New Delhi, Aug 13 || Almost 43 per cent of pre-IPO investors in the past five years generated a positive alpha from new-age companies, a report said on Wednesday.
Alpha is a measure of an investment's performance that indicates its ability to generate returns in excess of its benchmark.
Analysis of 25 new-age companies revealed 9 out of 21 companies yielded positive alpha for such investors. Almost 36 per cent of IPO investors and 32 per cent of post-IPO investors generated a positive alpha over the past five years, a report from wealth management firm Client Associates (CA) said.
Twenty-five companies across fintech, logistics, consumer internet, quick commerce, and SaaS that hit the public market during this period were analysed for the report.
Client Associates (CA) found that 11 out of 21 companies (52 per cent) delivered positive alpha at the six-month lock-in expiry, suggesting this window presented the best exit opportunity.
Average IPO subscription stood at 48.5x, with 68 per cent (17 out of 25) delivering listing gains averaging 24.15 per cent. However, these gains were largely fleeting, as only 36 per cent of IPOs recorded long-term outperformance.