Niveshaay IPO Basket

February 15, 2025 | Stock Talks

“IPOs are a great opportunity for investors willing to do the research and hold for the long-term” - Peter Lynch 

Imagine having the chance to invest in companies like Meta, Amazon, or Visa at their IPOs. Sounds like a dream, right? But knowing how IPOs work, you probably wouldn’t have gotten an allotment—classic IPO struggle!

But here’s the kicker: what if missing the IPO wasn’t the real problem? What if buying post-listing and holding through market ups and downs was just as rewarding?

Let’s take Meta (formerly Facebook) as an example. Its IPO price was set at $38, and it listed at $42 in 2012. Fast forward to today, and the stock trades at $687, delivering a staggering 16x return and a CAGR of nearly 25%!

Now, let’s bring this perspective home to India. DMart, Infosys, HDFC Bank—some of the most successful IPOs in Indian markets—have created enormous wealth for investors. But with IPO oversubscriptions hitting record highs, getting an allotment today feels like winning the lottery! Take DMart as an example. It was offered at ₹299 in 2017 and listed at ₹604, a premium of over 100%. Admit it, you would have sold it the very next minute post listing. Today, the stock trades at over ₹4,000, delivering a phenomenal 13x return with a CAGR of nearly 35%! Power of holding!

While IPOs generate a lot of excitement, studies have highlighted that over 70% of Indian IPOs tend to be underpriced initially, delivering positive short-term returns. However, these returns often do not sustain in the long run, especially when benchmarked against broader market indices. With increasing retail participation and record-breaking oversubscriptions, securing an IPO allotment is tougher than ever. But history proves that investors who spot strong companies early and hold them long-term can still build massive wealth.

So, next time you miss out on an IPO allotment, don’t be disappointed—because the real opportunity might just be waiting for you in the secondary market!

Are You Ready for the IPO Boom in India?

The Global IPO Boom: Lessons from China & the USA

As history has shown, when an economy crosses key growth thresholds, capital markets thrive. During the technology boom in the U.S., even at a higher GDP base, per capita income nearly doubled, fueling an explosion of number of IPOs to 2,749. Similarly, during China's economic boom between 2006-2012, when its GDP per capita grew 4x from $2,000 to $8,000, an astonishing 626 IPOs were launched.

Now, it’s India’s time to shine. India is at a pivotal moment in its economic trajectory. Historically, nations like the U.S. and China witnessed explosive economic expansion after crossing the $2,500 per capita GDP threshold. India has now reached this milestone, signalling the beginning of accelerated development driven by:

Structural Reforms that enhance ease of doing business
Demographic Advantages with a young, growing workforce
Rising Disposable Incomes, increasing consumer demand

Entrepreneurship is flourishing, with startups and companies scaling rapidly and aiming for IPOs. This influx of new listings presents a unique opportunity to invest early in companies set to become future industry leaders. With strong macroeconomic fundamentals, a supportive policy environment, and technological advancements, this is the perfect time to capitalize on India’s growth story.

Indian capital markets are deepening, with increasing participation from domestic and global investors. The Association of Investment Bankers of India (AIBI) estimates that over 1,000 IPOs will hit the market in the next two years.

This environment creates opportunities to identify high-growth companies at reasonable valuations, especially in the small and mid-cap segments. By strategically investing in these emerging leaders, one can aim to harness India’s growth momentum and generate long-term value.

How Niveshaay’s IPO Smallcase Can Help You?

At Niveshaay, we are launching a Smallcase portfolio focused on recently listed IPOs.

Why Trust This Approach?

At Niveshaay, we don’t just chase every IPO. We filter through the noise to find businesses with:

✅ Scalability: Companies with the potential to dominate their industries
✅ Strong Industry Positioning: Leaders or disruptors with a clear edge
✅ Visionary Leadership: Founders with proven track records and
✅ Robust Growth Potential with Managed Risks: Not just hype, but sustainable business models

This way, we are not chasing every IPO—we focus on high-quality, growth-oriented companies that promise long-term wealth creation. With Niveshaay, you’re not just relying on luck for an IPO allocation—you’re making an informed investment in companies with real long-term potential. Through our Smallcase, you can bypass these odds and gain exposure to these high-growth companies right after listing.

Don’t Miss Out—Get Started Today!

This is your opportunity to ride India’s growth wave. As a smart investor, it's time to think long-term, just like investing legend Peter Lynch advises. Our curated IPO Smallcase portfolio could be your gateway to wealth creation in this exciting economic phase. Are you ready to invest in India’s future? 🚀

Disclaimers and Disclosures

SEBI Registration No. :INH000017338, IN/AIF3/24-25/1571, IN/AIF2/24-25/1607 | BASL Membership ID: 6276

Investment in Securities Market are subject to market risks. Read all related documents carefully before investing. The securities quoted are for illustration only and are not recommendatory. Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.