February 22, 2025
Wealth created by 2025 Mainline IPOs

Wealth created by 2025 Mainline IPOs

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Investing in IPOs can create wealth in the long term. However, one should be wise to select and invest in the right company that has bright prospects. An investor should study and analyse the company in-depth before making an investment decision.

Many investors invest in IPO to make quick profits in the form of listing gains. However, there are few others, who prefer to stay invested as they know the company will generate wealth for them in the future.

This report displays the details of each IPO in terms of listing day gains v/s wealth created by the IPO as of today. It also highlights if the SME company has migrated to the mainboard. The migration of SMEs to the mainboard further boosts the performance of the company. (this line only for the SME tab)

Based on the analysis of the below data coupled with one’s self-assessment, financial goal and holding capacity, investors can choose their exit strategy.

Note: Three prices are taken into account in this report:

  1. Issue price final (price at which the IPO shares are sold)
  2. Listing day close price (price at the end of the day on which the IPO shares are listed)
  3. Current Market Price (current market price of the share)

The wealth creation is derived using below formula:

  • 2-1 = Listing Day Gain
  • 3-2 = Wealth creation w.r.t. Listing Day Close Price
  • 3-1 = Wealth Created

The information presented in this report is based on historical data from SME IPOs and includes the following key figures, with specific conditions to ensure accuracy:

  • Amount Raised (Rs) (Public issue size): It reflects the capital raised by the issuer company through IPO.
  • Market Cap (IPO) (Rs Cr): Represents the post-issue market cap of the issuing company.Market Cap (IPO) (Rs Cr) = Post-issue Shareholding * Issue Price Final
  • Market Cap w.r.t. Listing Day Close Price (Rs Cr): Represents the market cap of the issuing company in relation to the listing day close price. Most people do not get allotment in IPOs with high demand. However, they can buy shares on the market on the day of listing. This parameter is the basis for calculating wealth creation when shares are bought from the open market on the day of listing.Market Cap w.r.t. Listing Day Close Price (Rs Cr) = Post-issue Shareholding * Listing Price Close Price
  • Current Market Cap (Rs Cr): Represents the market cap of the issuing company in relation to the current market price. Note: The market cap does not take into account the effects of corporate action events such as bonuses, rights, buybacks, share splits, etc.Current Market Cap (Rs Cr) = Sum (Post-issue Shareholding * Current Price)
  • Wealth Created (Rs Cr): This value reflects the difference between the current market cap and the market capitalization at the time of the IPO.Wealth Created (Rs Cr) = Current Market Cap (Rs Cr) – Amount Raised (Rs)
  • Listing Day Gain (%): This value reflects the percentage profit on the day of listing in relation to the final issue price. For example, if the final price of an IPO share is Rs 100 and the listing day close price is Rs 140, the profit on the listing day gain is 40%.Listing Day Gain (%) = (Market Cap w.r.t. Listing Day Close Price – Market Cap (IPO) / Market Cap (IPO)) * 100)
  • Wealth creation w.r.t. Listing Day Close Price (%): Represents the percentage of wealth created by the IPO compared to the IPO shares bought in the open market on the day of listing. For example, if an investor bought the shares at a price of Rs 140 on the open market on the listing date and the current share price is Rs 420, the wealth creation w.r.t. listing day close price is 200%.Wealth creation w.r.t. Listing Day Close Price (%) = (Current Market Cap – Market Cap w.r.t. Listing Day Close Price / Market Cap w.r.t. Listing Day Close Price) * 100
  • Wealth Created (%): Represents the percentage of wealth created by the IPO compared to the investments made.Wealth Created (%) = (Current Market Cap – Market Cap (IPO) / Market Cap (IPO)) * 100
  • SME Migrated to Mainboard: Refers to the companies that were listed on the SME exchange in a given year and later moved from the SME platform to the main stock exchange.

Additional IPO Performance Reports

Courtsey To : Chittorgarh

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