LIC IPO – the most important public problem in India’s share market – opened for subscription as we speak, with a plan to boost as much as Rs 21,000 crore. LIC public problem has opened amid investor euphoria, with establishments and people seemingly eager on getting a slice of the overvalued IPO. However, greater doesn’t essentially imply higher; in actual fact, going by historical past, the most important of the general public share points have solely destroyed investor wealth over time.
In 4 of the final 5 largest IPOs, each non-public and PSUs, buyers have misplaced practically as much as their whole investments. Investors in Paytm (One97 Communications), Reliance Power, Coal India Ltd, and General Insurance Corporation have misplaced 20-97% of their unique investments in these public points. On the opposite hand, whereas SBI Card and Payment Services inventory is in inexperienced since its problem two years in the past, it has massively underperformed the benchmark indices.
As LIC IPO opens as we speak, right here’s a have a look at 5 largest public points to this point and the way they’ve fared
One97 Communications (Paytm):
Share worth down 72.04% since IPO 6 months in the past
Issue worth: Rs 2,150
Current worth: Rs 601
IPO date: November 2021
Issue dimension: Rs 18,000 crore
The preliminary public providing of Paytm dad or mum One97 Communications opened for subscription final yr in November, and noticed 1.89 instances subscription, led by QIBs and retail buyers. Paytm inventory has not fared effectively publish itemizing. Its all-time excessive was on the itemizing day itself at Rs 1,955, whereas its all-time low is at Rs 521.
Share worth down 23.6% since IPO 11 years, 6 months in the past
Issue worth: Rs 245
Current worth: Rs 187
IPO date: November 2010
Issue dimension: Rs 15,199 crore
Coal India raised Rs 15,199 crore in what was India’s largest preliminary public providing of shares on the time. The State-run miner is the world’s largest coal miner. Coal India shares debuted on inventory exchanges in November 2010. Its all-time excessive was Rs 447, whereas its all-time low is at Rs 109.
Share worth down 96% since IPO 14 years, 3 months in the past
Issue worth: Rs 450
Current worth: Rs 14
IPO date: January 2008
Issue dimension: Rs 10,123 crore
Helped by buyers’ religion within the household’s title on account of the group of firms arrange by Anil Ambani’s father, tycoon Dhirubhai Ambani, Reliance Power IPO garnered good response from buyers. The IPO was offered between January 15 and January 18 of 2008 and was subscribed about 70 instances. Apart from having fun with the standing of the ‘biggest IPO ever’ title at the moment, this problem had one other distinction. It was subscribed throughout the first couple of minutes of its book-building course of. Reliance Power shares hit an all-time excessive of Rs 530 and all time low of Re 1 per share.
General Insurance Corporation of India
Share worth down 85% since IPO 4 years, 6 months in the past
Issue worth: Rs 912
Current worth: Rs 133
IPO date: October 2017
Issue dimension: Rs 11,256 crore
The IPO of the reinsurer which was opened throughout October 11-13, 2017, was oversubscribed 1.38 instances. General Insurance Corporation of India shares listed at a reduction on bourses. While the inventory has rallied 10% within the final one month, it has plunged 68% within the final 5 years. Currently, General Insurance Corporation of India shares hit an all-time excessive of Rs 899 and all time low of Rs 81.5 per share.
SBI Cards & Payment Services:
Share worth up 8.6% since IPO 2 years, 1 month in the past
Issue worth: Rs 755
Current worth: Rs 820
IPO date: March 2020
Issue dimension: Rs 10,341 crore
The firm, owned by India’s largest lender the State Bank of India raised Rs 10,341 crore from the general public problem. This IPO was a giant draw amongst buyers in 2020. The problem was offered between March 2 and March 5, and garnered 26.54 instances subscription. SBI Cards and Payments inventory hit an all-time excessive of Rs 1,165 and all time low of Rs 495 apiece.