2021 proved to be the best-ever for IPO fundraising 

For the primary markets, 2021 proved to be the best-ever till date in terms of cumulative fund raising by way of initial public offers (IPOs). For the first time ever, more than Rs 1 lakh crore was raised in a single calendar year.

Data from Prime Database, a primary market tracker, and the National Stock Exchange (NSE) shows that a total of 63 companies launched their IPOs in 2021 to raise nearly Rs 1.19 lakh crore. 

This beats the previous high of Rs 67,147 crore witnessed in 2017 by a wide margin. Further, 2017 saw a total of only 36 issues, which again corroborates the fact that the current calendar year has been a busy one as an increasing number of private firms looked to get listed in the public markets.

Interestingly, December has historically been looked upon as a lean period in terms of fundraising – global investors are mostly in a holiday mode – but 2021 proved to be an exception as a total of 11 companies launched their IPOs in the last month of the year to cumulatively raise nearly Rs 9,600 crore.

Meanwhile, November and March also saw a total of nine IPOs being launched in each of the months.

MIXED BAG IN TERMS OF RETURNS

For IPO investors, it was a mixed bag in terms of returns as a total of 41 issues are currently trading above their respective issue prices with as many as 14 registering an over 100 per cent rise in the prices.

Paras Defence and Space Technologies has been the best performer of the year with the stock price at Rs 754.60 -- a premium of 331 per cent over its issue price of Rs 175.

Shares of companies like MTAR Technologies, Nureca and Laxmi Organic Industries have also gained over 200 per cent when compared to their respective issue prices. 

The list of companies that have given their investors a return of over 100 per cent also includes Easy Trip Planners, Clean Science and Technology, Macrotech Developers, Latent View Analytics, Stove Kraft, Sigachi Industries, Sona BLW Precision Forgings, Barbeque-Nation Hospitality, Tatva Chintan Pharma Chem and Nazara Technologies.

However, not every IPO investor has been lucky this year as there have been 19 issues that are currently trading below their issue prices. NSE closing prices as on December 27 have been taken into account.

The worst-performer of the year has been Suryoday Small Finance Bank, which is currently at Rs 145.90 – a fall of 52.16 per cent from its issue price of Rs 305. It is followed by CarTrade Tech that has seen its share price halve compared to its issue price.

The high-profile IPO of One 97 Communications – parent entity of Paytm – also features in the list as the shares have lost nearly 37.50 per cent to close at Rs 1,345.30 on December 27. Its issue price was fixed at Rs 2,150.

The list of poor performers also includes Windlas Biotech, S J S Enterprises, FINO Payments Bank, Shriram Properties, Aditya Birla Sun Life AMC, Kalyan Jewellers India, Glenmark Life Sciences, Nuvoco Vistas Corporation, Indian Railway Finance Corporation and Star Health and Allied Insurance Company among others.

START-UPS WERE THE HIGHLIGHT

The highlight of the year was undoubtedly the entry of online and digital majors in the public market arena.

The year 2021 saw companies like Zomato, Nykaa, Paytm and PolicyBazaar entering the stock markets after having commanded huge valuations in the private funding space. 

In terms of returns, Nykaa proved to be the best for investors as the stock has gained 88 per cent from its issue price. Even Zomato is currently up nearly 75 per cent from its issue price. While Policybazaar is almost flat, Paytm has been the worst-performer of the pack.

Incidentally, Paytm shares lost over 27 per cent on the day of its debut, making it the worst debutant in many years if one takes into account all IPOs with an issue size of more than Rs 1,000 crore.

Going ahead, however, there are quite a few start-up IPOs in the pipeline as digital majors like Oyo, PharmEasy, Delhivery, MobiKwik and Ixigo plan to enter the public markets.

STRONG IPO PIPELINE

Data from Prime Database shows that there are more than 35 companies that have already got the final go-ahead from the Securities and Exchange Board of India (SEBI) and can launch their IPOs in the coming months. A SEBI approval is valid for a period of one year from the date of approval.

Companies like Adani Wilmar, AGS Transact Technologies, ESAF Small Finance Bank, Go Airlines (India), Medi Assist Healthcare Services, Northern Arc Capital, One Mobikwik Systems, Puranik Builders, Ruchi Soya Industries and Tracxn Technologies among others are waiting in the pipeline and are expected to launch their respective public issues in the coming months.

Also read: Year 2021: The beginning of Indian tech IPO parade
Also read: 63 IPO issuers mop up record Rs 1.18 lakh crore from markets so far in 2021: Report