Nikhil Kamathi, co-founder and CIO zerodha took to Twitter to share a graphical data set showing the top 20 largest initial public offerings (IPOs) in India since 2010. Founders often take to social media to share such unique graphical representations. Kamath in his latest post attributed the data to being from another Twitter handle called ‘The Oddball’, which showed the data IPO of big industry leaders like Coal India, General Insurance, SBI Card, Zomato, HDFC Life etc. He posted the tweet with the caption ‘Should one buy in IPO?’. According to the data, there were some companies whose public issues have shown negative returns till August 2021. These companies were selected on the basis of issue size and about 50 per cent of them were shown to be giving negative returns.
The post indicated that big companies like Coal India, General Insurance, IRFC, Indus Towers, Bandhan Bank, Hindustan Aeronautics Limited, Sterling & Wilson and Punjab National Bank Housing Finance have given negative returns till this month.
On the other side of the equation, there are companies like SBI Card, Zomato, HDFC Life, SBI Life Insurance, PowerGrid InvIT, Gland Pharma, ICICI Prudential, ICICI Lombard, Sona BLW, Embassy Office, ICICI Securities and InterGlobe Aviation. Positive returns by August 2021. As per the data provided, the biggest of these were Gland Pharma and HDFC Life with the highest returns. Despite not being the largest in the data set, one of the most significant in the positive return category is Zomato, which launched its IPO in July. Despite the relatively small numbers, the shares have actually crossed the 70 percent mark.
Since 2010, there have been around 270 IPOs and about half of these have so far given only negative returns, according to the Post. A Bloomberg report claims that the total amount raised by IPOs so far in 2021 is $8.8 billion. It was also suggested that as of now, this amount has been equal to the last three years, even though it is only August. If the momentum continues, reports suggest that 2021 will surpass the all-time high of $11.8 billion. Even though Zomato was challenging profits at the time of its IPO, it got strong participation from investors during the day it was open for subscription.
This gave some hope to the industry as profit-challenged start-ups were able to garner good response from their investors. With this new rigor, more and more IPOs are getting listed and beating the benchmark Nifty 50 index by 40 percentage points this year alone. According to Bloomberg, this is the biggest gap in the last seven years.
One of the next most anticipated IPOs to grace the stock exchanges will be Paytm which was scheduled to open in November as per earlier reports. The fintech giant filed its initial offering documents with the aim of raising $2.2 billion through its public offering. This will make the IPO the biggest ever IPO in the country. It will also overtake Coal India Ltd, which raised over Rs 150 billion. With such a fast changing and growing sector, companies incorporated abroad are also looking to shift their base to India. A Bloomberg report states that one such company is PhonePe which is looking to shift from Singapore to India to attract the attention of local investors.
read all breaking newshandjob breaking news And coronavirus news Here
.