Public Sector IPO Bonanza: Unmatched Returns for Investors

Over the past eight years, 15 out of 18 public sector companies listed in IPOs have delivered substantial returns to investors, with Mazagon Dock Shipbuilders yielding a staggering 3,700% return. Other major players in the shipping and railway sectors have also provided over 1,000% profits, showcasing impressive financial performance post-listing.

In an extraordinary streak of triumph in the stock market, 15 out of 18 public sector companies listed in the last eight years have provided hefty returns to investors, an analysis reveals. Leading the pack is Mazagon Dock Shipbuilders, which has increased its investors' wealth by an incredible 3,700%. This analysis indicates that public sector enterprises, particularly in the shipping and rail industries, have been outperforming and showing impressive profitability since their initial public offerings (IPOs).

Notably, Mazagon Dock Shipbuilders is not alone in bringing substantial gains. Rail Vikas Nigam Ltd, Garden Reach Shipbuilders and Engineers Ltd, and Indian Railways Catering and Tourism Corporation have each delivered over 1,000% returns to those who bought shares at the IPO stage and held on. This sector-specific prowess highlights the railways and shipping public sector enterprises as the top performers.

Despite some laggards like insurance companies, others such as Hindustan Aeronautics and Cochin Shipyard have also seen significant gains. Mazagon Dock's strategic listing in 2020 at Rs 145 a share and its monumental climb to Rs 5,510.2 by April 2025 reflect the strong market potential of these public sector companies, showcasing a prosperous landscape for potential and current investors alike.

(With inputs from agencies.)