I read an article yesterday in Mint newspaper about Matrimony.com planning to launch its IPO soon for Rs.500 Crores. The article compared this planned listing with 4 other Internet/Software technology companies that had their stock market listings in recent times, they were – Info Edge (Naukri), Quick Heal (Anti-Virus), Infibeam (E-Commerce), JustDial (Local Search). I got curious on how these 4 stocks had performed after their public listing. Doing few searches (Can I call four Google searches to be a Research?) I found that:
Only “Info Edge” has produced long-term capital growth for the public investors.
InfiBeam has been performing well, producing three-times growth from its IPO. But it has been in the public market for only a year, we need to wait it out. Many of the New-Age company stocks not only in India, perform spectacularly well for the first year or two, before starting their downward spiral.
Quick Heal, which has been on the market for about 2 years has been going down from early this year.
Just Dial, which was the darling of the analysts in 2014 & 2015 has been on a steady rapid fall ever since.
The above are observations of the figures. The selection of the above four stocks is random. Let me know in comments if you can think of any other IPO that came in Indian Stocks Markets in the last few years.
Disclaimer: I am an Engineer by qualification and have no wisdom on stock markets. My personal investments in the Equity markets are made through popular Mutual Funds.
Also published on Medium.