In the past few years, the Indian stock market has witnessed a few successful and failed IPOs. The rising IPOs have brought both high-return opportunities and losses to investors. This is why new investors consider it to be a highly risky form of investment.
Fluctuations in IPO share price in the first weeks of listing are quite common. While there are Initial public offerings in the history of the Indian stock market where investors made significant returns, there are such IPOs that they wipe out investors’ money. Studying IPO case studies is the best way to strategize a successful IPO investing plan.
Examples of Successful IPO Case Studies in India
With the Sensex peeping to an all-time high after overcoming COVID-19, there has been a high rise in IPOs. Here are the case studies of some of the most recent IPO listings:
1. Adani Wilmar
The Adani Wilmar IPO tops the list of all companies when it comes to IPO performance in the Indian share markets today. The shares of Adani Wilmar Limited closed at ₹265 on the day it got listed to the IPO issue price of ₹230. The listing day return was ₹35.20. Adani Wilmar’s stocks reached a high of ₹878 after the listing but are currently trading at ₹363 as of 17 August 2024.
Adani Wilmar is a joint venture of Wilmar International Ltd Singapore and Adani Group with equal partnership. Adani Wilmar forayed into the food products sector in 2013 and is among the fastest-growing companies in the business.
Key business segments of the company are edible oil, fast-moving consumer goods, packaged foods, and industry products. It has a well diversified product portfolio where many of its products have attained the highest market share in their respective segments.
2. Venus Pipes and Tubes
The IPO was opened in May 2022 with a price band of ₹310-326 per share. It was a positive listing and began trading at ₹335 on BSE, while its issue price was at ₹326. The company’s stock has had a dream run since its listing on the exchange.
The current stock price of Venus Pipes and Tubes is ₹2,041.90 on BSE as of 17 August 2024. The company mainly deals in the production and export of stainless steel pipes and tubes. The company is likely to benefit from the anti-dumping duty imposed by the government on imports of seamless stainless steel tubes and pipes from China.
3. Hariom Pipes Industries
The IPO was launched in March 2022 with a fixed price of ₹144 to ₹153 per equity share, and its current share price is ₹716 on BSE as of 17 August 2024, which means the stock has delivered a multi-bagger return to its allottees.
The company produces steel MS pipes for construction, scaffolding, hot rolled strips, steel MS billets, and sponge iron. It has a strong distribution channel in South India. The company’s superior performance, the expectation of higher demand for steel, and the anti-dumping duty imposed by the government have boosted the share price of the company.
4. DroneAcharya Aerial Innovations
The IPO was launched at the price band of ₹52-54 per equity share in the month of December 2022. As of 17 August 2024, the share price of DroneArchya Aerial Innovations is ₹130. It has touched the upper circuit on all six trading sessions since its debut on 20 December 2022.
Today’s Droneacharya Aerial share price is about 155% higher than its upper price band of ₹54 per share. The Company is a Directorate General of Civil Aviation (DGCA) authorized Remote Pilot Training Organisation (RPTO).
Conclusion
Consistent and sound IPO performers are those with high growth and demand factors. These are the companies that possess no significant outflow but have the capability of increasing their revenue. In many IPOs, Indian organizations have been reporting zero profits, which has dampened the investors’ confidence, and consequently, some of the IPO share prices have been dumped.
Every IPO investment should be carried out only after understanding dematerialization meaning, benefits and strategy. Whether it is an IPO of the best ethanol stocks or any other industry, monitor both industry and market trends before investing in the IPO.
