Pre-IPO investors made more on exiting new-age tech cos

PRE-INITIAL PUBLIC OFFERING (IPO) investors achieved optimal risk-adjusted returns by exiting during the lock-in expiry window, rather than maintaining long-term positions, data showed in a white paper by Client Associates.

- ANANYA GROVER

It analysed 25 new-age technology companies listed since 2021. According to it, while companies with unfocused business models experienced immediate market scepticism and delivered negative returns after the six-month lock-in period, those with strong retail appeal have generated exceptional short-term returns.