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IPOs collect over Rs131,000cr in calendar year 2021

As December 2021 comes to a close and the IPO season is well and truly over for the year, it has been an interesting and a record year so far.

December 27, 2021 7:34 IST | India Infoline News Service
As December 2021 comes to a close and the IPO season is well and truly over for the year, it has been an interesting and a record year so far. There was a lot of action in Dec-21 quarter with IPOs worth Rs55,665cr out of Rs131,437cr in the full year. This is a record year for IPO collections beating the earlier record of 2017 by a huge margin of over 40%.

Here is the macro picture. During 2021, A total of 65 IPOs (including 1 REIT and 1 INVIT) collected a total of Rs131,437cr in year 2021. A total of 62 IPOs have already listed and the last 3 IPOs of HP Adhesives, Supriya Lifesciences and CMS Info are expected to list in the last week. The record IPO collections was driven by 4 digital IPOs viz. Zomato, Paytm, Nykaa and Policybazaar collecting nearly Rs39,000cr.

Here is the IPO story of 2021.

Company
Name
Issue
 Close
Issue Size
(Rs. Crore)
Subscription
Ratio (X)
Issue
Price (Rs.)
CMP (Rs.) Returns (%)
IRFC Ltd 20-Jan 4,633 3.49 26 22.55 -13.27%
Indigo Paints 22-Jan 1,176 117.02 1,490 1,930.00 29.53%
Home First Finance 25-Jan 1,174 26.66 518 816.00 57.53%
Stove Kraft Ltd 28-Jan 413 18.03 385 962.00 149.87%
Brookefield REIT 05-Feb 3,800 7.94 275 292.00 6.18%
Nureca Ltd 17-Feb 100 39.93 400 1,400.00 250.00%
Railtel Ltd 18-Feb 819 42.39 94 115.55 22.93%
Heranba Industries 25-Feb 625 83.29 627 648.00 3.35%
MTAR Technologies 05-Mar 596 200.79 575 2,259.00 292.87%
Easy Trip Planners 10-Mar 510 159.33 187 513.10 174.39%
Anupam Rasayan 16-Mar 760 44.06 555 910.00 63.96%
Laxmi Organic 17-Mar 600 106.81 130 397.00 205.38%
Craftsman Automation 17-Mar 824 3.82 1,490 2,275.00 52.68%
Kalyan Jewellers 18-Mar 1,175 2.61 87 67.70 -22.18%
Nazara Technologies 19-Mar 583 175.46 1,101 2,262.00 105.45%
Suryoday SFB 19-Mar 582 2.37 305 146.65 -51.92%
Barbeque Nation 26-Mar 453 5.98 500 1,221.00 144.20%
Macrotech Developers 09-Apr 2,500 1.36 486 1,244.50 156.07%
Powergrid INVIT 03-May 7,735 4.83 100 120.50 20.50%
Sona BLW Precision 16-Jun 5,550 2.28 291 715.00 145.70%
Shyam Metalics 16-Jun 909 121.43 306 321.90 5.20%
KIMS Ltd 18-Jun 2,144 3.86 825 1,346.10 63.16%
Dodla Dairy 18-Jun 520 45.62 428 545.00 27.34%
India Pesticides 25-Jun 800 29.04 296 320.10 8.14%
Clean Science & Tech 09-Jul 1,547 93.41 900 2,399.00 166.56%
GR Infraprojects 09-Jul 963 102.58 837 1,667.00 99.16%
Zomato Ltd 16-Jul 9,375 38.25 76 131.50 73.03%
Tatva Chintan 28-Jul 500 108.36 1,083 2,489.95 129.91%
Glenmark Life 29-Jul 1,514 44.17 720 605.00 -15.97%
Rolex Rings 30-Jul 731 130.44 900 1,151.00 27.89%
Devyani International 06-Aug 1,838 116.70 90 168.00 86.67%
Exxaro Tiles 06-Aug 161 22.65 120 142.45 18.71%
Krsnaa Diagnostics 06-Aug 1,213 64.38 954 640.00 -32.91%
Windlas Biotech 06-Aug 402 22.44 460 265.35 -42.32%
Nuvoco Vistas 11-Aug 5,000 1.71 570 497.00 -12.81%
CarTrade Tech 11-Aug 2,999 20.29 1,618 826.65 -48.91%
Chemplast Sanmar 12-Aug 3,850 2.17 541 546.05 0.93%
Aptus Value Housing 12-Aug 2,780 17.20 353 334.00 -5.38%
Ami Organics 03-Sep 570 64.54 610 935.00 53.28%
Vijaya Diagnostics 03-Sep 1,895 4.54 531 533.20 0.41%
Sansera Engineering 16-Sep 1,283 11.47 744 753.00 1.21%
Paras Defence 23-Sep 171 304.26 175 685.00 291.43%
Aditya BSL AMC 01-Oct 2,768 5.25 712 510.00 -28.37%
FSN E-Commerce 01-Nov 5,352 81.78 1125 2,037.00 81.07%
Fino Payments 02-Nov 1,200 2.03 577 392.50 -31.98%
Sigachi Industries 03-Nov 125 101.91 163 396.90 143.50%
PB Fintech 03-Nov 5,625 16.59 980 985.15 0.53%
SJS Enterprises 03-Nov 800 1.59 542 350.50 -35.33%
Paytm 10-Nov 18,300 1.89 2150 1,368.00 -36.37%
Sapphire Foods 11-Nov 2,073 6.62 1180 1,187.25 0.61%
Latent View 12-Nov 600 326.49 197 497.75 152.66%
Tarsons Products 17-Nov 1,023 77.49 662 635.05 -4.07%
Go Fashion India 22-Nov 1,014 135.46 690 1,129.00 63.62%
Star Health Insurance 02-Dec 7,249 0.79 900 790.00 -12.22%
Tega Industries 03-Dec 619 219.04 453 585.00 29.14%
Anand Rathi Wealth 06-Dec 660 9.78 550 571.00 3.82%
Rategain Travel 09-Dec 1,336 17.41 425 370.70 -12.78%
Shriram Properties 10-Dec 600 4.60 118 83.00 -29.66%
MapmyIndia 13-Dec 1,040 154.71 1033 1,448.00 40.17%
Metro Brands 14-Dec 1,368 3.64 500 469.00 -6.20%
Medplus Health 15-Dec 1,398 52.59 796 1,077.95 35.42%
Data Patterns 16-Dec 588 119.62 585 750.50 28.29%
HP Adhesives 17-Dec 126 20.96 274 274.00 0.00%
Supriya Lifesciences 20-Dec 700 71.51 274 274.00 0.00%
CMS Info Systems 23-Dec 1,100 1.95 216 216.00 0.00%
  Data Source: NSE / BSE (CMP is 24-Dec closing price – Last 3 IPOs are yet to list)

