IPO Watch 2023: Decoding the Long-Term Outlook for IPO India 2023

IPO watch 2023 – the year has been a roller coaster ride for the Indian IPO market, witnessing both phenomenal debuts of new companies into the equity market and their outstanding performances. As the year ends soon, it is important to understand the performance of those IPOs, what went wrong, and where the sparks fly.

Let’s deep dive into the trend of IPOs and their performance in India this year. Let us explore the trends, top gainers, and reasons behind the varied trajectories.

IPO Watch 2023 and Beyond

There are 45 IPOs listed in stock exchanges in India in 2023. Many established companies became public this year. Many IPOs listed with a bang and many without any noise. Over all the primary market saw mixed results over the year 2023.

While Tata tech IPO opened with a bang, surging 162% on listing day, Netweb gained 82% while Ideaforge tech gained 93% on the listed day. Other companies like IRM Energy faced a lukewarm reception, dipping 6% on the listed day. This highlights investor’s preference for proven businesses with strong growth potential in resilient sectors like technology.

Performance of New IPO stocks 2023

Here I have taken those IPOs where QIB portion subscribed more than 20 times. For complete list of IPOs you can visit the link given below this table. This data is only to analyze the performance of IPOs based on the QIB subscription data.

IPO Date	Name of IPO Watch	QIB Portion Filled	HNI Portion filled	Retail Portion	Issue Price	Listing Price (Close)	Listing Gain (%)
30-11-2023	Tata Tech	87.32	21.08	7.93	500	1314.25	162.85
27-07-2023	Netweb	81.14	30.7	10.29	500	910.5	82.1
16-08-2023	SBFC Finance	76.49	19.46	5.69	57	92.21	61.77
10-11-2023	ESAF SFB	64.05	28.78	6.57	60	69.05	15.08
01-12-2023	Flair Writing	56.82	11.29	4.35	304	452.7	48.91
30-11-2023	Gandhar Oil	55.02	20.98	13.34	169	301.5	78.4
21-09-2023	EMS	53.36	30.98	10.64	211	279.75	32.58
16-06-2023	IKIO Lighting	52.6	19.91	5.68	285	403.75	41.67
20-12-2023	India Shelter	50.18	12.18	3.77	493	543.5	10.24
11-09-2023	Ratnaveer	49.51	56.66	26.88	98	134.4	37.14
21-12-2023	Inox India	49.29	19.27	7.67	660	939.9	42.41
07-07-2023	Ideaforge Tech	44.17	30.36	45.54	672	1295.5	92.78
29-11-2023	Indian Renew	35.1	6.06	3.32	32	59.99	87.47
15-11-2023	ASK Auto	32.47	13.68	3.16	282	310.2	10
07-11-2023	Cello World	31.93	8.01	1.44	648	799.25	23.34
03-04-2023	Udayshivakumar	28.94	27.06	6.7	35	33.39	-4.6
20-12-2023	DOMS Industries	24.72	18.47	34.13	790	1330.85	68.46
09-05-2023	Mankind Pharma	22.72	1.47	0.44	1080	1424.05	31.86
18-08-2023	Concord Biotech	21.1	5.33	1.58	741	941.85	27.11
26-10-2023	IRM Energy	21.03	19.21	4.66	505	473.15	-6.31

Sectoral IPO Watch

Certain sectors emerged as clear out performers in the IPO India 2023. The defense sector, fueled by geopolitical tensions, saw a strong performance from companies like Ideaforge Tech, while the Finance space continued its upward trajectory with SBFC Finance delivering an 82% return and Indian Renew delivering an 82% return on listing day. Similarly, in and technology space companies like Tata Tech, NetWeb, Avalon Tech, and Cyient DLM have given strong returns on listing. Investors sought stability and growth potential in these resilient sectors amidst market volatility.

Beyond Listing Day of IPO India

While next-gen companies like zaggle prepaid IPO, and Yatra Online continued their post-IPO struggles, pharma companies like Jupiter Life and mankind pharma IPO maintained their post-IPO journey with good returns for investors. This proves that the investors are better equipped with knowledge and become more selective while choosing their investment portfolio.

