Frenzy Around Big IPOs: One-Year Returns Show They Aren't Worth The Hype

LIC's was a Rs 21,000-crore IPO, which was subscribed over three times but got listed at an 8.6% discount to the issue price. The one-year return, after the insurance behemoth's stock got listed, works out to -34.8%.

As for Paytm, its Rs 18,300-crore issue got listed at a 9.3% discount. Thereafter, just within one year of listing, the stock shed about 72% of its value.

Vodafone Idea's Rs 18,000-crore follow-on public offer got listed at a premium of 7.3% in April 2024 and has given 13.5% returns till date. Its returns have not been computed, as the FPO is yet to complete one year.

Coal India's Rs 15,200-crore IPO got listed at a decent premium of 18.8%, but gave returns of only 12.2% within one year, which was a bit of disappointment for investors.

Lastly, while Yes Bank's Rs 15,000-crore FPO listed at a 2.5% premium, it has given just 6.1% returns in one year.