SpaceX IPO: How Much Did Your ₹10 Lakh Investment Make Overnight?

SpaceX IPO has resulted in overnight profits for investors, including making its CEO Elon Musk the first trillionaire. 

If as a retail investor you were able to secure an allocation at the exact SpaceX IPO offer price of $135. apiece, the returns prove to be worth the investment.

SpaceX shares jumped 19% in their Nasdaq debut on Friday, sending the company's value past $2 trillion to make it the sixth most valuable US-listed company.

Over 510 million shares worth nearly $84 billion exchanged hands in the backdrop of the rocket launcher being presently unprofitable and generated only a portion of the revenue brought in by similarly valued tech giants. 

Also Read: Is SpaceX IPO A True Test For Capitalism?

"For many investors, SpaceX is the closest thing to investing in the railroads during the Industrial Revolution and they are willing to pay the Elon Musk premium for that opportunity," Seth Hickle, chief investment officer at Mindset Wealth Management in Indianapolis told Reuters.

What Your ₹5 Lakh, ₹10 Lakh, & ₹1 Crore In SpaceX Is Worth Now?

Assuming currency exchange rates remained constant, here is exactly what those investments would have turned into by the end of day one:

- Rs 5 lakh would translate to Rs 5.96 Lakh, registering a profit of nearly Rs 96,000.
- Rs 10 lakh would surge to Rs 11.92 Lakh, posting a profit of Rs 1.92 lakh.
- Rs 1 crore would have resulted in Rs 19.2 lakh profit, taking the total to Rs 1.19 crore

SpaceX Stock Outlook

Analysts and portfolio managers noted that investors should expect volatility, especially in the early stages of  SpaceX's life as an US-listed company, due to its small relative float and high valuation. SpaceX's $18.7 billion in revenue gives the company a price-to-revenue ratio of roughly 112, far above other megacap stocks.

Todd Schoenberger, chief investment officer at Crosscheck Management in Washington, D.C., said, "The question remains is, what happens in a couple of weeks from now. Right now, people want to bid the stock higher because it's a winner at this point. Whether it stays that way, that remains to be seen."