Heavily Subscribed IPOs Turn Negative: A Reality Check for Investors

In recent months, several IPOs saw massive subscriptions, creating huge excitement among investors. However, post-listing, the reality has been quite different. Many of these heavily subscribed IPOs are now trading below their issue prices, leaving investors with losses.

This highlights an important lesson: IPO allotment is not always a jackpot.

IPOs Currently Below Issue Price

1. Gem Aromatics
   • Issue Price Band: ₹309 – ₹325
   • Current Performance: -28.0%
2. Mangal Electricals
   • Price Band: ₹533 – ₹561
   • Current Performance: -14.9%
3. VMS TMT
   • Price Band: ₹94 – ₹99
   • Current Performance: -13.6%
4. Regaal Resources
   • Price Band: ₹96 – ₹102
   • Current Performance: -12.8%
5. Ganesh Consumer
   • Price Band: ₹306 – ₹322
   • Current Performance: -8.7%
6. Ivalue Infosolution
   • Price Band: ₹284 – ₹299
   • Current Performance: -4.5%
7. Saatvik Green
   • Price Band: ₹442 – ₹465
   • Current Performance: -3.9%

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Key Lessons for Investors

• Subscription ≠ Profit: Oversubscription does not guarantee strong returns.
• Valuation Matters: Many companies list at expensive valuations, increasing the risk of correction.
• Short-Term Volatility: IPO stocks often witness high fluctuations in the initial weeks.
• Do Your Homework: Instead of following hype, investors should study the company’s fundamentals before applying.

👉 The clear takeaway is that IPOs should be approached with caution and viewed as part of a long-term investment strategy, not just a quick profit opportunity.

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