However, it is important to look beyond the initial gains on the listing day. Looking at the above data, many IPOs, although showing strong first-day gains, have lost steam subsequently. Samhi Hotels, for instance, opened 14% higher but currently trades 100% down from its issue price while IREDA stock opens with 87% gain and still trading over 243% from its listing price. Though factors like macroeconomic indicators, market sentiment, and company-specific performance matter a lot after the listing date, you need to understand the company even before investing in that IPO.

What You Need to Learn from IPO India 2023

If you carefully do IPO watch on the data of the IPO India 2023, you will see where the QIB portion has filled above 25 times, those IPOs performed very well. IREDA IPO is the best performer in IPO India 2023 and beyond with 243% as of December 2023. While I looked at the data carefully, the QIB portion of the IREDA IPO was subscribed while the retailed portion was subscribed only 3.3 times, and the HNI portion 6 times.

The QIB portion of Tata Tech IPO was subscribed 87 times while SBFC finance subscribed 76 times. Hence it is important to observe the QIB portion subscription status after the IPO closed. It is important to note that when QIB (Qualified Institutional Buyers) buy overwhelmingly, the fundamentals of the company are strong. If you are interested in the company to invest, you just need to focus on the technical side to decide about the entry point and exit point.

My experience in IPO watch 2023.

At the initial stage of the IPO cycle, the stock performs well for the first week after listing. Once the euphoria about the company IPO ends, the stock slowly moves downward as the stock moves from weak hands to strong hands, it comes down and consolidates at a point within 2 weeks of listing.

You need to find out those IPOs where the QIB portion was subscribed over 30 times and the stock is consolidating. This is the right stock and the right time to enter into the stock. For example, IREDA stock consolidated for 3-4 weeks after listing before it gives a strong upward move. Another way to enter into these strong fundamental recently listed companies is to enter at the breakout point of the previous high within 4 – 8 weeks of the listing.

Usually, these recently listed stocks are fresh in the market and do not have much supply. If the fundamentals of these stocks are strong, there is a strong possibility that they can give you 2 – 3 times the return or more.

Investor Takeaways for IPO Upcoming

Navigating the Indian IPO landscape requires careful due diligence. Here are some key takeaways for investors:

• Focus on fundamentals: Don’t get swayed by listing-day hype. Analyze the company’s financials, growth prospects, and management before investing. The most important is to look at the subscription of the QIB portion. That gives you an indication of the fundamentals of the company.
• Sectorial trends: Identify sectors with tailwinds, where the current government is focusing, or which sector is likely to do well globally. For instance, the current government is focusing on make-in-India on defense, infrastructure, and pharma. The IPOs related to any node of the supply chain of these sectors would do well. However, you must remember that individual company performance will always be decisive.
• Long-term horizon: Invest with a long-term view, considering post-listing performance and market conditions. If you miss the IPO boat, then observe these companies after listing. Wait for 2-3 weeks to see the performance of the stock. Once the stock settles down, look for opportunities to enter.
• Consult experts: Seek advice from financial advisors who can provide personalized recommendations based on your risk appetite and investment goals.

Final word on IPO watch 2023 and Beyond

While investing in an IPO is rewarding it is not always. You need to understand the company before investing in the IPO. From the performance of IPO India in 2023, it is evident that the market is evolving, driven by technological advancements, sustainability considerations, and government initiatives.

Investors should remain vigilant, conduct thorough research, and stay updated on market dynamics to make informed decisions in this dynamic IPO environment. The year 2023 has set the stage for a new era in Indian capital markets, and the coming years are likely to witness further evolution and innovation in the IPO space.

More Across from our Website

We endeavor to help you to understand different aspects of a company before you invest in the company’s IPO. Learn all company insights for investment in new companies in the Indian share market 2023. To know more information about company insights for investment, business overview of companies for investment, here are some suggested readings on company insights for investment –10 Best IPOs in 2022, Tata Motors Stock Price, Tesla Stock Price Prediction 2025, Highest Dividend paying stocks, 5 best upcoming IPOs in India, Tata Technologies IPO Review.

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