New Delhi, Aug 13 (NationPress) A report released on Wednesday indicates that nearly 43 percent of pre-IPO investors have successfully generated a positive alpha from new-age firms over the last five years.

Alpha represents an investment's performance metric, showcasing its capability to produce returns exceeding its benchmark.

The review of 25 new-age companies showed that out of 21 examined entities, 9 delivered positive alpha to these investors. In comparison, around 36 percent of IPO investors and 32 percent of post-IPO investors achieved a positive alpha during the same period, according to findings from wealth management firm Client Associates (CA).

The report analyzed 25 companies across sectors including fintech, logistics, consumer internet, quick commerce, and SaaS that made their market debut in this timeframe.

Client Associates (CA) also discovered that 11 out of 21 companies (approximately 52 percent) produced positive alpha at the six-month lock-in expiration, indicating this period offered the most favorable exit opportunity.

The average IPO subscription rate was at 48.5x, with 68 percent (or 17 out of 25) realizing listing gains averaging 24.15 percent. Nonetheless, these profits were largely temporary, as just 36 percent of IPOs demonstrated long-term outperformance.

A wave of technology-driven companies, spurred by digital adoption, positive demographic trends, and robust capital inflows, have entered the public market in the last five years, reshaping the IPO landscape away from its traditional industrial and BFSI foundations, the report noted.

This shift occurred amidst exceptional liquidity, speculative retail participation, and a narrative-driven investment climate, often overshadowing fundamental business metrics.

Companies like Ixigo and Zaggle exhibited remarkable alpha of 89.29 percent and 62.47 percent, respectively, while others like Ola Electric encountered substantial value losses, plummeting 60.13 percent.

Tech-driven firms with clear monetization strategies (such as Zomato and Nazara) outperformed those with capital-intensive or unfocused business models.

Nitin Aggarwal, Director of Investment Research and Advisory at Client Associates, stated, "Our findings reveal that while early investors enjoyed listing gains, consistent outperformance was mainly observed in companies grounded in solid fundamentals.”

Post-IPO investors faced the greatest disadvantage, with only 8 out of 25 companies (or 32 percent) achieving positive alpha. This segment reflects market efficiency and business fundamentals most accurately. For this group, the listing price often indicated a peak valuation rather than the onset of sustained growth. Merely 32 percent of companies displayed long-term outperformance, emphasizing the difficulty of identifying winners once the initial excitement subsides.