A total of 52 Indian companies have raised an all-time high of Rs. That’s despite just five IPOs in the last quarter, according to Pranav Haldea, managing director, Prime Database.
The 2021-22 IPO amount was more than 3.5 times Rs 31,268 crore raised by 30 IPOs in 2020-21. The best year to date was 2017-18 which raised Rs 81,553 crore.
IPOs by loss-making new-age tech startups, strong retail participation and huge listing gains were the other major highlights of 2021-22.
However, total public equity fundraising fell to Rs 1.70 crore from Rs 1.90 crore last year.
Read | Investing in stock markets for beginners
The largest IPO in 2021-22, which was also the largest Indian IPO ever, was of One 97 Communications (Paytm) at Rs 18,300 crore. It was followed by Zomato (Rs 9,375 crore), Star Health (Rs 6,019 crore), PB Fintech (Policybazaar) (Rs 5,710 crore), Sona BLW (Rs 5,550 crore) and FSN E-Commerce (Nykaa) (Rs 5,350 crore). As can be seen, four of the top 6 IPOs were from New Age Technology Companies (NATCs) which collectively raised Rs 38,734 crore.
The average transaction size was a hefty Rs 2,143 crore.
The general response from the public has been very good, according to Prime Database. Of the 50 IPOs for which data is currently available, 29 IPOs received a mega response of more than 10x (including 5 IPOs more than 100x), while 8 IPOs were more than 3x oversubscribed. The remaining 13 IPOs were 1 to 3 times oversubscribed.
The year also saw a tremendous response from retail investors. The average number of applications from retail was 14.05 lacts compared to 12.73 lacts in 2020-21 and 6.88 lacts in 2019-20. Glenmark Life Sciences (33.95 lakhs) received the highest number of retail applications in 2021-22, followed by Devyani International (32.67 lakhs) and Latent View (31.87 lakhs).
The number of shares requested by retail investors by value was 17 percent higher than total IPO mobilization (147 percent in 2020-21), showing the strength and interest of retail investors over the year. However, the total retail allocation was just Rs.
According to Haldea, the success of the IPOs was further fueled by a strong listing performance. Of the 50 IPOs listed so far, 30 achieved a return of more than 10 percent (based on the closing price at the IPO).
Sigachi Industries achieved a staggering 270 percent return, followed by Paras Defense (185 percent) and Latent View (148 percent). 32 of the 50 IPOs are trading above the issue price (closing price on March 15, 2022). The average listing gain was 33 percent compared to 36 percent in 2020-21 and 24 percent in 2019-20.
Twenty-two of the 52 IPOs that went public had a previous PE/VC investor selling shares in the IPO. Tender offers from such PE/VC investors at Rs 25,207 crore accounted for 23 percent of the total IPO amount. Selling offers from promoters at Rs 33,258 crore accounted for another 30 per cent of the IPO amount. On the other hand, the amount of fresh capital raised in IPOs in 2021-22 was still very high, Rs 40,459 crore, which was more than the last 5 years combined.
Check out the latest DH videos here:
Comments are closed.