Best year for IPOs leaves investors high and dry

An analysis of post-listing performances of new paper issued via IPOs this year shows investors would have been better off betting on listed stocks

Ace investor Rakesh Jhunjhunwala prefers picking shares from the secondary market rather than applying in initial public offerings (IPOs).

The rationale behind this investment thesis is that IPOs often come at lofty valuations when the market sentiment is buoyant, leaving little gains on the table for investors. This investment strategy ties in with the experience of 2017, when the capital issued by way of initial public offerings (IPOs) has been the highest ever at Rs 66,169 crore (over $10 billion), surpassing the previous record of Rs 37,535 crore in 2010. 

An analysis of post-listing performances of new paper issued via IPOs this