New Delhi: For Indian equities, 2021 has been one of the best years for investors.
The stock market has been breaking all records and touching a new high during this calendar year, as the year witnessed a flurry of Initial Public Offerings (IPOs).
So far, 53 companies and startups that went public in 2021 have raised Rs 1.08 lakh crore through IPO. This is the first time that total fundraising through IPOs has crossed the Rs 1 trillion mark in a calendar year. The previous high was seen in 2017 when a total of Rs 67,147.44 crore was raised by 36 companies, according to a report.
Mid- and small-caps beat their larger peers by wide margins.
A State Bank of India report suggests that as the impact of the COVID-19 pandemic and the ease of opening a demat account, there was a huge increase in the number of first-time investors in the market. Over 1.4 crore new demat accounts were opened in FY21.
Companies are going public either to raise capital in the wake of losses incurred during the pandemic or to raise funds to expand business due to increased demand. November 2021 was probably the busiest month for an IPO in 2021.
Worldwide IPO Boom
Not only in India, the number of new IPOs across the world grew 64 per cent year-on-year (YoY) to 2,388 in 2021, according to a study published by consulting firm Ernst & Young. The study showed that global IPO issuance volume increased 67 percent to $453 billion.
The study found that the highest number of IPOs were registered in China, where 593 companies went public in 2021, an increase of 11 per cent annually.
A Bloomberg report quoted Anuj Kapoor, head of investment banking at UBS India, as saying that companies will raise twice as much money as last year.
Many companies opted for IPOs in late 2020, mainly due to the impact of COVID-19 on business and high stock market activity. Analysts explained that companies are going public due to the excellent performance seen in the stock markets and high participation from first time investors, including high net worth individuals.
Even though the pandemic is wreaking havoc on India’s economy, the domestic stock market has not been affected at all. Actually, the benchmark indices S&P BSE Sensex and Nifty 50 of the stock market are performing better than before.
Companies like LIC, Oyo, Pharmeasy, Delhivery, GoAir, MobiKwik and Ixigo will launch their public issues in the coming days.
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Notable IPOs of 2021 at a Glance
zomato
India’s leading food delivery platform, Zomato, made a great start on July 23 on Dalal Street as the stock opened at Rs 116 on NSE, a 52.63 per cent premium from its final offer price of Rs 76. The listing price on BSE was Rs 115, up 51.32 per cent. The market capitalization of the firm has crossed Rs 1 lakh crore as it stood at Rs 1,08,067.35 crore after a decent showing on Dalal Street.
One-97 Communication (Paytm)
Paytm IPO open for subscription from November 1 to November 3. The payment platform has fixed the issue price band at Rs 2,080 – Rs 2,150 per share. The offer was a combination of a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore by selling to shareholders including the founder and investors. The company operates the Paytm payment platform and gateway and has over 33 crore customers and 22 million merchants.
hero
Cosmetic-to-fashion retailer Nykaa made a great debut in the stock market on October 28 and closed on November 1, with prices ranging from Rs 1,085 to Rs 1,125 per share. The IPO of FSN E-commerce Ventures Ltd, which operates an online marketplace for beauty and wellness products Nykaa, has been subscribed more than 82 times on the last day of bidding. Nykaa has raised Rs 2,396 crore from anchor investors.
PB Fintech (PolicyBazar and Paisabazaar)
The Rs 5,625 crore PB Fintech IPO, which includes a fresh issue of Rs 3,750 crore and an offer for sale (OFS) of Rs 1,875 crore, opened on November 1 and closed on November 3. It got subscribed 16.6 times. PB Fintech runs the popular portals Policybazaar and Paisabazaar.
RateGain Travel Technologies
The listing of equity shares of RateGain took place on December 17. The software-as-a-service (SaaS) company in the hospitality and travel industry in India raised Rs 1,335.74 crore through its public issue at Rs 425 per share. Which was subscribed 17.41 times during 7-9 December. The IPO included a fresh issue of Rs 400 crore and an offer for sale of Rs 800 crore. It serves key customers with data centers based on AI.
star health insurance
The IPO of Star Health Insurance launched on 30 November and closed on 2 December. The face value of the IPO is Rs 10 per equity share. The IPO price has been fixed at Rs 870 to Rs 900 per equity share. The issue size of the IPO was Rs 7,249.18 crore. Star Health is a leading health insurance provider and is backed by prominent investors like Rakesh Jhunjhunwala and Westbridge Capital.
Supriya Lifescience
Active pharmaceutical ingredients supplier Supriya LifeScience’s IPO witnessed strong investor demand as the offer was subscribed 9.07x. It received bids for 13.17 crore equity shares against the IPO size of 1.45 crore equity shares on December 20, the last day of bidding.
Tega Industries
Shares of Tega Industries made an impressive debut on the stock exchanges on December 13, with its equity shares listed at Rs 760, a 68 per cent premium over its issue price of Rs 453 per share on the NSE. Exchange data shows that on BSE, the stock opened at Rs 753, which is 66 per cent higher than its issue price. The Rs 619 crore IPO, which was purely an offer for sale by existing investors, was subscribed 219 times with all investor categories oversubscribing their share of the issue.
Shriram Properties
The IPO of South Indian real estate firm Shriram Properties opened on December 8 and closed on December 10. The issue size is Rs 600 crore and the price band has been fixed at Rs 113-118 per share. The lot size of the issue is 125 shares. According to the upper price of the price band, investors will have to invest at least Rs 14,750. The issue will open for anchor investors on Tuesday.
Anand Rathi Wealth
Anand Rathi Wealth, a leading non-bank mutual fund distributor and wealth solutions firm, made a good start as a listed stock on December 14 with a premium of 9.46 per cent. The stock opened at Rs 602.05 against the issue price of Rs 550 per share. On BSE, while on National Stock Exchange the opening price was Rs 600. Around 4 million equity shares changed hands on BSE and NSE in early trade.
mapmyindia
MapmyIndia’s parent company CE Info Systems made a strong start on the exchanges on Tuesday (December 21) by listing with a premium of 53 per cent. The stock opened at Rs 1,581 on the BSE against an issue price of Rs 1,033 per share, while the opening price on the National Stock Exchange was Rs 1,565. Good subscription to its IPO and strong financials supported the share price on Tuesday. MapmyIndia’s IPO witnessed tremendous investor demand as the offer was subscribed 154.71 times during December 9-13.
Medplus Health
The share allotment of MedPlus Health began on Monday (December 20). The public issue, valued at ₹ 1,398 crore, was subscribed 52.59 times when it opened between December 13 and 15, 2021. Its retail portion was subscribed 5.24 times and according to market observers, in the gray market, MedPlus Health shares are currently trading at a premium of Rs 250.
CMS Info Systems
CMS Info Systems, one of the country’s leading cash management companies, will launch its IPO on December 21 (Tuesday). The Rs 2,000-crore IPO will primarily consist of an OFS as its 100 per cent owner Sion Investments will monetise the holdings’ share. The price band for CMS Info Systems shares will be Rs 205-216 per share. The company plans to raise Rs 1,100 crore through its public issue.
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