New Delhi: For Indian equities, 2021 has been one of the best years from investors.
The stock market is smashing all records and touching a new high during this calendar year, as this year witnessed a flurry of initial public offerings (IPOs).
So far in 2021, 53 companies and start-ups, which have gone public, raised a whopping Rs 1.08 lakh crore through IPO route. This is the first time ever that total fundraising via IPOs in a single calendar year has breached the Rs 1-trillion mark. The previous high was clocked in 2017 when a total of Rs 67,147.44 crore was raised by 36 companies, according to a report.
The mid- and small-caps beat their larger peers by wide margins.
A report by State Bank of India suggests, as an effect of the Covid-19 pandemic and owing to 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 to either raise capital in the wake of losses encountered during the pandemic or to fund business expansion due to increased demand. November 2021 was probably the busiest month for IPOs in 2021.
IPO Boom Across The World
Not only in India, the number of new IPOs worldwide in 2021 increased 64 per cent year-on-year (YoY) to 2,388, according to a study published by the consulting firm Ernst & Young. Global IPO issue volume went up 67 per cent to $453 billion, the study revealed.
The highest number of IPOs was registered in China, where 593 companies went public in 2021, up 11 per cent YoY, the study found.
Quoting Anuj Kapoor, head of investment banking at UBS India, a Bloomberg report said companies will raise twice the money in comparison to last year.
Many companies opted for IPOs at the end of 2020, primarily because of the impact of the Covid-19 on business and exuberant stock market activity. Analysts explained that companies are going public due to excellent performance seen in the stock markets and higher participation of first-time investors, including high net worth individuals.
Even as the pandemic continues to wreak havoc on India’s economy, the domestic stock market has not been affected at all. In fact, stock market benchmark indices S&P BSE Sensex and Nifty50 are performing better than ever at the moment.
In the coming days, ventures such as LIC, Oyo, Pharmeasy, Delhivery, GoAir, MobiKwik, and Ixigo will be launching their public issues.
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Notable IPOs Of 2021 At A Glance
India’s leading food delivery platform, Zomato, made a stellar debut on Dalal Street on July 23 as the stock opened at Rs 116 on the NSE, a 52.63 percent premium to its final offer price of Rs 76. The listing price on the BSE was at Rs 115, up 51.32 per cent. The market capitalisation of the firm has crossed Rs 1 lakh crore mark, as it stood at Rs 1,08,067.35 crore after a good show on Dalal Street.
One-97 Communications (Paytm)
The Paytm IPO opened for subscription from November 1 to 3. The payments platform fixed the price band of the issue at Rs 2,080 – 2,150 per share. The offer was a combination of fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore by selling shareholders including founder and investors. The company operates the Paytm payment platform and gateway and has over 33 crore customers and 2.2 crore merchants.
Cosmetics-to-fashion retailer Nykaa made a stellar stock market debut on October 28 and closed on November 1, with a price range of Rs 1,085- Rs 1,125 a share. The IPO of FSN E-Commerce Ventures Ltd, which operated an online marketplace for beauty and wellness products Nykaa, has been subscribed more than 82 times on the final day of the bidding. Nykaa has raised Rs 2,396 crore from anchor investors.
PB Fintech (Policybazaar & Paisabazaar)
The PB Fintech IPO of Rs 5,625 crore, comprising fresh issue of Rs 3,750 crore and offer for sale (OFS) of Rs 1,875 crore, opened on November 1 and closed on November 3. It was 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 largest Software as a Service (SaaS) company in the hospitality and travel industry in India mopped up Rs 1,335.74 crore, at a price of Rs 425 per share, from its public issue that was subscribed 17.41 times during December 7-9. The IPO consisted of a fresh issue of Rs 400 crore and an offer for sale of Rs 800 crore. It services marquee clients with data centres based on AI.
Star Health Insurance
Star Health Insurance’s IPO launched on November 30 and closed on December 2. The IPO has a face value of Rs 10 per equity share. The IPO price has been fixed at Rs 870 to Rs 900 per equity share. The IPO had an issue size of Rs 7,249.18 crore. Star Health is a leading health insurance provider and is backed by marquee investors like Rakesh Jhunjhunwala and Westbridge Capital.
The IPO of active pharmaceutical ingredients supplier Supriya Lifescience witnessed strong demand from investors as the offer was subscribed 9.07 times. It received bids for 13.17 crore equity shares against the IPO size of 1.45 crore equity shares on December 20, the final day of bidding.
The stocks of Tega Industries made a stellar 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. On the BSE, the stock opened at Rs 753, a 66 per cent higher versus its issue price, the exchange data showed. The Rs 619-crore IPO, which was entirely an offer for sale by existing investors, was subscribed 219 times with all investor categories oversubscribing their portion of the issue.
The IPO of South India’s real estate firm Shriram Properties was opened on December 8 and closed on December 10. The size of the issue is Rs 600 crore and the price band has been fixed at Rs 113-118 per share. The lot size for 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 decent debut as the stock listed with a 9.46 per cent premium on December 14. The stock opened at Rs 602.05 against an issue price of Rs 550 per share on the BSE, while the opening price on the National Stock Exchange was Rs 600. A combined around 4 million equity shares changed hands on the BSE and NSE in early trades.
CE Info Systems — the parent firm of MapmyIndia — made a strong debut on the exchanges on Tuesday (December 21), listing with a premium of 53 per cent. The stock opened at Rs 1,581 on the BSE against the issue price of Rs 1,033 per share, while on the National Stock Exchange, the opening price was Rs 1,565. Healthy subscription to its IPO and robust financials supported the stock price on Tuesday. The IPO of MapmyIndia saw tremendous demand from investors as the offer was subscribed 154.71 times during December 9-13.
Medplus Health’s share allotment started on Monday (December 20). The public issue, which was worth ₹ 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 grey market, Medplus Health’s 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 comprise predominantly of an OFS as its 100 per cent owner Sion Investments will look to monetise part of the holdings. The CMS Info Systems shares will have a price band of Rs 205 to 216 per share. The company plans to raise Rs 1,100 crore through its public issue.
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