Zerodha co-founder and CIO of True Beacon Nikhil Kamath, known for often sharing interesting set of data related to investments, personal finance and more on his twitter handle, recently shared a data related to initial public offerings (IPOs) on his twitter handle which showed how the 20 largest public issues have performed from 2010 to August 2021.
The details in a graphical representation, which Kamath attributed the research to a twitter handle called The Oddball, showed the returns of India's largest IPOs including coal mining and refining company Coal India, payment solutions provider SBI Cards & Payments and the recently blockbuster IPO of food-tech unicorn Zomato. Kamath tweeted the data with the caption, “Should one buy into IPOs?".
The data showed that Coal India, General Insurance, IRFC, Bandhan Bank, Hindustan Aeronautics (HAL), PNB Housing Finance are among the ones who have given negative returns as of August 2021. Meanwhile, SBI Card, HDFC Life, InterGlobe Aviation (IndiGo), Gland Pharma are some of the companies that have garnered positive returns for the investors till now. Zomato, the food-delivery startup went public in July and, despite deep losses and mediocre prospects for profitability, shares have soared more than 70%.
Since 2010, there have been total 270 IPOs, and as of the current gains, about half or 50% of these public offerings have produced negative returns, the data claimed.
The amount of money raised in IPOs this year has reached $8.8 billion, already surpassing the totals of the past three years though it’s only August. At the current pace, 2021 would exceed the all-time record of $11.8 billion, reported Bloomberg. The performance of recent IPOs, such as Zomato, has fed the enthusiasm. Newly listed Indian stocks are beating the benchmark Nifty 50 Index by more than 40 percentage points this year, the biggest gap in seven years. The year could turn out to be India's year of IPO with many domestic unicorns launching their much-anticipated public issues.
It's good to know that 'Should one buy into IPOs?': Zerodha founder shares performance of 20 largest IPOs since 2010
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