IPO Boom 2021 – Rs114,653cr in 11 months and counting

As November 2021 comes to a close, it has been a busy 11 months for the IPO markets. October and November saw Rs37,000cr being raised through the IPO route with Paytm accounting for half of that amount.

Nov 25, 2021 10:11 IST India Infoline News Service

As November 2021 comes to a close, it has been a busy 11 months for the IPO markets. October and November saw Rs37,000cr being raised through the IPO route with Paytm accounting for half of that amount. Year 2021 is already a record year for IPOs, beating 2017 by a margin, and there is still one month to go, with a number of mega issues lined up.

Here is the macro picture. A total of 53 IPOs (including 1 REIT and 1 INVIT) collected a total of Rs.114,653cr so far in year 2021. We have excluded the Star Health IPO as it opens in November but closes in December. The IPOs of Tarsons and Go Fashion are yet to list, so we have used the GMP as a proxy for analysis purposes. Here is the IPO 2021 story.


Company Name Issue Close Issue Size (Rs. Crore) Subscription (X) Issue Price (Rs.) CMP (Rs.) Returns (%)
IRFC Ltd 20-Jan 4,633.38 3.49 26 23.70 -8.85%
Indigo Paints 22-Jan 1,176.00 117.02 1,490 2,260.00 51.68%
Home First Finance 25-Jan 1,173.72 26.66 518 802.00 54.83%
Stove Kraft Ltd 28-Jan 412.63 18.03 385 984.95 155.83%
Brookefield REIT 05-Feb 3,800.00 7.94 275 294.00 6.91%
Nureca Ltd 17-Feb 100.00 39.93 400 1,515.00 278.75%
Railtel Ltd 18-Feb 819.24 42.39 94 121.80 29.57%
Heranba Industries 25-Feb 625.24 83.29 627 683.95 9.08%
MTAR Technologies 05-Mar 596.41 200.79 575 2,125.00 269.57%
Easy Trip Planners 10-Mar 510.00 159.33 187 527.70 182.19%
Anupam Rasayan 16-Mar 760.00 44.06 555 800.00 44.14%
Craftsman Automation 17-Mar 823.7 3.82 1,490 2,419.95 62.41%
Laxmi Organic Industries 17-Mar 600.00 106.81 130 430.00 230.77%
Kalyan Jewellers 18-Mar 1,175.00 2.61 87 71.40 -17.93%
Nazara Technologies 19-Mar 582.91 175.46 1,101 2,260.00 105.27%
Suryoday SFB 19-Mar 582.34 2.37 305 160.10 -47.51%
Barbeque Nation 26-Mar 452.87 5.98 500 1,525.00 205.00%
Macrotech Developers 09-Apr 2,500.00 1.36 486 1,393.80 186.79%
Powergrid INVIT 03-May 7,734.99 4.83 100 119.78 19.78%
Shyam Metalics 16-Jun 909.00 121.43 306 332.90 8.79%
Sona BLW Precision 16-Jun 5,550.00 2.28 291 743.00 155.33%
Dodla Dairy 18-Jun 520.18 45.62 428 578.10 35.07%
KIMS Ltd 18-Jun 2,143.74 3.86 825 1,180.00 43.03%
India Pesticides 25-Jun 800.00 29.04 296 305.25 3.13%
GR Infraprojects 09-Jul 963.28 102.58 837 1,845.00 120.43%
Clean Science & Tech 09-Jul 1,546.62 93.41 900 2,125.00 136.11%
Zomato Ltd 16-Jul 9,375.00 38.25 76 153.85 102.43%
Tatva Chintan 28-Jul 500.00 108.36 1,083 2,609.00 140.90%
Glenmark Life 29-Jul 1,513.60 44.17 720 623.10 -13.46%
Rolex Rings 30-Jul 731.00 130.44 900 1,108.90 23.21%
Windlas Biotech 06-Aug 401.54 22.44 460 298.50 -35.11%
Exxaro Tiles 06-Aug 161.09 22.65 120 148.80 24.00%
Devyani International 06-Aug 1,838.00 116.7 90 152.55 69.50%
Krsnaa Diagnostics 06-Aug 1,213.33 64.38 954 694.70 -27.18%
CarTrade Tech 11-Aug 2,998.51 20.29 1,618 994.90 -38.51%
Nuvoco Vistas 11-Aug 5,000.00 1.71 570 527.50 -7.46%
Chemplast Sanmar 12-Aug 3,850.00 2.17 541 599.00 10.72%
Aptus Value Housing 12-Aug 2,780.05 17.2 353 331.90 -5.98%
Ami Organics 03-Sep 569.64 64.54 610 988.00 61.97%
Vijaya Diagnostics 03-Sep 1,895.04 4.54 531 567.00 6.78%
Sansera Engineering 16-Sep 1,282.98 11.47 744 795.90 6.98%
Paras Defence 23-Sep 170.78 304.26 175 716.55 309.46%
Aditya BSL AMC 01-Oct 2,768.26 5.25 712 597.20 -16.12%
FSN E-Commerce 01-Nov 5,351.92 81.78 1125 2,236.00 98.76%
Fino Payments 02-Nov 1,200.29 2.03 577 469.90 -18.56%
SJS Enterprises 03-Nov 800.00 1.59 542 488.20 -9.93%
PB Fintech 03-Nov 5,625.00 16.59 980 1,293.00 31.94%
Sigachi Industries 03-Nov 125.43 101.91 163 537.45 229.72%
One97 Communications 10-Nov 18,300.00 1.89 2150 1,753.00 -18.47%
Sapphire Foods 11-Nov 2,073.25 6.62 1180 1,164.00 -1.36%
Latent View 12-Nov 600.00 326.49 197 586.50 197.72%
Tarsons Products 17-Nov 1,023.47 77.49 662 832.00 25.68%
Go Fashion India 22-Nov 1,013.61 135.46 690 1,090.00 57.97%
Data Source: NSE / BSE (CMP is 24-Nov closing price – Tarsons / Go Fashion are GMP)

