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After a frenzied day-one pop, most IPO superstars often bite the dust

Four of the five most-subscribed initial public offers are down 12-71% over day-one listing gains

IPO
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The average return since their day-one close for the top 20 listings since 2010 is a negative 6 per cent

Samie ModakSundar Sethuraman Mumbai
Mrs Bectors Food Specialities on Thursday became the fourth issue this year to see oversubscription of over 150 times. And a few days earlier, Burger King India was the fifth debutant this year to see its shares soar at least 70 per cent over the issue price.

But if history is anything to go by, very few IPOs have turned out to be good long-term bets. A stock may not hold promise just because it shows a huge day-one pop, data shows. In fact, it is quite the opposite, analysts say.

If one compares the current stock prices of companies that have

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First Published: Dec 19 2020 | 6:10 AM IST

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