BSE IPO index up 41% in 2019, outperforms Sensex, Nifty

CNBC TV18

The BSE IPO gained 41 percent so far this year, outperforming the key benchmark indices BSE Sensex and NSE’s Nifty50 by a huge margin. The Sensex gave a return of just 12 percent this year, while the Nifty advanced just 9 percent so far in 2019.

Nine of the ten stocks listed under the BSE IPO index offered returns of over 30 percent. The gains were primarily driven by four internet stocks, which gave stellar returns—MSTC, Affle India, IndiaMart and Spandana. Although the amount raised by them was not so big, they definitely offer unique business models that are actually pulling investors’ interest.

What they do?

The top gainer in the list is MSTC Ltd, a Mini Ratna Category-I public sector company under the administrative control of the Ministry of Steel. The government owns a 64.75 percent stake in the company. MSTC, a large e-commerce company, is well known for its e-auction portal, e-procurement portal in the B2B & B2C sector. It has the distinction of being such a company in the public sector.

Affle India is a media technology company that serves e-commerce, fin-tech, telecom, media, retail and FMCG companies via advertising agencies. The company primarily earn revenue from its consumer platform on a cost per converted user basis. Additionally, revenues also come from cost per thousand impressions, cost per view and cost per click models. The platform has over 2.1 billion connected devices profiled globally.

IndiaMart is India’s largest online B2B marketplace for business parts and services. It has a 60 percent market share of the online B2B classifieds space in India. The company has 19 years of experience in online trade and commerce. The platform works mostly for business buyers to discover products and services and contact suppliers. The company earns revenue primarily through the sale of subscription packages, and also smaller contributors to revenue are advertising, facilitation of payment etc. It has 92 million registered buyers as on September 2019.

IRCTC is the only entity authorized by Indian Railways to provide Catering services for Railways, Online Railway tickets, Packaged drinking water at railway stations and trains in India. Operates www.irctc.co.in one of the most transacted websites, in the Asia-Pacific region. As of June 30, 1.4 million passengers travelled on the Indian Railways daily. Also diversified into other biz including non-railway catering and services such as e-catering, executive lounges and budget hotels.

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