The strong gains recorded in this quarter so far were led by Behari Lal Engineering, whose shares ended 76% higher on listing day.
It was followed by Indo MIM, which soared nearly 53% on debut day. Earlier this month, Shiprocket made a strong market debut, ending its first trading day around 48% higher.
Overall, 18 out of 22 stocks whose IPOs opened between July and August delivered positive returns on listing day, implying around 82% success rate for their investors.
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Q1 comparatively saw a lacklustre primary market performance, with listing day gains ranging from a negative 17% to a positive 29%. Advit Jewels and CMR Green Technologies recorded the sharpest gains among the pack, pushing the average listing day gains to 7.5%.
Also read | Rs 21,000 crore IPO rush in August highest in one year. Will September break all records?
What lies ahead?
Successful listing of an IPO has various factors like better business model, future growth potential, return ratios and of course the valuations at which the IPOs are priced, said Narendra Solanki, Head of Fundamental Research on Investment Services at Anand Rathi Shares and Stock Brokers.
The recent strong response in IPOs as well as decent listing day performance were driven by a mix of high potential growth prospects, sectoral tailwinds, niche products and decent valuations on the back of high revenue visibility, according to the analyst.
Coming to the year ahead, Solanki thinks sentiments are much better now than what it was at the start of the year. With the much-awaited IPOs of NSE and Jio lined up, the analyst believes that the positive momentum in India’s primary market is likely to continue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)