New Delhi: The primary market has emerged as the cash cow for investors in 2019, amid high volatility in the secondary market, as 70% of the new entrants are trading well above their issue prices, giving returns of up to 95% to shareholders.
Several factors including trade conflict between the US and China, slowdown in the economy, poor investor sentiment and pullout of funds by foreign investors have kept the market volatile, experts said.
They further said that despite the volatility, there is always demand for good initial public offerings (IPOs).
Out of 11 companies that got listed in 2019, as many as eight have registered smart gains ranging from 7 to 95% against the price at which they had issued shares to investors;
while the rest three firms have failed to attract investors and are quoting below their issue price, an analysis of the stock performance of the newly-listed firms as of October 4 showed.
