Sixty-three companies raised Rs 1.19 trillion through Initial Public Offerings (IPOs) in calendar year 2021 – a record for any year.
This is nearly 4.5 times the Rs 26,613 crore raised thanks to 15 IPOs in 2020 and almost double the previous best of Rs 68,827 crore raised in 2017, according to the PRIME database.
Overall, public fundraising – which includes qualified institutional placements, follow-up offers, as well as infrastructure investment trusts / real estate investment trusts – amounted to Rs 2.02 trillion – higher than the previous record of 1.76 trillion rupees the previous year.
“New age lossy technology (tech) start-ups IPOs, strong retail participation and huge listing gains have been the main drivers that have fueled the IPO boom this year,” he said. said Pranav Haldea, Managing Director of PRIME Database – a leading market tracker.
The average deal size for IPOs was Rs 1,884 crore. The largest IPO was One97 Communications (Paytm) for Rs 18,300 crore – the largest offering in history.
Of the 59 IPOs for which data is available, 36 IPOs received mega-responses greater than 10x (including six IPOs greater than 100x), while eight IPOs were oversubscribed more than 3x. The remaining 15 IPOs were oversubscribed between 1x and 3x.
Prashant Singhal, leader of Emerging Markets, Technology, Media and Telecommunications (TMT), EY, said: “This year has seen some of the best performances in the Indian IPO market, with technology companies in the new era in mind and good traction too. seen in the diversified and industrial products, consumer products and retail sectors. Investor sentiment remains optimistic at the end of 2021, with strong national and global demand and significant momentum by 2022. “
The year was also marked by an incredible response from retail investors. The average number of retail claims was 1.43 million, up from 1.27 million in 2020 and 405,000 in 2019. The highest number of retail claims in 2021 was received by Glenmark Life Sciences (3 , 39 million), followed by Devyani International (3.26 million) and Latent View (3.18 million).
The volume of actions demanded by retail accounted for 135% of IPO mobilization, up from 156% in 2020. However, the total allocation to retail was Rs 24,292 crore, which was only 20%. % of the total mobilization of IPOs (down against 32% in 2020).
According to Haldea, the success of the IPOs was supported by a strong listing performance. Of the 58 IPOs that have been listed to date, 34 have yielded more than 10 percent, based on the closing price on the listing date.
Sigachi Industries generated the most ROI with 270% when it started, followed by Paras Defense & Space Technologies (185%) and Latent View (148%).
Forty of the 58 IPOs are trading above the issue price (December 22 closing price). The average SEO gain was 32%, compared to 44% in 2020 and 19% in 2019.
Twenty-five of the 63 IPOs that hit the market already had a Private Equity (PE) / Venture Capital (VC) investment. The offers to sell (OFS) of these PE / VC investors at Rs 24,106 crore represented 20% of the total IPO amount. OFS by the promoters at Rs 31,704 crore accounted for an additional 27% of the IPO amount. The amount of new capital raised in IPOs in 2021 stood at Rs 43,324 crore, more than the past eight years combined.
The lead investors collectively subscribed to 39 percent of the total amount of the public offering. Foreign portfolio investors played a prominent role as benchmark investors, with their subscription amounting to 24 percent of the amount, followed by mutual funds at 11 percent.
Qualified institutional buyers (including benchmark investors) subscribed for 69% of the total amount of the public issue.
This year was also marked by a record number of filings with the market regulator, with 115 filings, compared to 50 in 2019 and 2020 combined.