Most successful IPOs in the last 3 years
The past few years have been successful for India’s stock markets as several new investors joined the market, pushing the indices higher. These indices (Sensex and Nifty) have been making all-time highs. Even IPOs or Initial Public Offerings were very successful, witnessing oversubscription and bumper listings.
This article covers:
- Happiest Minds Technologies Ltd.
- Indian Railway Catering and Tourism Corporation (IRCTC)
- HDFC Asset Management Company (HDFC AMC)
Table of Contents
- Happiest Minds Technologies Ltd.
- Indian Railway Catering and Tourism Corporation (IRCTC)
- HDFC Asset Management Company (HDFC AMC)
Happiest Minds Technologies Ltd.
Happiest Minds went public last year in Sep 2020 with an issue price of Rs 166 per share. It witnessed a bumper listing at a premium of 111.4% over the issue price. It means the share price more than doubled on listing at Rs 351. The investors who were allotted its shares were ecstatic on the day of listing. This is because Happiest Minds Technologies Ltd. current share price is Rs 541 as of the closing on 19 February 2021. It means a return of 225% from the issue price in just 5 months and a return of 54.1% from the listing price.
The company was started at the turn of the last decade in 2011 and has gained a lot of credibility in just 10 yrs since its inception. They are into IT infrastructure, digital transformation, and engineering services. They have expertise in big data, analytics and cloud-driven IT solutions. This company’s fundamentals are also robust as their revenue is increasing every year at a decent pace, and the profit after tax jumped from Rs 4 cr in the financial year 2018-19 to Rs 73 cr in the year 2019-20.
Indian Railway Catering and Tourism Corporation (IRCTC)
You would have heard about Indian Railway Catering and Tourism Corporation or IRCTC as it is famously referred to as. IRCTC has a clear monopoly in internet ticket booking, packaged drinking water and catering services in the Indian Railways. It came out with an IPO in Oct 2019, with an issue size of Rs 645.12 cr. The price band was Rs 315-320 per share, with 40 shares in a single lot. In line with the expectations, IRCTC saw a stellar opening on domestic bourses on listing day.
The listing gains were more than 100% for investors who were allotted shares in this IPO as the stock got listed at Rs 644, which is more than double the issue price. Now comes the best part. You would be amazed to know that the current share price as of closing on 19th Feb 2021 is Rs 1,685. This is after the stock has touched a lifetime high of Rs 1,994 which is more than 500% than its issue price 3 yrs ago.
The rise in IRCTC is attributed to investors’ optimism for the company and its superior financials. The profit after tax for IRCTC was Rs 272 cr in the financial year 2019-20, which is up from Rs 220 cr in the previous financial year. Earnings per share (EPS) is also shooting north y-o-y and so is its share price.
HDFC Asset Management Company (HDFC AMC)
HDFC AMC, one of the most awaited IPO in India, finally came out after many years in Jul 2018 with an issue size of Rs 2,800 cr. The price band was Rs 1,095 to Rs 1,100 per share with 13 shares in one lot. Investors were frenzied and placed multiple bids and several lots, expecting a massive opening. On the day of listing, the share opened at Rs 1,739, a 60% gain on listing day itself, and it went on to touch Rs 1,842 on the same day.
As of the closing of the market on 19th Feb 2021, the current share price is Rs 2,930, a whopping 166% increase from its issue price. The 52-week high share price is even higher at Rs 3,446, which speaks volumes about investors’ confidence in this company. The fundamentals of HDFC AMC are equally promising, with revenue growth of 20% and a 19% rise in profit after tax with a return on equity of 34%. Their asset under management (AUM) is also on an upward trajectory with 28% growth. They are market leaders in the AMC space of India.
This is what we have for you on some of India’s successful IPOs in the past 3 yrs. There were many other successful IPOs like Chemcon Specialty, Route Mobile, Rossari Biotech, Burger King, Mrs Bectors, Bandhan Bank, ICICI Securities, to name just a few. However, we have chosen the top 3 who gave high and sustainable returns to investors even after a couple of years of getting listed.
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