Multibagger stocks: Rhetan TMT, Jayant Infratech among 2022 debutants that zoomed up to 590% from listing price
Data from AceEquity shows that 93 companies launched their initial public offers (IPOs) in 2022 to raise nearly Rs 57,000 crore. Notably, 2021 proved to be the best ever to date in terms of cumulative fundraising by way of IPOs. For the first time ever, more than Rs 1 lakh crore was raised in a single calendar year.
If you look at the performance of Indian equity benchmarks in 2022, Sensex gained 2,587 points or 4.44 per cent and Nifty climbed 751 points or 4.33 per cent. The markets were volatile amid recessionary fears, geo-political tensions, rupee depreciation and FIIs outflows.
However, among the 93 stocks that hit the Street in 2022, 6 stocks have delivered multibagger returns to their investors. These stocks have zoomed up to 590 per cent from their listing price.
According to Manish Khanna, Co-Founder, Unlisted Assets, the momentum seen was only in smaller sized IPOs and not in mainboard IPOs given the absence of sustained interest by foreign institutional investors. In comparison to SME IPOs, the number of mainboard issuances was significantly low in 2022 with only 40 IPOs hitting the market and raising Rs 59,939 crore.
In 2022, he said most active industries were consumer and retail goods, diversified industrial products, and technology, with 11, 9 and 8 IPOs launched, respectively. In the Small and Medium Businesses segment, there were 34 IPOs in Q4 2022 as opposed to 33 IPOs the previous quarter.
Let’s take a look at the best-performing debutants so far.
1) Rhetan TMT Ltd.
Listing price: Rs 70
Listing date: September 5, 2022
Latest price: Rs 484
Return: 591%
Rhetan TMT, which was listed on September 5, 2022, remained the top-performing IPO, with a return of over 590 per cent since listing. Recently, the company announced 11:4 bonus shares and a 1:10 stock split.
Rhetan Rolling Mills Private Limited is a company based in Ahmedabad, Gujarat was incorporated on 26th January 1984. It is actively engaged in the manufacturing of TMT Bars confirming ISI Standards.
2) Jayant Infratech Ltd.
Listing price: Rs 76
Listing date: July 13, 2022
Latest price: Rs 382.35
Return: 403%
Jayant Infratech stock has delivered over 403 per cent return to its shareholders since listing. This company also announced a 2:1 bonus issue in January 2023.
Jayant Infratech’s major work encompasses the electrification of new and existing Railway tracks. The services include the concept of commissioning Railway Infrastructure from design to energization.
3) Veerkrupa Jewellers Ltd.
Listing price: Rs 27
Listing date: July 18, 2022
Latest price: Rs 102.10
Return: 278%
Shares of Veerkrupa Jewellers, an SME-listed smallcap jewellery company, have delivered over 278 per cent return to its shareholders since listing.
In February 2023, the company board considered and approved the issue of bonus shares in a 2:3 ratio. This means that all eligible shareholders will get two bonus shares for every three shares held by them as of the given record date, which will be announced later.
Along with this, Veerkrupa Jewellers’ board has also approved the sub-division of equity shares in 1:10. It implies that every share of the company with a value of Rs 10 each will be divided into 10 equity shares of Re 1 each.
Veerkrupa Jewellers is engaged in the jewellery business including the sale of silver, gold, studded and other jewellery products including diamond, platinum and other precious and semi-precious stones. The company has two showrooms in Narol and Naroda (Gujarat).
4) Containe Technologies Ltd.
Listing price: Rs 22
Listing date: September 30, 2022
Latest price: Rs 70.5
Return: 220%
Containe Technologies stock has zoomed over 220 per cent from the listing price of Rs 22. The company has a monthly installed production capacity of 30,000 Speed Limiting Device units and 30,000 Vehicle Location Tracking Device units.
5) Maruti Interior Products Ltd.
Listing price: Rs 68.5
Listing date: February 16, 2022
Latest price: Rs 174.30
Return: 154%
Shares of Maruti Interior Products have zoomed over 150 per cent since listing. The company is the manufacturer and exporter of high quality and durable range of Solid Base Vertical Storage, Solid Base Corner Storage, Solid Base Drawer Pull Outs, Kitchen Cabinets and Wire Base Midway Storage.
Recently, Asia Index Pvt Ltd said Maruti Interior Products would be removed from the S&P BSE IPO (initial public offering) index. Asia Index is a 50:50 partnership between S&P Dow Jones Indices LLC and India’s BSE.
6) Venus Pipes & Tubes Ltd.
Listing price: Rs 335
Listing date: May 24, 2022
Latest price: Rs 719.80
Return: 115%
Lastly, Venus Pipes & Tubes stock has also managed to deliver over 115 per cent return to its shareholders since its listing. Experts believe that the stock may see further upside because of the expansion of product offerings by the pipe maker and favourable government policies.
Venus Pipes & Tubes is a manufacturer and exporter of stainless steel pipes and tubes, in two broad categories- seamless tubes and pipes; and welded tubes and pipes.
Outlook 2023
Talking about 2023, Khanna noted that the onset of 2023 with the Hindenburg Report claiming irregularities in Adani’s business leading to the massive decrease in investors’ wealth has severely affected the investors’ sentiments and this may impact the investors’ participation in upcoming mainboard IPOs.
“Although, SME IPOs have been trending in the market and IPOs of companies looking out to raise funds between Rs. 500-1000 crores are sailing through using domestic participation. However, big-ticket size IPOs aiming to raise more than 1000 crores are deferring IPOs waiting for foreign investor participation,” he said.
“While the dates of most IPOs have not yet been finalized considering the global scenario, in Q4 of 2022, more than ten companies submitted their Draft Red Herring Prospectus (DRHPs), indicating that 2023 may be more promising. Although the upcoming IPOs are dependent on the settlement of global issues like Inflation & Russia-Ukraine War, the attractive pipeline of anticipated IPOs for 2023 appears optimistic. Some big IPOs expected to be rolled out in 2023 include Tata Technologies, Oyo, Boat, Ixigo, Mobikwik, and Swiggy,” Khanna added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
