Missed the Bajaj Housing IPO boat? There’s still time to get on board.
Subscribe to enjoy similar stories. Bajaj Housing Finance’s bumper listing today (16 September) might leave many investors feeling pangs of regret. The stock debuted at ₹150 per share, a staggering premium of 114% over its issue price of ₹70 apiece, possibly igniting a wave of FOMO (fear of missing out) among those who were unable to secure allotments in the company’s initial public offering (IPO).
But ‘missing out’ and having a ‘wait and watch’ approach may not always be bad. Mint’s analysis shows you would be better off investing six months or a year after listing than trying to tap the listing day frenzy. To gauge India’s current IPO boom, look no further than 2021, a year of record-breaking fundraising when investors went wild for new offerings.
It’s a benchmark the market is still trying to eclipse. Of the 46 stocks that were listed at a premium over their issue price in 2021, 67% have delivered positive returns for investors who waited a year before buying. Many of these stocks have significantly outperformed since listing (based on adjusted prices as some companies have since issued stock splits or bonuses).
About 65% of the stocks would have delivered gains if you had waited for six months post listing to buy them. In 2021, 64 stocks were listed, of which 46 (or 72%) debuted on a premium, and 14 are seeing an impressive gain of at least 50% over the issue price. This year, nearly 80% of the 51 stocks listed so far have debuted on a premium.
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