On the back of market euphoria, India saw a deluge of initial public offerings (IPOs) from various new-age technology-driven and emerging sectors in 2021. IPOs remained a buzzword on Dalal Street this year. Here are some key takeaways from the 2021 IPO story.
IPO Launches
The year saw more than one IPO per week with 65 mainboard IPOs. This number doubles if we include the 60 Small and Medium Enterprise (SME) IPOs that got listed on the NSE and BSE SME exchanges. Technically, this means one IPO every alternate day in 2021.
Another interesting thing to have happened this year is that the first day of the year began with IPO listing and the last market day of the year also saw IPO listing. Antony Waste IPO got listed on January 1, 2021, while CMS Info Systems debuted on the last day of the year, December 31, 2021.
IPO Collections
In terms of IPO collections, record collections were driven by four digital IPOs—Zomato, Paytm, Nykaa and Policybazaar—which together collected nearly Rs 39,000 crore. In terms of quarterly collections, the December quarter saw the most action despite some volatility and collected over Rs 55,600 crore. Out of the total 65 IPOs launched this year, 17 had an issue size of over Rs 2,000 crore and eight had an issue size of over Rs 5,000 crore.
IPO Performance
Out of the 65 IPOs in the calendar year 2021, 45 gave positive returns and 20 gave negative returns as on December 30, 2021. As many as 15 IPOs delivered over 100 per cent returns.
Healthcare company Nureca stole the show by delivering over 322 per cent returns, followed by Paras Defence and Space Technology. In the last two trading sessions, Nureca dethroned Paras Defence and Space Technology, which had remained the blue-eyed boy for investors since its listing in October.
The average returns of all the IPOs listed this year stands at 53.85 per cent. To give you a perspective, if you had applied for all IPOs launched this year for the minimum lot size and assuming that you got allotment in all, you would have made more money than from investments in the broadly tracked indices of Sensex and Nifty.
While many IPOs made money for their investors, some destroyed wealth. In this list of worst-performing IPOs, Suryoday Small Finance Bank leads with a negative return of 52.08 per cent, followed by CarTrade with (-)47.77 per cent. In this list is also the much-hyped and the biggest IPO of the year, that of Paytm’s parent company, One97 Communications. It comes in at number four with a negative return of (-)38.24 per cent.
According to industry estimates, the year 2022 is likely to see Rs 2,20,000 crore worth of IPOs and could be a lot more interesting for investors. Wish you a very happy IPO year 2022.
