Hey everyone! IPO returns 2024 are proving to be a bit of a rollercoaster, aren't they? While the year has seen a record amount of funds raised through initial public offerings, a significant portion of those companies are currently trading below their issue prices. It's a sobering reminder that even the most promising startups can face headwinds in a volatile market. "The market is a battlefield," and in this case, it's a mixed bag.

This year's IPO returns are a reflection of the current market sentiment. Many companies that had stellar listing day gains are now trading at a discount to their issue price. This trend underscores the interconnectedness of the primary and secondary markets. The market correction that began in October has undeniably impacted the performance of IPOs. IPO returns 2024, unfortunately, aren't all sunshine and roses. Let's dive into the details.

(Note: This table is a sample and may not include all the companies mentioned in the article.)

This downturn is largely attributed to a confluence of factors. The benchmark indices have experienced significant downturns, and foreign portfolio investor (FPI) activity has reversed. Rising US 10-year bond yields have made US markets more attractive, leading to FPI withdrawals from Indian markets. This, combined with lofty valuations, has created a challenging environment for IPOs. "It's a tough time to be an investor," but understanding these factors is key. It's clear that the current market conditions are impacting IPO returns 2024. We'll need to see how things play out in the coming months.

2024 IPO Returns: A Mixed Bag with Many Companies Trading Below Issue Price

Hello, everyone! Today, we're diving into the world of Initial Public Offerings (IPOs) and their performance in 2024. It's a bit of a mixed bag, and we're seeing a significant trend: a considerable number of companies are trading below their issue price. This is a crucial point to consider when evaluating the overall health of the market.

Data reveals that over 40% of companies that went public this year are now trading below their original issue price. This follows a market correction that began in October, impacting even companies that initially saw strong listing day gains. Several prominent examples include ECOS India Mobility, Apeejay Surrendra Park Hotels, and Saraswati Saree Depot, among others.

Let's take a closer look at some specific examples. Companies like ECOS India Mobility, which saw a 33% surge on its debut, now trades just 1% below its issue price. Similarly, Apeejay Surrendra Park Hotels and Saraswati Saree Depot, with initial gains of over 31%, are now trading at a 4% and 25% discount, respectively. Other companies, such as Northern ARC Capital and Ola Electric Mobility, also experienced significant gains on their listing day, but now sit more than 10% below their original price.

This isn't just a recent phenomenon. The overall market sentiment has significantly shifted. The benchmark indices, the Nifty and Sensex, have experienced substantial downturns after reaching record highs in September. This market downturn, coupled with aggressive IPO pricing and a decline in listing gains, has led to a subdued post-listing performance, as noted by Apurva Sheth, Head of Market Perspectives & Research at SAMCO Securities.

Furthermore, the reversal of Foreign Portfolio Investor (FPI) activity since October has played a crucial role. Rising US 10-year bond yields have made US markets more attractive, prompting FPIs to withdraw from both primary and secondary markets in India. This, combined with lofty valuations in India, has contributed to the overall downturn. Experts point to this as a significant factor in the reduced IPO listing gains and Grey Market Premiums (GMPs).

Among the biggest losers, Popular Vehicles & Services, Capital Small Finance Bank, and Akme Fintrade India have experienced significant declines from their listing prices. This trend extends to other companies like Western Carriers, R K Swamy, and Deepak Builders & Engineers India, highlighting the broad nature of this market correction. Conversely, a few companies, such as Entero Healthcare, Vraj Iron & Steel, and Swiggy, are currently trading above their issue prices. However, the overall trend is clearly negative.

Prashanth Tapse, Sr VP Research – Research Analyst at Mehta Equities, believes investor fear is a key factor. The ongoing market turbulence is impacting investor confidence, leading to lower-than-expected demand and subscriptions for IPOs. This, in turn, is reflected in poor listing performances due to the downtrend in the secondary market.

Note: Data is indicative and may vary.

In conclusion, while 2024 has seen a substantial amount of capital raised through IPOs, the returns have been far from uniform. The market correction, coupled with investor sentiment and external factors, has significantly impacted the performance of many newly listed companies. Investors should exercise caution and conduct thorough research before investing in IPOs, especially in the current market climate.

IPO Performance and Market Sentiment: A Deep Dive

Greetings, investors! Today, we're diving deep into the performance of Initial Public Offerings (IPOs) in 2024. While the year has seen a significant amount of capital raised, the returns have been far from consistent. A concerning trend is emerging: a substantial number of companies are trading below their issue prices. Let's unpack this complex situation.

