Up to 350% rally this year! These newly listed stocks delivered robust returns in 2024. Own any?

Select initial public offerings, which hit the main bourses or SME exchanges during the first half of 2024, delivered solid returns to investors amid the ongoing rally in the domestic equity market. Vruddhi Engineering Works is the top gainer on the list. Shares of the company have rallied 347% to Rs 313.20 on June 20 against the issue price of Rs 70. The company made its debut on the BSE SME exchange on April 3, 2024. 

With a rally of 311%, another SME player KP Green Engineering is next on the list. Shares of the company, which hit the bourses in March 2024, traded at Rs 592.20 on June 20, 2024 against the issue price of Rs 200. On the other hand, the benchmark BSE Sensex gained nearly 7% on a year-to-date basis.

Sharing his views the SME space, Amit Kumar, Founder & CEO, MSMEx said, “While following a long-term investment approach, one should zero in on growth-oriented founders and focus on business metrics in the SME space.  We are positive on sunrise and technology sectors.”

Jyoti CNC Automation, which listed on bourses in January 2024, has gained more than 304% to Rs 1337.65 at present against the issue price of Rs 331. Incorporated in the year 1991, the company is one of the world’s leading manufacturers of metal-cutting computer numerical control (CNC) machines. 

Data further highlighted that Exicom Tele-Systems, Shri Balaji Valve Components, Rudra Gas Enterprise, Greenhitech Ventures, Storage Technologies & Automation, Pune E-Stock Broking, BLS E-Services, Manoj Ceramic have also gained more than 100% over their issue price. These companies also got listed on bourses during the first half of 2024.

Market watchers believe that the primary market will continue to prosper in India. Mahavir Lunawat, Managing Director, Pantomath Capital Advisors said, “With a strong domestic economy, a thriving stock market and increasing involvement from retail investors, the country is poised for a massive surge in the IPO market. We are on the brink of sustained, long-term momentum in the IPO market, with this year potentially becoming the best for IPOs.”

“So far, India’s solid macroeconomic environment and promising growth prospects create an ideal backdrop for this vibrant IPO market. Additionally, there is robust participation from both domestic institutional investors and retail investors,” Lunawat said.

Among the other major gainers, Bharti Hexacom, JNK India, Royal Sense, Shree Marutinandan Tubes, Emmforce Autotech, Le Travenues Technology and Jana Small Finance Bank have gained somewhere between 75% and 100% so far against their respective issue price.

Data showed that over 15 companies have received Sebi approval for the IPOs to garner more than Rs 10,000 crore from the primary market. Furthermore, up to 40 companies have submitted their papers to the market regulator to initiate IPOs, aiming to collectively raise over Rs 50,000 crore.

According to primedatabase.com, SPC Life Sciences, Fincare Small Finance Bank, Western Carriers (India), Onest, Shiva Pharmachem, Indo Farm Equipment, Arkade Developers, Denta Water & Infra Solutions and Vraj Iron & Steel are among the companies which have received the regulators’ approval or about to launch their IPOs soon. According to BSE, the public offer of Vraj Iron & Steel is set to open for subscription on June 26.