IPO Performance: How 5 IPOs Listed in May 2024 Fared

Investing in Initial Public Offerings (IPOs) has always been an attractive prospect for many investors. In May 2024, several companies went public, providing opportunities for substantial IPO listing gains and beyond. Here, we analyse the IPO performance of the top IPOs of May 2024, detailing their listing day gains, post-IPO market performance, and when they reached their 52-week high.

Understanding IPOs and Their Appeal

An IPO is the process of privately held companies raising capital by selling shares to the public for the first time and getting listed on stock exchanges. The appeal of IPOs lies in their potential for quick gains on the listing day, driven by high demand and market speculation.The success of an IPO can be influenced by several factors:

• Public Demand: High public interest can drive oversubscription and push prices higher.
• Company Fundamentals: Strong financial health and growth prospects attract investors.
• Valuation: Reasonable valuation ensures investor confidence.
• Market Conditions: Favourable market conditions can enhance IPO performance.

IPO Performance: 5 Mainboard IPOs Listed in May 2024

1. TBO Tek Limited IPO (TBO Tek IPO)

TBO Tek Limited, formerly known as Tek Travels Private Limited, is a travel distribution platform that simplifies the travel business for suppliers and customers alike. It offers travel inventory tailored to customer needs, supports multiple currencies, and provides forex assistance.

The IPO, valued at ₹1,550.81 crore, was listed on May 15, 2024, at an issue price of ₹920 per share. On the listing day, the price soared to ₹1,404.85, marking an impressive 52.7% IPO listing gain. Currently, the stock is priced at ₹1,395.05 per share, with a rise of 51.6%. The stock’s lifetime high was ₹1,489.80, reached on May 17, 2024.

2. Indegene Limited IPO

Indegene Limited, which specialises in digital services for the life sciences industry, supports drug development, clinical trials, regulatory submissions, pharmacovigilance, complaints management, and sales/marketing. Under the “DT Consulting” brand, its subsidiary, DT Associates Limited, aids life sciences companies in digital transformation for enhanced customer experience.

The IPO, sized at ₹1,841.76 crore, was listed on May 13, 2024. The issue price was ₹452 per share, and the shares debuted strongly at ₹570.65, marking a 26.25% IPO listing gain. Currently, the stock is priced at ₹513.80, marking a rise of 13.67%. Impressively, the stock reached its lifetime high of ₹659.70 on May 13, 2024.

3. Aadhar Housing Finance Limited IPO

Aadhar Housing Finance Limited targets the lower-income segment, focusing on India’s tier 4 and tier 5 towns. The company offers various mortgage loan products for residential and commercial property purchases, construction, home improvement, and extensions.

The IPO was substantial, with an issue size of ₹3,000 crore. It listed on May 15, 2024, at an issue price of ₹315 per share. The shares debuted at ₹329.55, marking a 4.62% increase on the first day. Currently, the stock is priced at ₹340.05, reflecting a substantial gain of 7.95%. The stock’s lifetime high was ₹371.45, achieved on May 17, 2024.

4. Go Digital General Insurance Limited IPO

Go Digit General Insurance Limited offers a comprehensive range of insurance products, including motor, health, travel, property, marine, liability, and customisable insurance solutions.

With a total of 74 active products across all its business lines, the company caters to diverse customer needs. The IPO, valued at ₹2,614.65 crore, was listed on May 23, 2024, at an issue price of ₹272 per share. On the listing day, the price surged to ₹305.75, marking a notable 12.41% increase. Currently, the stock is priced at ₹298.40, marking a rise of 9.70%. The stock’s lifetime high was ₹314.00, recorded on May 23, 2024.

5. Awfis Space Solutions Limited IPO

Awfis Space Solutions Limited is a prominent workspace solution provider in India. The company offers flexible workspace solutions for individuals, start-ups, SMEs, and large corporations.

Awfis Space Solutions Limited’s ₹598.93 crore IPO was listed on May 30, 2024. The shares debuted at ₹435 a piece, marking a 13.5% premium over the issue price of ₹383. The IPO saw a surge in demand, with a subscription rate of 108.17 times. Non-institutional investors subscribed 129.28 times, followed by qualified institutional buyers at 116.95 times, retail investors at 53.23 times, and employees at 24.67 times. The current share piece is ₹421.75, marking an increase of 10.11%.

NOTE: The information about the share price reflects the market as of Thursday, May 30, 2024.

Conclusion

While investing in IPOs can be lucrative, it is crucial to conduct thorough research and consider market conditions before investing. Listing day performance or IPO listing gains do not guarantee long-term success, and market volatility can affect stock prices.

Stay ahead with the latest on Upcoming IPOs! Discover promising opportunities and get ready to invest.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.