A total of 40 Indian companies raised Rs 59,412 crore through main board IPOs in calendar year 2022, which is half of the Rs 1,18,723 crore (all-time high) raised by 63 IPOs in 2021, according to primary market tracking data. Firm Prime Database. Out of the total fundraising through IPO In 2022, around Rs 20,557 crore or 35 per cent of the amount raised in 2022 was done by LIC alone.
Prime Database Group Managing Director Pranav Haldia said total public equity funding is also set to decline by 55 per cent to Rs 90,995 crore in 2021 from Rs 2,02,048 crore.
“The biggest IPO in 2022, which was also the biggest Indian IPO ever, was that of Life Insurance Corporation of India. After this comes the number of Delhivery (Rs 5,235 crore) and Adani Wilmar (Rs 3,600 crore). The average deal size was Rs 1,485 crore, Prime Database said in a report.
Haldia said 17 of the 40 IPOs, or nearly half, came in the last two months of the year alone, reflecting the volatile conditions prevailing for most of the year that are not conducive to IPO activity.
In an action-packed 2022, the Sensex saw rallies above 1,000 14 times with the biggest one-day gain of 1,736 points on February 15. Day.
Only one out of 40 IPOs (Delhi) was from new-age technology company NATC, as compared to seven NATC IPOs for Rs 42,826 crore in 2021, pointing to a slowdown in IPOs from the sector.
According to primedatabase.com the overall response from the public was moderate. Of the 38 IPOs with currently available data, 12 IPOs received a mega response of more than 10 times (of which two IPOs more than 50 times), while seven IPOs were oversubscribed more than three times. The remaining 19 IPOs were oversubscribed between one and three times. The new HNI segment (Rs 2-10 lakh) received an encouraging response with 11 IPOs having a response of more than 10 times from this segment.
“Compared to 2022, the response from retail investors was also moderate. The average number of applications from the retail sector came down to just 5.92 lakh as compared to 14.25 lakh in 2021 and 12.77 lakh in 2020. Adani Wilmar (18.96 lakh),” Prime Database said in the report.
The amount of shares applied for value by retail (Rs 46,437 crore) was 22 per cent lower than the total IPO raising (as compared to 42 per cent higher in 2021) reflecting the low level of enthusiasm from the retail sector during the period Is. However, the total allocation to the retail sector stood at Rs 16,837 crore, which was 28 per cent of the total IPO collection (up from 20 per cent in 2021).
Haldia said the response to the IPO was further slow due to the slow listing. The average listing gain (based on the closing price on the listing date) fell by 10 per cent as compared to 32.19 per cent in 2021 and 43.82 per cent in 2020.
Of the 38 IPOs listed so far, 17 have given returns of more than 10 per cent. DCX Systems gave a handsome return of 49 per cent, followed by Harsha Engineers and Hariom Pipe Industries (47 per cent each). 23 out of 38 IPOs are trading above the issue price (closing price as on December 30, 2022).
Of the 40 IPOs that hit the market, only 14 had a former PE/VC investor who sold shares in the IPO. The Offer for Sale of Rs 7,821 crore by such PE/VC investors is 13 per cent of the total IPO amount. The offer for sale by private promoters for Rs 8,623 crore is 15 per cent of the IPO amount, while the offer for sale by the government is 35 per cent of the IPO amount. On the other hand, the amount of fresh capital raised from the IPO in 2022 was Rs 17,662 crore.
Anchor investors collectively subscribed 32 per cent of the total public issue amount. Domestic mutual funds played a more dominant role as anchor investors as compared to FPIs, contributing 15 per cent of the issue amount with FPIs at 12 per cent. Qualified institutional buyers (including anchor investors) subscribed to 57 per cent of the total public issue amount. On an aggregate basis, FPIs as anchors and QIBs subscribed 21 per cent of the issue amount, slightly lower than MFs’ 22 per cent.
In the year 2022, 85 companies filed their offer documents with SEBI for approval as compared to 128 last year. On the other hand, 27 companies seeking to raise around Rs 37,000 crore lapsed their approvals in 2022 and seven companies seeking to raise Rs 4,200 crore withdrew their offer documents.
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