More than two dozen companies that debuted this year are now trading below their issue prices. This includes companies that initially saw impressive listing day gains. This downward trend began in October, coinciding with a broader market correction. Companies like ECOS India Mobility, Apeejay Surrendra Park Hotels, and Saraswati Saree Depot, among others, are examples of this phenomenon. Initially strong gains have turned into significant discounts to their original issue price. This is a significant shift from the initial excitement surrounding these listings.

Furthermore, several companies that had strong initial gains are now experiencing substantial declines. For instance, ECOS India Mobility, which saw a surge of over 33% on its debut, is now trading just 1% below its issue price. Similarly, Apeejay Surrendra Park Hotels and Saraswati Saree Depot, which had impressive debut gains, are now trading at a significant discount to their issue price. This is a stark reminder of the volatility in the market.

The performance of the primary market is directly linked to the secondary market. Following record highs in September 2024, benchmark indices like the Nifty and Sensex have experienced significant declines. This shift in sentiment, combined with aggressive IPO pricing and diminishing listing gains, has resulted in subdued post-listing performances. This is a crucial point to understand the current context.

The market downturn, particularly since October, has played a major role. Both the Sensex and Nifty have fallen by over 10% since then. Similarly, the BSE MidCap and BSE SmallCap indices have also seen substantial losses. This broader market decline has created a challenging environment for newly listed companies.

The withdrawal of Foreign Portfolio Investors (FPIs) since October has further exacerbated the situation. Rising US 10-year bond yields have made US markets more attractive, leading FPIs to pull back from both primary and secondary markets in India. This, coupled with perceived high valuations in India, has negatively impacted market sentiment and reduced IPO listing gains and Grey Market Premiums (GMPs). This is a critical factor influencing the current market environment.

Several companies have experienced substantial declines from their issue prices. Popular Vehicles & Services, for example, is now trading over 46% below its issue price. Other notable losers include Capital Small Finance Bank, Akme Fintrade India, Western Carriers, R K Swamy, Deepak Builders & Engineers India, and Saraswati Saree Depot. The sheer number of companies experiencing significant losses is a clear indication of the current market downturn.

Conversely, a few companies are performing slightly better than their issue prices. Entero Healthcare, Vraj Iron & Steel, Arkade Developers, Swiggy, Afcons Infrastructure, and Gopal Snacks are examples of companies currently trading above their issue prices. This illustrates the mixed bag of outcomes in the IPO market this year.

Experts suggest that investors are currently wary of potential losses and are therefore avoiding both primary and secondary markets. The ongoing market turbulence is creating a challenging environment for IPOs, leading to lower-than-expected demand and subscriptions. This is a critical point to consider when evaluating the overall market sentiment.

This data provides a snapshot of the current situation. It's important to remember that market conditions are constantly evolving, and investors should conduct thorough research before making any investment decisions. Stay tuned for further updates.

Hello, everyone. Today's blog post delves into the performance of Initial Public Offerings (IPOs) in 2024. While the year has seen a significant amount of capital raised through IPOs, the returns have been quite mixed. A substantial number of companies are currently trading below their issue prices, marking a disappointing outcome for investors.

Data reveals that over 40% of the companies that debuted this year are now trading below their original offering price. This is particularly concerning given that some companies had impressive listing day gains. The decline began with a market correction in October, impacting both new and established companies.

Several notable examples include ECOS India Mobility, Apeejay Surrendra Park Hotels, Saraswati Saree Depot, Northern ARC Capital, and Ola Electric Mobility. These companies, which had promising debuts, are now experiencing significant discounts to their issue prices. For instance, ECOS India Mobility, which saw a surge of over 33% on its first day, is now only 1% above its issue price. Similarly, Apeejay Surrendra Park Hotels and Saraswati Saree Depot, with gains of over 31% on their first day, are now trading at a 4% and 25% discount, respectively.

Several factors are contributing to the disappointing IPO returns. Firstly, the overall market sentiment has shifted dramatically since the beginning of October. The benchmark indices, Nifty and Sensex, have experienced substantial declines, significantly impacting the secondary market. This downturn, coupled with aggressive IPO pricing, has led to subdued post-listing performances.

