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Record Rs 1.19 trillion fund raising in 2021 through IPOs, shows data

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Sixty-three companies raised Rs 1.19 trillion through initial public offerings (IPOs) in calendar year 2021 – a record for any year.

According to Prime Database, this is nearly 4.5 times of the Rs 26,613 crore raised through 15 IPOs in 2020 and almost double the previous best of Rs 68,827 crore raised in 2017.

Overall, Public Equity – which includes qualified institutional placements, follow-on offerings, as well as infrastructure investment trusts/real estate investment trusts – stood at Rs 2.02 trillion – higher than the previous high of Rs 1.76 trillion in the previous year.

Pranav Haldia, Managing Director, Prime Database said, “IPOs from new-age loss-making technology start-ups, strong retail participation and huge listing gains were the key drivers driving the IPO boom this year.” Market Tracker.

The average deal size for the IPO was Rs 1,884 crore. The biggest IPO was by One97 Communications (Paytm) for Rs 18,300 crore – historically the biggest offering.

Out of 59 IPOs for which data is available, 36 IPOs received mega responses of more than 10x (of which six IPOs exceeded 100x), while eight IPOs were oversubscribed by more than 3x. The remaining 15 IPOs were oversubscribed between 1x and 3x.

Prashant Singhal, EY, Leader of Emerging Markets, Technology, Media and Telecommunications (TMT), said, “The Indian IPO market has seen some great performances this year, with new-age tech companies leading the way and good traction. Seen in the diversified and industrial products, consumer products and retail sectors. With strong domestic and global demand and significant momentum in 2022, investor sentiment is upbeat as 2021 approaches.

This year also saw an incredible response from retail investors. The average number of applications from retail stood at 1.43 million, compared to 1.27 million in 2020 and 405,000 in 2019. Glenmark Life Sciences (3.39 million) received the most applications from retail in 2021, followed by Devyani International (3.26 million). ) and Secret Scenes (3.18 million).

The volume of shares applied by retail accounted for 135 per cent of the IPO raise, as compared to 156 per cent in 2020. However, the total allocation for retail was Rs 24,292 crore, which was just 20 per cent of the total IPO mobilization (down from 32 per cent in 2020).

According to Haldia, the success of the IPO was further fueled by strong listing performance. Of the 58 IPOs listed so far, 34 have given returns of more than 10 per cent based on the closing price on the date of listing.

Sigachi Industries delivered the highest return of 270 per cent on debut, followed by Paras Defense & Space Technologies (185 per cent) and Latent View (148 per cent).

40 out of 58 IPOs are trading above the issue price (closing price of December 22). Average listing profit was 32 percent, compared to 44 percent in 2020 and 19 percent in 2019.

Twenty-five of the 63 IPOs that hit the market had a prior private equity (PE)/venture capital (VC) investment. The Offer for Sale (OFS) of Rs 24,106 crore by such PE/VC investors is 20 per cent of the total IPO amount. The OFS by the promoters of Rs 31,704 crore was 27 per cent and above of the IPO amount. The amount of fresh capital raised in the IPO in 2021 was Rs 43,324 crore, which is higher than the previous eight years.

The anchor investors collectively accounted for 39 per cent of the total public issue amount. Foreign portfolio investors played a major role as anchor investors, accounting for 24 per cent of their subscription amount, followed by mutual funds at 11 per cent.

Qualified institutional buyers (including anchor investors) accounted for 69 per cent of the total public issue amount.

This year also saw a record number of filings with The regulator, with 115 filings, compared to 50 in 2019 and 2020 put together.

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Hassaan Minhas

Hassaan is a journalist at UsamaSpeaks.com and he deals with Latest News, India News, and Tech News. Hassaan is a very professional and authentic news journalist.

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