The Economic Times
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| 28 May, 2021, 08:55 AM IST | E-Paper
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    What's powered solid listing gain in recent IPOs

    Synopsis

    Last fiscal, 21 out of 29 IPOs generated positive returns for investors on listing. IPO listing returns of 36% in FY21 were the highest in a decade, fuelled by an average oversubscription rate of 71.3 times of IPO issue size, the central bank said in a study.

    Mumbai: Gains from newly-listed stocks are mainly linked to high subscriptions, overriding other IPO characteristics such as age, share-sale size, leverage, growth, profitability and valuation indicators of the company. Last fiscal, 21 out of 29 IPOs generated positive returns for investors on listing. IPO listing returns of 36% in FY21 were the highest in a decade, fuelled by an average oversubscription rate of 71.3 times of IPO issue size,
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