Rs 38,155 crore raised through IPOs till date this year

13 Sep 2022 , 09:28 AM

Research reveals that despite a decline in share sales through IPOs this year, these issues have produced excellent average returns of 50%, while the Sensex only increased by 1.6%. 51 initial public offerings (IPOs) have raised Rs38,155 crore so far in 2022, compared to 55 issues and Rs64,768 crore raised during the same period last year.

According to an analysis by Bank of Baroda house economist Dipanwita Mazumdar, there were only eight high-profile issues in 2022, with the over Rs20,500 crore LIC being the largest but one of the worst performers, as opposed to the previous year when 33 companies raised more than Rs1,000 crore each. The IPOs generated a return of 74% through September 2021, while the Sensex gained 20%. However, 16 high-profile IPOs with issue sizes over Rs1,000 crore are currently trading at a loss.

Companies raised a total of Rs1,21,680 crore from the market in 2021, and the boom may be linked to the Sensex rise as the index increased from 40,000 points to 60,000 points between April and October 2021. From the 2021 issues, 30% listed at a premium of above 20%, compared to 15% in 2022, and 50% of 2021 issues returned more than 20%, while the corresponding figure for 2022 is 43%.

In contrast to this, the Sensex had significant volatility until 2022 when it traded in the 50,000—60,000 region. In 2022, 40% of corporations had negative returns; over 45% of companies had positive returns, and only five issues had returns that were greater than 100% of the issue price.

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