IPO is one of the great ways to build long-term wealth. However, it is important to analyse the company well before investing. This is because not all IPOs may succeed. Thus, one should do a self-study to pick the best IPOs with great potential.
The below data depicts the amount of wealth created by the SME IPOs IPOs over time. It shows the number of SME IPOs IPOs issued in a year and compares the market capitalisation (cap) of these SME IPOs IPOs at the time of issue with the current market cap. The difference between these two market caps represents the wealth created by investors from the issue date till now.
Thus, one should assess one's financial goal whether one wants to make quick profits on listing and take an exit or take the risk and stay invested to generate wealth.
Note: Three prices are taken into account in this report:
The wealth creation is derived using below formula:
The information presented in this report is based on historical data from SME IPOs and includes the following key figures, with specific conditions to ensure accuracy:
Amount Raised (Rs) = Sum (Issue Size)
Total Market Cap (IPO) (Rs Cr) = Sum (Post-issue Shareholding * Issue Price Final)
Market Cap w.r.t. Listing Day Close Price (Rs Cr) = Sum (Post-issue Shareholding * Listing Price Close Price)
Current Market Cap (Rs Cr) = Sum (Post-issue Shareholding * Current Price)
Wealth Created (Rs Cr) = Sum (Current Market Cap (Rs Cr) - Amount Raised (Rs))
Listing Day Gain (%) = Average ((Market Cap w.r.t. Listing Day Close Price - Total Market Cap (IPO) / Total Market Cap (IPO)) * 100)
Wealth creation w.r.t. Listing Day Close Price (%) = Average ((Current Market Cap - Market Cap w.r.t. Listing Day Close Price / Market Cap w.r.t. Listing Day Close Price) * 100)
Wealth Created (%) = Average ((Current Market Cap - Total Market Cap (IPO) / Total Market Cap (IPO)) * 100)
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