Secondly, the reversal of Foreign Portfolio Investor (FPI) activity has played a crucial role. Rising US 10-year bond yields have made US markets more attractive, prompting FPIs to withdraw from both primary and secondary markets in India. This withdrawal, coupled with perceived high valuations in the Indian market, has further dampened market sentiment and reduced IPO listing gains and Grey Market Premiums (GMPs).

Thirdly, the current market turbulence is deterring investors. Investors are wary of potential losses, leading to lower demand and subscriptions for IPOs. This decreased demand is directly impacting listing performance, as the secondary market downturn is impacting the primary market.

This downturn is impacting a broad range of companies, from popular vehicles to financial services, to construction firms. The decline in stock prices is impacting various sectors and is not confined to a particular segment. Several companies, including Popular Vehicles & Services, Capital Small Finance Bank, and Akme Fintrade India, are experiencing substantial declines, exceeding 30% from their listing prices.

While some companies, like Entero Healthcare, Vraj Iron & Steel, and others, are performing better than their issue price, the overall trend points towards a mixed bag of returns. The current market volatility is clearly affecting the primary market, with investors exhibiting hesitancy in both primary and secondary markets. This is reflected in the reduced demand and subscriptions for IPOs.

In conclusion, the IPO market in 2024 is experiencing a period of adjustment. The market downturn, shifts in investor sentiment, and FPI activity are all contributing factors to the mixed bag of returns. Investors need to carefully consider these factors before making investment decisions.

Note: Data is based on information available at the time of writing. Please consult with a financial advisor before making any investment decisions.

Analysis of Specific IPO Performances

Hello everyone, and welcome to today's blog post. We're diving into the world of Initial Public Offerings (IPOs) in 2024, and it's a mixed bag, to say the least. While a record amount of funds have been raised, a significant number of companies are trading below their issue price. Let's break down this interesting trend.

The data paints a clear picture. Over 40% of companies that went public this year are now trading below their initial offering price. This follows a market correction that began in October, impacting even companies that had impressive listing day gains. Many prominent names are affected, including those that saw stellar debuts. This is a noteworthy point, highlighting the volatility of the market.

Let's look at some specific examples. ECOS India Mobility, for instance, surged over 33% on its debut, but is now trading just 1% below its issue price. Similarly, Apeejay Surrendra Park Hotels and Saraswati Saree Depot, which both saw gains of over 31% on their first day, are now trading at a 4% and 25% discount, respectively. These are just a few examples of companies that initially performed well but have since fallen below their issue price.

Other notable names experiencing a similar fate include Northern ARC Capital and Ola Electric Mobility, both down over 10% from their issue price. Shree Tirupati Balajee Agro Trading and Akums Drugs & Pharmaceuticals, which saw gains over 17% on listing day, are now trading 13% and 6% below their respective issue prices. This underscores the fluctuating nature of the market.

This downturn isn't limited to a few companies. Many more have experienced similar struggles. In fact, Popular Vehicles & Services, a notable example, is trading down over 46% from its issue price. This is followed by Capital Small Finance Bank and Akme Fintrade India, which are down 38% and 32%, respectively. Western Carriers, R K Swamy, and Deepak Builders & Engineers India are also among the significant losers, trading below their issue prices.

However, not all stories are negative. A few companies, including Entero Healthcare, Vraj Iron & Steel, Arkade Developers, Swiggy, Afcons Infrastructure, and Gopal Snacks, are currently trading slightly above their issue prices. This demonstrates the mixed performance across the board.

The overall performance of the IPO market is closely tied to the secondary market. After hitting record highs in September, benchmark indices like the Nifty and Sensex have seen substantial declines. This shift in market sentiment, combined with aggressive IPO pricing and reduced listing gains, has contributed to the subdued post-listing performance. The market correction, coupled with investor concerns, has affected demand and subscriptions for IPOs.

Experts point to a number of factors contributing to this decline. The reversal of Foreign Portfolio Investor (FPI) activity, coupled with rising US 10-year bond yields, has made US markets more attractive. This has led to FPIs withdrawing from both primary and secondary markets, further dampening market sentiment and reducing IPO listing gains and Grey Market Premiums (GMPs). This is a crucial point to consider.

Overall, the IPO market in 2024 presents a mixed bag. While some companies have performed well, many are trading below their issue price. Market volatility, investor sentiment, and external factors like FPI activity are all contributing to this trend. Investors should carefully consider these factors before making any investment decisions.

Thank you for joining me today. Stay tuned for more market updates.