FY23 IPOs: Top Gainer and Losers

IPO stands for Initial Public Offering. It is the process through which a privately held company offers its shares to the public for the first time. In an IPO, the company issues new shares to investors, allowing them to become shareholders of the company.

The number of companies that submitted offer documents to the SEBI decreased by 54% to 66 in comparison to the 144 draft papers filed in FY22. In the current fiscal year, a total of 34 companies have listed on exchanges after raising Rs 51,482 crore through IPOs.

This is in contrast to the previous fiscal year, where 53 companies listed after IPOs worth Rs 1.11 lakh crore. The decline in IPO filings in FY23 can be attributed to the underwhelming performance of high-priced IPOs in FY22. These IPOs, including those of Zomato, Paytm, Nykaa, and PB Fintech, achieved sky-high valuations by showcasing significant growth during the pandemic year of FY21.

The recent instability in the equity markets has resulted in a significant decrease in IPOs. Typically, companies wait for favourable market conditions before launching an IPO in order to generate high levels of investor interest despite potentially higher valuations.

In the month of April and May 2023, a total of 18 IPOs were listed in the stock market whereas 5 IPOs are currently ongoing whereas 3 IPOs are about to start on May 23.

Since their original offering, these stocks have outperformed their listing prices by providing excellent absolute returns.

Worst-Performing Stocks:

Despite being the largest IPO for FY23, LIC India Ltd has failed to meet expectations and is currently trading nearly 60% below its issue price. In contrast, Venus Pipes & Tubes Ltd has performed remarkably well, delivering an impressive absolute return of over 200%.

These stocks are trading in the range of 10% from its 52-week high.

When a stock is trading within a 10% range of its 52-week high, it is often regarded as having the potential to generate gains and reach new highs in the future.

These stocks are trading 50% below its 52-week high:

Stocks having a large portion of retail shareholding:

Top 5 stocks where retail investors have shown interest during Q4FY23:

Making money in the stock market is neither easy nor extremely difficult. Among the 32 companies observed, only 21 have provided positive returns, while 11 companies are still experiencing negative returns. Venus Pipes & Tubes Limited and Kaynes Technology India Ltd have excelled by delivering returns exceeding 100%. On the other hand, LIC has emerged as the biggest loser, with a negative return of 60% from its listing price. Tamilnad Mercantile Bank Ltd has a public holding of 94.46%. Notably, during the last quarter, Tracxn Technologies Ltd attracted significant retail investment, increasing from 35.29% to 39.01% a gain of 3.72%, and achieved an absolute return of over 14.38%. Whereas Delhivery Ltd played a significant role in the capital erosion of investors by generating a negative return of over 24% and stock is trading at 91% down from its 52-week high the retail investors hold 19.34% as per the latest quarter.