Despite a persistent bullish sentiment in the overall Indian equity markets, the newly listed stocks are struggling to climb up and are consistently falling month after month dropping to new record lows with some stocks being trading below their issue prices. However, some five newly listed stocks have managed to rally 400–800% above their IPO price.
Fine organic industries was at the top of the list. The stock made a strong entry on July 2, 2018, when it was listed at a premium of 4% over the IPO price of ₹783 and closed the day at ₹822.8, a 5.1% premium over the issue price.
Within a year of its listing, the stock rose by 90%, and within two years, it doubled investors' wealth by gaining 168%. Since its listing, the stock has delivered an astounding return of 721% to date, and it is currently trading at ₹6,755 which is 762.8% higher than its issue price of ₹783.
Fine Organic's net profit has consistently increased over the last seven quarters, beginning in December 2020. The company reported a record-high net profit of Rs. 159.8 crores in Q1FY23. It posted a net profit of ₹35.9 crore in the same quarter of the last fiscal.
Meanwhile, the stock saw its FII holdings rise from 6.8% in June 2021 to 7.2% in the June 2022 quarter. FIIs have been bullish on the company for a long time.
Neogen Chemicals was very next on the list with a return of almost 600% from its issue price. The stock was listed on the bourses on May 8, 2019, with a listing gain of 22.6% by rallying to ₹263 from the issue price of ₹215. The company had mopped up ₹132 crore through its IPO. The public offer has received a healthy response from investors as it was oversubscribed by 41 times.
|Scrip Name||Issue Price||LTP||% Return to date|
|Fine Organic Industries Ltd||783||6,755||763|
|Neogen Chemicals Ltd||215||1,506||600|
|Happiest Minds Technologies||166||987||495|
|Angel One Ltd||306||1,607||426|
In the last one-year period, the stock jumped from ₹1,187 levels to ₹1,506 levels, delivering a return of 26.87%. In the last three years, the stock has increased at a CAGR of 60.5%.
Neogen Chemicals manufactures speciality organic bromine-based chemical compounds as well as speciality inorganic lithium-based chemical compounds.
NEOGEN’s unique chemistry and capabilities and its participation in emerging sectors such as electric vehicles (EV) provide a huge growth opportunity. We expect its earnings to increase at an FY23–25E CAGR of 26%, said Edelweiss.
Besides that, India’s speciality chemicals companies are expanding their capacities to cater to rising demand from domestic and overseas markets. With global companies seeking to de-risk their supply chains, which are dependent on China, the chemical sector in India has the opportunity for significant growth.
The third most successful IPO on the chart was Happiest Minds Technologies, which was listed on the bourses on September 17, 2020. The stock made a strong debut on the exchanges. The scrip was listed at a premium of 111% at ₹351 on the NSE as against the issue price of ₹166. The stock finally finished the day with a listing gain of 123.5% at ₹371. The IPO received a tremendous response from investors as it was subscribed to nearly 150 times. The stock is currently trading at Rs. 987, which is 495% higher than the IPO price.
On October 5, 2020, Angel One was listed on the exchanges. The stock had a lacklustre debut as it was listed 10% below the issue price of ₹306, but within a year it delivered a multi-bagger return of 352%, and after two years it increased by almost 400%. At current levels, the stock is trading 426% above its IPO price.
The client base of Angel One jumped 77.4% to 11.57 million in September 2022 as against 6.52 million in September 2021, Business Standard reported.
On a sequential basis, the company's client base rose by 3.4% MoM from 11.18 million clients in August 2022. Angel's overall average daily turnover (ADTO) rose to Rs. 13,73,800 crore in September 2022, up 10.9% MoM and up 116.4% YoY. The company's ADTO from the F&O segment stood at Rs. 13,42,600 crore in September 2022, up 11% MoM and up 116.8% YoY, the report said.
Shareholders of Polycab India were ecstatic with its stock performance over the last three years. Since its listing, the share price of Polycab India has risen gradually from ₹643.55 to the current level of ₹2,762, representing an increase of about 330%.
Polycab was listed on the exchanges on April 18, 2019. The stock gained more than 21.7% on the first day of trading, rising from the issue price of Rs. 538 to ₹654.8. Taking the current trading price of ₹2,765 into consideration, the stock has rallied 414% from its IPO price.
It reported a net profit of ₹268 crore for the July-September quarter, a jump of 37.3% compared with the corresponding period a year ago.
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