2020 IPO Performance List will show you how the IPO’s launched last year despite the pandemic (coronavirus) performed and gave returns to investors in India. There were about 39 Ipo’s listed last year in 2020, which includes some of the SMEs (Small Medium Enterprise) as well.
Even after being a very tough year for investors as well as companies, there were lot of participation on Dalal Street. Even after being a year with so much happening most of the IPO’s listed gave splendid returns to investors, However there were few who did not performed as per expectation.
Apart from knowing the highest returns IPO’s from 2020, In this post we will also check the list of upcoming IPO’s in 2021 and what one need to check before applying for IPO in detail.
Below is the list of well-known IPO’s that got listed in 2021 with details such as IPO issue size, listing date and name of the companies.
2020 IPO List of Major Companies In India:
As, you can see in the image above there were about 14 Major IPO’s tat got listed, out of them only 4 have performed in gave negative returns on listing day. Let us now see, how they gave returns to investors and created wealth.
2020 IPO Performance List With Highest Returns in India:
As you can see in the image above Chemcon Speciality Chemicals Ltd. gave highest returns (115%) to investors on listing day itself, followed by Happiest Minds Technologies Ltd. with 111% returns, Route Mobile Ltd. with 102.30% returns is at third place in 2020.
Apart from that there were few IPO’s which also gave negative returns in 2020, the much anticipated IPO of the year SBI Cards And Payment Services Ltd. opened negatively -12.80%, Whereas one of the major stock broking company Angel Broking also listed negatively -10.10% on bourses.
This is also called getting listed in a stock exchange. Once it gets listed in public domain on any exchange (NSE, BSE) people can trade them just like normal stocks. Read Everything about IPO here.
List Of Upcoming IPO’s In 2021 In India:
Below is the list of Upcoming IPO’s In 2021 in India, 4 major IPO issue date is already announced, Indigo paints limited, Indian Railway Finance Corporation LTD, Home First Finance Company IPO and Stovekraft Limited IPO.
You as an investor can keep some funds aside to invest in upcoming IPO’s as, 2021 could be a strong year for IPOs again. Having said that there are few things that you need to keep in mind before investing in IPO’s, Let us know them one by one in detail.
Important Things To Keep In Mind Before Applying For IPO’s:
Although there are lot of companies which may come up with their IPO’s due to various reasons such as raising capital (money), avoiding debt or loan, you as an investor should be aware of the basics and financials of the company before applying for IPO.
The information about the company is available in draft red herring prospectus (DRHP). In simple words, a DRHP or offer document provides detailed information about the business operations and financials of the company.
The Securities and Exchange Board of India (SEBI), has made it mandatory for companies to file a DRHP before going for an IPO.
However, going through a huge document may be a tedious task. So, investors can focus only on some of the essential parts of the document, which will be good enough to understand the business and its prospects.
Below, are the key points one must look in general before applying for an IPO:
- Keep an eye on promoters and top management of the company as they are key assets of the company. Take a close look at promotes and managers who are usually going to take all the decisions of the business.
- You should also check, there is no corporate governance issue in the company because any negative news could be a red flag and adversely affect the future performance of the company.
- The investor should also take note of the company’s strength and its positioning in the industry. Likewise, going through the historical financial numbers is also important. It is essential to check if there is a sudden spike or fall in financial performance in the past one year or few quarters just before an IPO.
- It is important to check the promoter shareholding before and after the IPO. A higher promoter shareholding in the company is always better for minority shareholders.
- It is also important to understand the utilization of funds raised through the IPO. If the funds will be utilized in the existing business or for an expansion, it will be a good sign of future prosperity.
- See how the valuation of the company fares as compared to existing companies in the same industry. Relative valuation techniques like Price to earnings ratio, price to book ratio and return on equity, return on capital employed can be used to conclude whether the IPO is available at a discounted price or is expensive as compared to its competitor in the market.
- Reading the risk factors is very important. At times there are certain litigations and liabilities, which can be a threat to the company’s future business prospects.
- Try to fill for the same IPO online from different DP ID i.e. if in your family have more than 1 account you can possibly get the allocation done in case of over subscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
- Read as much as you can about the company, its objectives for launching the IPO, its past history in business and its futures prospectus.
- Don’t go for hype in the news, your analysis should be based on facts rather than gossips and rumors.
- Many IPOs are oversubscribed. What this means is that the demand for shares is much higher than the shares available for sale. In such a situation, it is no surprise that many investors fail to get any shares allotted to them. This is why it is advisable to apply for IPO shares on the last day of bidding. This way, one can have a good estimate on how large the subscription will be. Also, in that case, one should bid for just one lot and not unnecessarily lock up their capital.
Applying for IPO is quite simple, you just need to check with your broker as most of the stock broker in India provide you the platform to apply directly through their portal instead of ASBA process or from bank.
The only thing which should be bothering you is the research you did before applying for the IPO. Investing in IPO is risky as well as profitable.
I hope, 2020 IPO Performance List have given you lot of encouragement to save some money and apply in IPO’s as they are one of the best way to garner quick profits.
If you are not someone who trades regularly or do investments, you can save 3k everything month from your salary or whatever mode of income you have and place at least a lot, which is usually cost around Rs.14,500. So in a year you can apply for at-least 2 major IPO if not more.
This way you can churn some good profit instead of just keeping it in bank. Having said that you also need to keep in mind important things mentioned above before applying to IPO’s as the risk is always involved.
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Do you know the concept of present value of your future money, if not then you should.
Just like 100 rupees in your pocket today will not have value of 100 rupees after 5 years, similarly 100 rupees you receive in future, invested today won’t have the same value. ?Confused??
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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments. The above details are compiled from information available on public platforms. These are not buy or sell recommendations.
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