Remember the early days of 2024? Initial Public Offerings (IPOs) were the talk of the town, with companies boasting sky-high subscriptions and listing-day fireworks. But what’s happening with the top five IPOs listed in the last five months? Have they lived up to the initial hype, or have their share prices come crashing back down to earth?
Let’s examine the performance of the top 5 IPOs that were oversubscribed during their issue and see how they’re faring today.
Top 5 IPOs Listed in 2024
1. Vibhor Steel Tubes Limited: A Strong Start, Now Facing Reality
Vibhor Steel Tubes started the party in February with a spectacular 181.5% jump on its listing day. The IPO was a hot commodity, garnering a staggering oversubscription of 320 times. This frenzy translated to a stellar debut on both the NSE and BSE. The share price on the NSE opened at ₹425, a whopping 181.5% premium over the issue price. Similarly, the BSE debut saw a price of ₹421 per share, reflecting a 178.81% increase. The listing day closed with an even more impressive gain of 195.5%.
Source: in. investing
That initial excitement, however, has waned considerably. The share price, currently at ₹248, is almost 50% lower than its listing day high. While the company boasts healthy sales figures, concerns linger about its cash flow and net profit, which haven’t shown significant growth. This disconnect between initial enthusiasm and current performance is a cautionary tale for investors who chase overheated IPOs.
2. BLS E-Services Limited: Earnings Power vs. High Valuation
BLS E-Services stands out for its rock-solid earnings growth. This strength was reflected in its listing day premium of 128.9%. However, the current share price ₹256.32 is significantly lower than its debut of ₹387.40. This decline could be attributed to the stock’s high P/E ratio of 53.1x. Investors might be betting on future earnings growth justifying the high valuation, but any faltering in that growth could lead to jitters among existing shareholders.
BLS E-Services’ IPO wasn’t just about impressive earnings; it also garnered the highest subscription rate among IPOs launched in that timeframe. The ₹311-crore initial public offering received a staggering 162.38 times subscription during the bidding window between January 30th and February 1st, 2024. This overwhelming investor interest fueled the strong listing day performance, but the current market sentiment seems to be tempering those initial highs.
3. Mukka Proteins: Falling Short of Expectations
Mukka Proteins’ listing day performance, with a 57% premium, was decent, but it fell short of pre-listing expectations. The company boasts impressive EPS and revenue growth figures, but its current share price of ₹34.09 hasn’t quite kept pace. This could be a sign that investors are taking a wait-and-see approach to see if Mukka Proteins can sustain its growth trajectory.
4. Exicom Tele-Systems: A Bright Spot in the Bunch
Exicom Tele-Systems, a frontrunner in the EV charging infrastructure and power management solutions space, has emerged as the star performer among these five IPOs. The company’s strong debut on the bourses reflected this leadership position. The IPO had a bright start, listing at ₹265, a commanding 87% premium over the issue price of ₹142. Exicom’s dominant market share of 60% in the EV charging segment fueled this impressive opening act.
With the global shift towards electric vehicles, investors are placing high bets on Exicom’s prospects. This confidence is reflected in the share price, which has climbed steadily since its listing day and currently sits at ₹312.05, a significant jump from its issue price.
5. Nova Agritech: Innovation Meets Market Correction
Nova Agritech launched its IPO in January 2024 with a price band of ₹39 to ₹41 per equity share. The public offering debuted on the BSE and NSE on January 31st, 2024, with a robust premium of 35%. This strong listing wasn’t just a one-day wonder.
Nova Agritech’s innovative products and successful marketing strategies continued to attract investor attention, pushing the stock price even higher. It reached an all-time high of ₹77.20 per share. However, the recent market correction has reduced the stock price to ₹64.29.
Despite this decline, Nova Agritech remains well above its IPO price, indicating continued investor interest in the company’s long-term prospects. The company’s ability to keep this momentum going will depend on its ability to translate innovative ideas into sustained financial growth.
The Takeaway
The stories of these top 5 IPOs highlight the importance of looking beyond the initial hype. While strong debuts are exciting, a company’s long-term performance hinges on its fundamentals and ability to deliver on its promises.
Investors should consider a company’s financial health, growth potential, and market positioning before making investment decisions. The stock market is dynamic, and yesterday’s hotshot IPO can quickly become tomorrow’s forgotten name. So, research, understand the risks involved, and invest wisely.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.