Multibagger IPO: Investing in an Initial Public Offering (IPO) is like investing in a business. Like investing in stocks, one needs to scan the financials of the company offering its shares in the primary market. Like intraday stock market traders, a good number of primary market investors invest in an IPO and exit immediately booking listing premiums. However, a smart investor is advised to maintain the same ‘buy, hold, and forget’ while investing in an IPO as well.
To understand, how a long-term IPO investor can gain on one’s investment, one needs to look at the Phantom Digital Effects IPO. The NSE SME issue was launched at a price band of ₹91 to ₹95 per equity share in October 2022. The SME stock listed on the BSE SME exchange at ₹300 apiece level on 21st October 2022, delivering a whopping 200 per cent return to the lucky allottees. However, the SME share didn’t end here only. The small-cap stock surged further and ended at ₹312.70 apiece level on the listing date. For a short-term investor, this over 200 per cent return on one’s investment in less than a month was enough luring to book profit and exit. however, for a long-term investor, holding the scrip turned out more soothing as the stock went on to touch a lifetime high of ₹593.45 after listing at a stellar premium.
Also Read: Baweja Studios IPO: Price band set at ₹180-190; check other issue details
Phantom Digital Effects share price is currently oscillating around ₹460 per share level, which is more than 350 per cent from the upper price band of its IPO price.
₹1.14 lakh turns to ₹5.52 lakh
The SME IPO had a lot size of 1200 company shares and a bidder was allowed to apply in lots. So, a retail investor was allowed to apply for the IPO with a minimum amount of ₹1.14 lakh ( ₹95 x 1200). Today Phantom Digital Effects share price is around ₹460 apiece. This means, that if an allottee had remained invested in this SME stock despite strong listing gain, its ₹1.14 lakh would have turned to ₹5.52 lakh today [{460/95) x 1,14,000}].
Also Read: Nuvama Equities raises target price on Reliance Industries, sees 14% upside
Thus, if an allottee had remained invested in this SME stock despite a whopping listing premium throughout the period, its ₹1.14 lakh would have turned to ₹5.52 lakh in the last 15 months. In other words, this SME IPO is one of the multibagger IPOs that the Indian stock market has delivered in the last 15 months.
Phantom Digital Effects news
The leading VFX studio is in news for the success of sci-fi phenomenon “Ayalaan.” Released on January 12, 2024, the film has not only captured the hearts of audiences worldwide but has also redefined the standards for the Indian film industry. The film’s extraordinary success is attributed to its groundbreaking visual effects (VFX) and computer graphics (CGI), setting a new standard for the Indian film industry.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 18 Jan 2024, 01:19 PM IST