New-Age IPOs of 2024: A Mixed Bag, but Better Than 2021

The wave of new-age IPOs that hit the Indian stock market in 2024 has been under scrutiny. Investors, burnt by the sharp declines in high-profile listings from 2021 like Paytm and CarTrade, were watching closely to see if history would repeat itself. While it’s still early days, the numbers suggest that this batch has done relatively better, albeit with its share of disappointments.

How Have the 2024 IPOs Fared So Far?

A total of 11 new-age IPOs entered the market this year, raising ₹39,135 crore collectively. Some names, like Blackbuck (Zinka Logistics) and TBO Tech, have rewarded investors handsomely, while others, like Ola Electric and Swiggy, have stumbled.

• If an investor had been allotted one lot of shares in each of these IPOs, their portfolio would have seen a marginal loss of -0.55%.
• Seven out of the 11 stocks are trading above their issue price, while four remain in the red.
• The average return across all IPOs stands at 23.03%. However, this figure can be misleading, as the better-performing IPOs tend to be smaller.

The biggest takeaway? Unlike the disastrous batch of 2021, this group hasn’t uniformly tanked.

Winners and Losers: Who Stood Out?

Some companies have stood out for their strong market performance, while others have struggled to stay afloat.

• Top performers:

  • TBO Tech leads the pack with a return of 75.65% since listing.
  • Blackbuck (Zinka Logistics) isn’t far behind, gaining 70.33%.
  • Awfis Space Solutions has also delivered a solid 67.11% return.

• Underperformers:

  • Ola Electric Mobility has been the biggest loser, down 19.93% from its issue price.
  • Swiggy and First Cry have also disappointed, with returns of -12.41% and -12.00%, respectively.
  • NTPC Green Energy has been relatively stable but remains 1.20% below its issue price.

Despite some weak showings, the overall landscape looks far healthier than in 2021, when most stocks plummeted after listing.

Volatility: The Swing Factor

While point-to-point returns are one way to measure performance, another key metric is how far these stocks have fallen from their 52-week highs. A sharp drop from peak levels can indicate extreme volatility and investor uncertainty.

• Seven out of the 11 IPOs are trading 30% or more below their highest price of the year.
• Ola Electric has seen the most brutal correction, plunging 61.34% from its peak.
• Even winners like One MobiKwik Systems and Unicommerce E-Solutions have seen 53.60% and 55.30% declines, respectively, from their highs.

This suggests that while some stocks have delivered solid returns, many have struggled to maintain momentum after their initial gains.

The Combined Score: Best and Worst IPOs

To get a clearer picture, let’s combine two critical factors: returns since listing and the swing factor (proximity to the 52-week high). The rankings below show which IPOs have performed best when considering both measures.

From this combined ranking, Blackbuck (Zinka Logistics) and TBO Tech emerge as the strongest IPOs of 2024 so far, while Ola Electric and Swiggy rank at the bottom.

What’s Different This Time?

If 2021’s IPOs were a cautionary tale, 2024’s batch offers a glimmer of hope. The fundamental difference seems to be investor sentiment and market conditions.

1. Better Pricing Strategies – Many IPOs in 2021 were aggressively priced, leaving little room for post-listing gains. This time, valuations have been more reasonable.
2. Improved Business Models – Some of these companies, like TBO Tech and Blackbuck, have demonstrated stronger financials, making them more attractive to investors.
3. Macroeconomic Stability – The stock market has remained relatively resilient in 2024, helping IPOs hold their ground better than three years ago.

That being said, volatility remains high, and many stocks have struggled to sustain their peaks. But at least this isn’t another 2021 bloodbath.