Multibagger IPO: For a stock market investor, it is often said that money is not in buying and selling stocks but in waiting. This rule also applies to an IPO (Initial Public Offering) investor. If a primary market investor is convinced about a company's business prospects, then irrespective of size, one should stick with one's conviction and hold the stock as long as possible.
An IPO investor is advised to keep the stock (also known as 'scrip ') as long as possible to create wealth on the premium the company's promoters have offered its investors in the primary market. So, by holding a stock for a long term after share allocation, an allottee enjoys the benefit of wealth creation. This wealth creation becomes possible due to the money earned through the stock holdings earned on investors' behalf in the long term.
To truly grasp the potential for wealth creation through long-term investment, let's delve into the inspiring journey of AVP Infracon. The multibagger SME IPO was launched in March 2024 at a price band of ₹71 to ₹75 per equity share. The SME IPO was proposed for listing on the NSE Emerge platform. The SEM stock was listed on 20th March 2024. The stock had a flat listing at ₹79 apiece. However, after making the list of shares, the NSE SME stock witnessed strong buying buzz. The NSE SME stock is currently available at around ₹175 apiece, ₹100 above its upper price band of ₹75 apiece. This means the SME stock has risen around 130 per cent against its upper price band. If an investor had remained invested in this NSE SME stock despite a flat debut on Dalal Street, the absolute value of one's investment would have risen over 130 per cent.
However, the SME stock allows the allottees to create wealth. It allowed directing investors also. It was listed on the NSE at ₹79 and closed around ₹75 (the upper price band of the IPO) on the listing date. If investors had a firm conviction about the strong return from the SME IPO, they had the opportunity to buy the stock at the upper price range from the open market. Today, AVP Infracon's share price is around ₹175, which means the direct stock investor would have also gained handsome returns if they had taken advantage of the flat listing of this SME IPO.
Recently, the company was in the news for securing two projects. It secured ₹23.60 crore for the Bagalur bypass and ₹47.20 crore for the Kallakurichi-Tiruvannamalai road project.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
