Hyundai Motor India is preparing to launch the country’s largest IPO, valued at ₹27,870 crore, next week. While it’s uncertain if this IPO will generate profits for investors, past performance of major Indian IPOs reveals mixed results regarding returns.
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Several high-profile IPOs, including Paytm and Reliance Power, have disappointed investors by trading below their issue prices since their listings. Government-backed entities like GIC and New India Assurance also failed to deliver significant returns, with many investors facing losses.
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Notably, Reliance Power, which debuted in 2008, has plummeted 83% from its issue price. Paytm, originally priced at ₹2,150, now trades around ₹739 per share, reflecting a decline of about 65%, highlighting the risks associated with these investments.
In contrast, some IPOs have proven successful. Coal India, which raised ₹15,200 crore in its 2010 IPO, currently trades at a 100% premium, showcasing its strong market performance and investor confidence in government-backed companies.
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DLF, which launched its ₹9,187 crore IPO in 2007, initially thrived during the real estate boom but struggled after the global financial crisis in 2008. Despite challenges, it remains a notable example of an influential IPO.
Zomato’s IPO was initially met with scepticism due to its loss-making status. However, after a significant correction, its stock rebounded and now trades at around ₹280, marking it as a significant multi-bagger for investors and illustrating the potential for recovery in the IPO market.