Key takeaways from the IPO 2021 story

There were a total of 65 IPOs that hit the primary market during the year of which 8 IPOs had an IPO size of more than Rs5,000cr while 17 IPOs had an issue size of more than Rs2,000cr. Let us now turn to the subscription story.

Out of the 65 IPOs in the year so far, two IPOs viz. Latent View Analytics and Paras Defence got subscriptions in excess of 300 times. A total of 17 out of the 65 IPOs were subscribed more than 100 times and 25 IPOs were subscribed more than 50 times. A total of 23 IPOs in the year got less than 10 times subscription with Star Health & Allied Insurance being the only IPO to get undersubscribed resulting in IPO size being reduced.

What about returns? Out of the 65 IPOs, 44 IPOs are trading at a premium to the issue price while 18 are trading at a discount. In terms of top performers, MTAR Technologies, Paras Defence, Nureca and Laxmi Organics have given more than 200% returns over the issue price. A total of 14 IPOs gave more than 100% returns while 24 IPOs gave returns of more than 50% on the issue price.

Out of the 18 companies with negative returns, worst performers were Suryoday SFB (-51.9%), CarTrade (-48.9%) and Windlas Biotech (-42.3%). In the Dec-21 quarter, out of the 23 IPOs that hit the market, 9 are trading at a discount to the issue price.

Has there been a link between subscription and stock performance

In 2021, 17 IPOs were subscribed over 100 times and all of them are quoting above their issue price. However, the returns range from 5.20% in the case of Shyam Metalics to 292.87% in case of MTAR Technologies and 291% for Paras Defence. However, if you look at the 31 companies subscribed more than 30 times, there are 3 companies viz. Tarsons Products, Krsnaa Diagnostics and Glenmark Life trading at a discount to issue price.

We now move to the 23 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. Let us also look at correlation between subscription ratio and post-listing returns. It stands at 0.54, implying that higher subscriptions may have helped, but is not the only condition for healthy post-listing returns.

How did IPOs as an asset class perform in 2021?

Out of the 65 IPOs in CY2021 so far, 44 gave positive returns, 18 gave negative returns and 3 IPOs are yet to list. Would a passive strategy of investing in IPOs as an asset class have helped the investor? Let us look at the numbers.

Had you invested equal amounts in all the 65 IPOs passively, then IPOs as an asset class would have generated returns of 23.57% on the IPO portfolio. That is marginally higher than what the Nifty has generated in 2021. However, year 2022 is likely to see Rs220,000cr worth of IPOs and could be a lot more interesting!

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