The year 2020 was exceptional for the IPO market with 15 primary issues listing in the year despite the COVID-19 pandemic. Most of the IPO hit D-Street in the second half of 2020 had strong subscriptions and a number of them gave robust listing day gains which lured more retain investors to join the part in primary markets.

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Another slew of IPOs are slated for 2021 which over 10 IPO already launched.

With markets is a bullish trend on the back of FII inflows, earnings recovery, and better than expected economic rebound on the back of covid vaccination, most retail investors are looking to invest in IPO for listing as well as long term gains.

So does listing gains assure long-term gains?

Of those 15 IPOs listed in 2020, 11 have continued to give double-digit gains while 2 are in the red and two are flat.

3 of those IPOs rose over 100 percent on a listing day but have not performed as well since then.

Happiest Minds, which was up 123 percent on listing day has since given 43 percent returns while Burger King which listed at a whopping 130 percent has just risen 1 percent since then. Mrs Bectors Food, another IPO that listed at 106 percent gains is currently trading 35 percent lower since listing.

However, companies like Route Mobile and Likhita Infra have delivered over 100 percent returns since their listing. Route Mobile, which saw gains of 86 percent on day 1 has since risen 148 percent while Likhita which posted decent gains at listing (13.8%) is now up 131 percent from that day.

Other stocks like Equitas SFB, SBI Cards, Happiest Minds, Gland Pharma, Rossari Biotech and CAMS have also gained over 30 percent each since they started trading.

Market analysts advise investors to book profits if looking for a short-term investment or wait if the stock has growth potential. In case of tremendous listing, the stock might consolidate a bit in the near term post that, they added.

(Edited by : Aditi Gautam)

First Published:Mar 10, 2021 1:51 PM IST