As investors chase companies running niche businesses and newly launched public companies the S&P BSE IPO Index, has risen more than three times the amount of the S&P BSE Sensex Index this year.
Crux of the Matter
India Mart, IRCTC, Metropolis Healthcare Ltd are among 11 companies that went public this year.
IRCTC more than doubled on its debut which ranks as the best listing in two years. It is due to its monopoly over the Indian Railways.
IndiaMart the country’s largest online platform for businesses has been trading 78% higher than its July IPO.
Metropolis Healthcare Ltd. soared more than 60% from its offer price in April.
It has been a rough ride for the Sensex, which had hit a six-month low in mid-September amidst a slow-moving economy.
Curiopedia
Initial Public Offering (IPO) is the first time that the stock of a private company is offered to the public and IPOs are often issued by younger, smaller companies seeking capital to expand, but they can also be done by large privately-owned companies. After the IPO, shares are traded freely in the open market. Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with the process such as banking and legal fees, and the ongoing requirement to disclose important and sometimes sensitive information. Details of the offering are disclosed to potential purchasers in the form of a document known as a prospectus. More Info
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