Does size really matter? Mega IPOs and their miserable returns

Even one of India's favourite payment apps Paytm is seeing a very low-key interest on Dalal Street as its public issue was subscribed just 12% on Day 1. Paytm's parent company One 97 Communications is aiming at the country's largest IPO but investors are surely cautious (as it seems to be yet) about its valuations. But does the size really matters? Editorji compiles a list of large Indian IPOs that have failed to enthuse investors in the long run.

Read/Watch Also: Paytm, the risks keeping investors at bay

1. Coal India shares are down over 30% from its issue price of Rs 245. The Rs 15,200 crore-worth Coal India IPO came in 2010. The share price as of November 9 stood at Rs 171.

2. Reliance Power: From an issue price of Rs 450 to a mere Rs 14, shares have dived down close to 97% in their lifetime. Reliance Power was one of India's biggest IPOs that had raised more than Rs 11,500 crore in 2008.

3. The Rs 9,100-crore DLF IPO is failed the street as its shares hover around Rs 440, significantly down from its issue price of Rs 550. DLF shares touched above Rs 1,100-level shortly after being listed.

4. Shares of General Insurance are down 85% since its listing. The Rs 11,175 crore IPO offered an issue price band of Rs 855 to 912, only to trade near Rs 140 these days.

5. Imagine Rs 800 turning into Rs 156 in just 4 years. Investors' wealth has fallen 80% after they put their hard-earned money into New India Assurance Company's IPO, which had raised a whopping Rs 9,600 crore from the street.

So, offering size big or small, it's the profit-making capabilities of a company that matter in the long run.

Also read/watch: Paytm IPO: Subscribers ask IPO Karoo?