profited 240 percent.
2] Tata Technologies: On Friday, shares of this recently listed Tata group firm closed at 1,243.30 a share on the NSE. Tata Technologies' public offering began in November 2023 at a price range of $475 to $500 per share. Tata Technologies' stock opened at 1.199.95 per share on the BSE and 1.200 per share on the NSE. So, the Tata Technologies IPO provided its lucky allottees a 140% listing gain. If an allottee had remained invested in this stock after it was listed, one's net income would have been roughly 149%.
3] Signatureglobal India: Shares of Signatureglobal India Limited closed at 795.20 on Friday on the NSE. This real estate company's public offering was made in September 2023 at a price range of $366 to $385 per share. Signatureglobal's share price started on the BSE at 445 per equity share and on the NSE at 444 per share, resulting in a 15.50% listing gain for allottees. However, Signatureglobal India shares surged after listing, reaching a record high of $816.60 per share in the post-listing rally. However, the real estate stock retraced after the profit booking trigger and is now offered at a price of 795.20 per equity, which is still 106% higher than its upper price band of 385 per equity share.
4] EMS: On Friday, shares of EMS Limited closed at 439 per equity share on the NSE. The EMs IPO took place in September 2023, with a price range of $200 to 211 per equity share. EMS share price opened on BSE and NSE at 281.55 and 282.05 correspondingly, delivering a 33.50% listing gain to its allottees. If an allottee had remained invested in the stock until today, his or her profit would have risen to over 100%.
5] Cyient DLM: On Friday, shares of Cyient DLM Limited closed at 653.55 per equity share on the NSE. Cyient DLM's initial public offering (IPO) was launched in June 2023 at a price range of $250 to $265 per equity share. Cyient DLM's share price opened at 401 and 403 on the BSE and NSE, respectively, delivering roughly 51.50 percent. If an allottee had stayed invested in this scrip despite the hefty listing premium, the return on investment would have more than doubled to about 145% in the post-listing period.
Apart from the aforementioned mainboard IPOs, the public offerings of Utkasrsh Small Finance Bank, Vishnu Prakash R Punglia, Netweb Technologies, and Senco Gold are the other four multibagger IPOs generated by the Indian primary market in 2023. JSW Infrastructure IPO also provided a great return to its allottees, returning roughly 95% of their investment.
