Diwali 2023: These 6 companies listed in Samvat 2079 gave multibagger returns; check full list

Six companies listed in Samvat 2079 have given multibagger returns (compared to their issue prices) so far while most of the remaining are trading above their issues prices.

While the first few months of the ‘samvat’ were muted in terms of initial public offers (IPOs), the latter months more than made up for it with a bumper rush of public offers and strong listings. The number of IPOs increased this ‘samvat’ because many companies shifted their IPO plans to this year to combat market volatility in the previous year.

Of the 56 companies listed in Samvat 2079, most have given positive returns.

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6 newly listed companies that gave multibagger returns this Samvat:

Kaynes Technology: This stock has given the highest returns among the companies listed in Samvat 2079, rallying 322 percent to ₹2,476.60 from its issue price of ₹587. The stock, which went public on November 22, 2022, enjoyed a great debut, opening at ₹778 apiece, which was almost 32% higher than its IPO price. It closed the first day with a 17.5% gain at ₹690. The stock has given positive returns in all months till now since listing.

Global Health: The stock more than doubled investor money, rising 156 percent to ₹858 currently from its issue price of ₹336. The stock was listed on November 16, 2022, at ₹401, over 19 percent premium to the issue price.

Cyient DLM: The stock has given multibagger returns, soaring 139 percent to ₹633.05 currently from its issue price of ₹265. The stock was listed at an over 52 percent premium to the issue price.

Plaza Wires: The stock has jumped 125 percent to ₹121.55 currently from its issue price of ₹54. The stock was listed on October 13, 2023, at ₹76, an almost 41 percent premium to the issue price.

Senco Gold: The stock has surged 122 percent to ₹703 currently from its issue price of ₹317. The stock was listed on July 14, 2023, at ₹430, an almost 36 percent premium to the issue price.

Utkarsh Small Finance Bank: The stock rose 100 percent to ₹50 currently from its issue price of ₹25. The stock was listed on July 21, 2023, at ₹40, a 60 percent premium to the issue price.

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Only six newly listed companies - Honasa Consumer (Mamaearth), Uniparts India, Yatra Online, IRM Energy, Updater Services and Elin Electronics - are still below their issue prices. Ein Electronics is the worst of the lot with the current market price of ₹155, 37 percent below the issue price of ₹247.

Updater Services is down 11 percent from its IPO price whereas IRM Energy is trading at almost a 9 percent discount and Mamearth is over 6 percent away from the issue price. Meanwhile, both Yatra and Uniparts are just 2.5 percent away from their respective IPO prices.

Listing gains

In Samvat 2079, companies including Ideaforge Tech, Netweb Technology, Utkarsh Small Finance Bank, Cyient DLM, JSW Infra, EMS, Jupiter Life Line Hospitals, Ratnaveer Precision Engineering, Vishnu Prakash R Punglia, Aeroflex Industries, Concord Biotech, Netweb Technologies, Senco Gold, IKIO Lighting, SBFC Finance, Cello World, and Mankind Pharma, recorded strong listing gains ranging from 20 percent to 93 percent. However, not all IPOs have been so fortunate. 

Yatra Online's shares fell by 10.2 percent when they were listed, while Inox Green's stock shed 7 percent on debut and Fusion Microfinance’s stock declined 2.3 percent.

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Outlook

Going ahead experts expect this trend in IPOs to continue with many companies already in the pipeline. 

"IPOs, their quantum, and their success are a function of how markets are doing. So, the trend should continue. However, before investing in an any IPO, one must look at sustainability, moat, valuation, and quality of promoters. It's always about quality, don't get swayed by the flow," said Manish Jain of Ambit Asset Management.

Most experts advise evaluating IPOs on a case-by-case basis rather than taking a blanket approach of putting in applications for every IPO that comes along.

"Investing in IPOs can be a lucrative endeavor. People are beginning to expect that every IPO that hits the market will perform exceptionally well but it's not without its fair share of risks. The key is to do your own research diligently and make an informed decision before taking the plunge. To snag higher valuations, some companies go all out and slap hefty price tags on their IPOs. They often do this by diverting attention from the real nuts and bolts of their business with flashy marketing. This is why early investors absolutely must dig into a company's financial statements before they even think about jumping on board. The same principle applies to Offer for Sale (OFS) scenarios. It's crucial to grasp why you're being offered shares at a discount and what's behind that decision. You've got to delve into industry benchmarks, growth potential, and the company's story to make an informed decision," advised Shrey Jain, CEO and Founder of SAS Online.

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In the previous year, the LIC IPO captured the attention of the entire industry. Although there are no IPOs of that scale in the near future, there are a couple of IPOs on the horizon that have piqued people's interest, such as Swiggy, NSDL and OLA Electric.