Investing in mega IPOs: What the Data Shows
The recent ₹27,000 crore Hyundai IPO, the largest ever in Indian public markets, has put the spotlight on investing in initial public offerings. With companies raising over ₹5 lakh crore via share sales since 2023, and a record number of IPOs hitting the market, many investors are wondering if mega-IPOs deliver strong returns. We analyzed historical data on the top 40 Indian IPOs by size, examining factors like offer size, industry sector, price returns and total returns including dividends. The results may surprise you – while some IPOs like Zomato and Sona BLW Precision Forgings have outperformed, most of the largest IPOs have failed to beat the broader CNX 500 index, with some like Reliance Power even delivering negative returns. Before investing in the next hot IPO, learn what the data shows about the risks and rewards.