IPO’S have managed to maintain a gain loss ratio situation at the ratio of 1:4 in last 5 years. It is a known fact that investors have made their money in one out of every five IPO’S that hit the market in the past five years. All this has taken place despite the current bear phase. It has been found that out of 257 initial public offerings (IPO’S) which were launched in the last five years, showed that among 53, investors are yet in the profit. Out of these, there are two stocks which have given over 1000% return, after adjusting the bonus, split, de-merger of businesses and other important components. So, suppose an investor invests about Rs.1 Lakh in stocks of Educomp Solutions and
Indiabulls Financial Services, at the time of the IPO and is still holding those shares, that investment can be considered to be worth over Rs.11 lakh.
Educomp Solutions, an e-learning pioneer, has given a return of 18 times which is about 1,679% to its investors. On the other hand, we also have the Indiabulls Financial which gave a return of over 13 times which is about 1,228% since its IPO in September 2004 at Rs. 19 per share. Since three and half years of its listing, the company has de-merged its real estate into Indiabulls Real Estate and broking into Indibulls Real Estate and broking into India bulls Securities from the main company and also listed them. In the post
de-merger scenario, the share holders of Indiabulls Financial got shares of these two companies without any cost to them.
According to the data that is available on the NSE, it has been found that since the beginning of 2004, there were 257 public offerings. Out of these, there are 53 of them which are still showing positive returns. The remaining balance of 2004 IPO’S investors have achieved losses.