Are large IPOs in India less profitable long-term?

Anoop Vijaykumar notes that 50% of IPOs have beaten benchmark returns, but large IPOs often disappoint long-term. These large IPOs typically launch when the index is performing well for 1-2 years, leading to growth moderation and significant price corrections post-listing.

Why do large IPOs underperform compared to smaller ones?

Large IPOs often face growth moderation after listing, as highlighted by Anoop Vijaykumar. The article states that these IPOs see 'huge price correction' following their listing, suggesting market adjustments and reduced future returns compared to smaller IPOs.

CNBC-TV18 Interview: Anoop on how large IPOs have not been lucrative for investors in India

50% of IPOs have beaten benchmark returns but Larger IPOs have disappointed w.r.t. long term returns' says Anoop Vijaykumar, Investments & Head of Research, Capitalmind Financial Services. Tells Sonal Bhutra & Reema Tendulkar that large IPOs come out when index is doing good for 1-2 years so growth moderation, post listing, for these large IPOs, see significant price correction

11 Nov 2024Anoop Vijaykumar1 min read

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Are large IPOs in India less profitable long-term?: Anoop Vijaykumar notes that 50% of IPOs have beaten benchmark returns, but large IPOs often disappoint long-term. These large IPOs typically launch when the index is performing well for 1-2 years, leading to growth moderation and significant price corrections post-listing.
Why do large IPOs underperform compared to smaller ones?: Large IPOs often face growth moderation after listing, as highlighted by Anoop Vijaykumar. The article states that these IPOs see 'huge price correction' following their listing, suggesting market adjustments and reduced future returns compared to smaller IPOs.

50% of IPOs have beaten benchmark returns but Larger IPOs have disappointed w.r.t. long term returns’ says Anoop Vijaykumar, Investments & Head of Research, Capitalmind Financial Services. Tells Sonal Bhutra & Reema Tendulkar that large IPOs come out when index is doing good for 1-2 years so growth moderation, post listing, for these large IPOs, see’s huge price correction