The biggest IPO of 2021 was obviously Paytm, which collected Rs18,300cr. However, the subscription for Paytm, was just about 1.89 times. This contrasts with the Rs9,375cr Zomato IPO which was subscribed 38 times and the Rs5,352cr IPO of Nykaa that was subscribed 81.78 times. The outcome was visible in their listing performance. While Zomato and Nykaa had a stellar listing, Paytm had a relatively disappointing listing.

Out of the 53 IPOs in year 2021 so far, 7 IPOs had a size of more than Rs5,000cr. A total of 28 IPOs (more than 50% of the CY2021 total) were above Rs.1,000 crore. In terms of subscription, 14 out of the 53 IPOs in CY2021 got subscribed more than 100 times while nearly half of the IPOs were subscribed more than 30 times. A total of 18 IPOs could muster just single-digit subscriptions during the year.

If you had to look at the underlying theme, it was all about digital IPOs. Out of the 53 IPOs in 2021, 6 digital IPOs (EasyTrip, CarTrade, Zomato, Nykaa, Policybazaar and Paytm) collected Rs42,160cr between them accounting for 37% of the total IPO collections in the year. While EasyTrip, Nykaa and Zomato have performed extremely well, the performance of Policybazaar has been in the positive but Paytm and CarTrade disappointed on listing.

Was  listing performance linked to oversubscription?

This can be a double edged story. If you look at the 14 IPOs in 2021 that were subscribed over 100 times, all of them are quoting above their issue price. However, the returns range from 8.79% in the case of Shyam Metalics to 309.46% in case of Paras Defence. However, if you look at the 26 companies subscribed more than 30 times, there are two companies viz. Krsnaa Diagnostics and Glenmark Life that are quoting at a discount to issue price.

We now move to the 18 IPOs that got single-digit subscriptions. Here 50% of these IPOs are quoting below their issue price. However, Sona BLW, Macrotech and Barbeque Nation have given over 100% returns, despite single-digit subscription The moral of the story is; higher subscriptions have helped, but is not the only condition for post-listing performance.

How did IPOs as an asset class perform in 2021?

Out of the 53 IPOs in CY2021 so far, 39 IPOs gave positive returns while 14 IPOs generated negative returns with Suryoday SFB being the worst performer and Paras Defence being the star performer. Would a passive strategy of investing in IPO as an asset class have helped?

Had you invested equal amounts in all the 53 IPOs passively, then IPOs as an asset class would have generated returns of 38.06% on the IPO portfolio. That is certainly better than most asset classes in the current year!

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