BENGALURU: Up to 44 companies raised total funds of around Rs 1,01,500 crore through initial public offerings (IPOs) during nine months ending FY22, and total subscription amounted to over of Rs 27 lakh crore, according to the new KPMG study titled “IPOs in India – IPOs during a global pandemic”.
A total of 84 IPOs were floated in the capital market in FY20 up to the 9 months of FY22, and 81 IPOs fetched Rs 1.52 400 crore during the 9 months of fiscal year 2021-22, fiscal year 2020-21 and fiscal year 2019-20. The study indicates that IPOs in FY 2020-21 performed better on trade day compared to those in FY 20 and 22 (through Dec. 31).
A total of 44 companies that were listed in the 9 months of FY22 averaged 26.2%, with 17 companies reporting more than 25% return.
The study also points out that the country’s stock market recorded 44 listings exceeding the total number of listings in FY21 and FY20, and this is not surprising given the pull in capital markets and the positive feelings generated by vaccination campaigns.
FSN E-Commerce Ventures’ Nykaa, Paytm, Zomato, and PolicyBazaar, among others, listed in 2021.
Primary market activity in FY22 continued the momentum of the second half of FY21 as companies from all walks of life went public.
KPMG said retail investors, alongside institutional investors, provide the required amount of market liquidity through SIP contributions to asset management firms.
No less than 13 of the 44 listings in the 9 months of FY22 saw negative listing gains, four of which saw double-digit declines. The country’s total unicorn count grew by 44 in 2021, with those 44 valued at $94.37 billion.
The study indicates that a few of the top unicorn listings in 2021 saw corrections in the range of 30-50% from their listing prices.
Talking about the SPAC (Special Purpose Acquisition Company) route, as many companies are now using this route, KPMG said that India has already witnessed overseas listing through the SPAC route. Given the traction in the United States, more domestic companies will follow if it proves to be a viable alternative, he said.