The year 2017 has been the year of IPOs in the stock market with a total of 24 companies having raised Rs. 37000 crore and many listed stocks have managed to provide 100% or more yield in comparison to issue price. The run up to investor gains from IPO in 2016-17 has continued in the current FY and infact is even more pleasing given the enormous listing gains. Here are few IPO stocks that provided over 100% returns this FY.
Salasar Techno Enginnering
The construction major IPO with a issue price of Rs. 108 listed on the bourses with a huge gain of 140% at Rs. 259.15. The company is seen last trading at 278.15 which is a good gain over its listing price. So, the return on the stock citing current valuation is 157%. With a huge subscription to the stock, the IPO proved to be highly lucrative for investors.Check Salasar Techno Enginnering stock quote here
The depository that came up with its IPO in the month of June at a price of rs. 149 was last trading at Rs. 374.70 on the NSE. The stock is not listed on the BSE. This means a good return of 151%. The company reaps steady profit gains and high economies of scale Check CDSL stock quote here
Apex Frozen Foods
With a product pipeline to niche segment and specialization, the IPO issue also provided handsome gains for investors which listed at 14% higher price of Rs. 199.9 as against issue price of Rs. 175. The stock was last seen trading at Rs. 416.50 on the BSE, a return of 138%.Check Apex Frozen Foods stock quote here
Experts suggestion for IPO stocks that have surged 100% or more in value
Valuations for these IPO stocks are expected to gain in ground in the near term and experts suggests that investors shall be better off by either partially booking the gains and partially holding them for a longer term. The tenet holds true for issues that have managed to yield a high gain of 100% or more for investors in comparison to the IPO issue price.
Further, all the positive fundamentals for the stock together with their capabilities in the segment are taken account into the price, so correction is only expected with no further huge gains. However, if you have a higher risk appetite with no liquidity concerns, you can still continue with these stocks in your portfolio.