While the Indian market is touching new lows every day and investors’ portfolios are in the red, more than half of the IPOs listed in the past year are trading below their allotment price. However, there are some IPO stocks that are rallying even in this declining market. Here are five such stocks compiled by IPO Central that have delivered up to 20% returns in the past month compared to their prices a month ago.
1. DOMS Industries
DOMS Industries IPO was oversubscribed with a 93.40x subscription. The INR 1,200 crore issue size delivered 67.85% returns on the listing day. The DOMS Industries IPO turned into a multibagger IPO and delivered impressive 286% returns in one year of listing. The company has strong fundamentals, brand presence, and rising demand that’s fueling the growth.
- Past 30-Day Performance: Up 14.65%
- CMP: INR 2,545 per share
- Sector: FMCG – Stationery
2. Inventurus Knowledge Solutions
Despite the market falling, Inventurus Knowledge Solutions has managed to sail the wave. IKS also got an overwhelming response from the investors the issue was subscribed to 52.6 times. The issue size was 2,497.92 crore which was completely an offer-for-sale. The IPO was listed at 47.45% up from the issue price. The stock has closed in the green in the last 7 days fuelled by the strong Q3 results, rising demand for IT-enabled healthcare solutions, and attractive price of shares.
- Past 30-Day Performance: Up 20.04%
- CMP: INR 1,915 per share
- Sector: IT Enabled Services
3. Global Health (Medanta)
In times of economic slowdown, defensive sectors such as healthcare tend to outperform. Global Health (Medanta) has benefited from increased patient volumes, expansion into Tier-2 and Tier-3 cities, and a rise in medical tourism. Medanta IPO made its debut on 16 November 2022. IPO got a positive response and the issue was subscribed 9.5 times. Medanta was listed with a premium of 23.60%. Post-issue IPO printed a stellar performance and delivered 3X returns.
- Past 30-Day Performance: Up 19.07%
- CMP: INR 1,212 per share
- Sector: Healthcare – Hospitals
4. Ami Organics
Ami Organics launched its IPO on 14 September 2021. The issue was listed at 53.28% up from the issue price. Ami Organics issue was over-subscribed 64.5 times. Ami Organics is capitalizing on the rising demand for speciality chemicals and APIs. With a strong order book and aggressive expansion into global markets, the company remains a favourite among investors looking for stability amid market downturns.
- Past 30-Day Performance: Up 20.16%
- CMP: INR 2,290 per share
- Sector: Pharmaceuticals
5. KRN Heat Exchanger
KRN Heat Exchanger made its market debut on 3 October 2024. The IPO was massively oversubscribed 211.7 times and delivered multibagger 117.63% returns on listing day. The industrial manufacturing sector has been resilient, and KRN shares benefitted from increasing demand for energy-efficient heat exchangers. The company’s strong order book, and fundamentals keep fuelling the rally.
- Past 30-Day Performance: Up 20.60%
- CMP: INR 888 per share
- Sector: Capital Goods – Industrial Products
Why Are These IPOs Rising When the Market Is Falling?
The broader market is facing headwinds from interest rate concerns, global economic uncertainty, and sectoral slowdowns. However, these IPO stocks are thriving due to a combination of:
Strong Sectoral Tailwinds: Defensive sectors like healthcare and pharmaceuticals are in demand. Robust Fundamentals: Companies with solid revenue growth and expansion plans are attracting investors. Post-IPO Optimism: Many of these stocks debuted at attractive valuations and continue to outperform expectations. Institutional Backing: High QIB (Qualified Institutional Buyers) participation has provided stability in volatile times.
Final Thoughts
Market are cyclical in nature after every strong movement there comes a correction. However, market correction presents an opportunity for fair price discovery. Investors should invest in IPOs with the better fundamental’s and business model. Corrections are temporary and the market may rise again. Investors who are looking for stability amid the ongoing chaos in the market may look these IPO stocks as investment opportunity. However, as always, caution and thorough research are key before making any investment decisions.
Disclaimer: The data on 30-day performance is subject to updates. Investors are advised to do their due diligence before making any financial decisions.