Why 2021 could be the year of IPOs? All you need to know about action so far in primary market
With the success of the IPOs in the Indian primary market so far, it appears that the IPO craze and rush is not going to fizzle down anytime soon.
There has been a huge rush of Initial Public Offerings (IPOs) in the primary market this year. The number of companies which have debuted on bourses or have submitted IPO papers with the Securities Exchange Board of India (SEBI) is so much so that the Reserve Bank of India had to say that '2021 could be India's year of IPOs.'
"...growth impulse is igniting financial markets. 2021 could well turn out to be India's year of the IPO. Debut offerings by Indian unicorns - unlisted start-ups - kicked off by a food delivery app's stellar IPO that was oversubscribed 38 times, have set domestic stock markets on fire and global investors in a frenzy," the RBI has said in an article on the 'State of Economy'. The RBI was hinting at successful Zomato IPO, which listed at 53 per cent premium on NSE.
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With the success of the IPOs in the Indian primary market so far, it appears that the IPO craze and rush is not going to fizzle down anytime soon. Paras Defence and Space Technologies Limited, the latest in the list, only confirms the confidence IPO enjoys from the investors. This issue went to script history with maximum subscription so far in the history of IPOs in India.
More than 40 companies have been already listed and many are in the pipeline to make their entry in the stock market this year. The buzz in the primary market has been such that it even caused panic among a section of investors that it may impact the secondary market negatively, however, Sensex on Friday took the list possible time of 246 day to add 10,000 points from 50,000 to 60,000.
From startups to chemical firms, this year has seen action in almost all sectors in the primary market. From Indian Railway Finance Corporation Limited (IRFC) IPO on January 8, 2021 to Paras Defence and Space Technologies Limited, there have been 43 companies have made their presence in the stock market till September 24, as per the NSE data.
Interestingly, a majority of these offerings have given massive return to investors. Many of these issues have even opened on 100 per cent or more premium and have witnessed many-fold subscription.
As per a report by news agency PTI in late August, as many as 23 companies have submitted documents with the SEBI, seeking permission for IPO. Interestingly, these requests were received within 20 days of August.
As per the same report, Rs 70,000 crore has been raised through more than 40 IPOs till August 20, while 23 companies that have submitted paper with the market regulator to raise Rs 40,000 crore capital from the primary market.
IPOs that have been listed so far and those that will be listed the next week on the NSE (the data is as per NSE in chronological order of the listing of the issue) are:
1. Paras Defence and Space Technologies Limited
2. Quadpro ITeS Limited SME
3. Sansera Engineering Limited
4. Indiabulls Housing Finance Limited
5. BEW Engineering Limited
6. Ami Organics Limited
7. Vijaya Diagnostic Centre Limited
8. Aptus Value Housing Finance India Limited
9. Chemplast Sanmar Limited
10. CarTrade Tech Limited
11. Nuvoco Vistas Corporation Limited
12. Krsnaa Diagnostics Limited
13. Windlas Biotech Limited
14. Exxaro Tiles Limited
15. Devyani International Limited
16. Rolex Rings Limited
17. Glenmark Life Sciences Limited
18. Tatva Chintan Pharma Chem Limited
19. Zomato Limited
20. Clean Science and Technology Limited
21. G R Infraprojects Limited
22. India Pesticides Limited
23. Krishna Institute of Medical Sciences Limited
24. Dodla Dairy Limited
25. Shyam Metalics and Energy Limited
26. Sona BLW Precision Forgings Limited
27. Macrotech Developers Limited
28 Barbeque-Nation Hospitality Limited
29. Nazara Technologies Limited
30. Suryoday Small Finance Bank Limited
31. Kalyan Jewellers India Limited
32. Craftsman Automation Limited
33. Laxmi Organic Industries Limited
34. Anupam Rasayan India Limited
35. Easy Trip Planners Limited
36. MTAR Technologies Limited
37. Heranba Industries Limited
38. RailTel Corporation of India Limited
39. Nureca Limited
40. Stove Kraft Limited
41. Home First Finance Company India Limited
42. Indigo Paints Limited
43. Indian Railway Finance Corporation Limited
Of the above list, Tatva Chintan Pharma Chem Ltd, G R Infraprojects Limited and Indigo Paints Limited IPOs were the most successful ones with all of these issues giving over 100 per cent premium to their investors, as per NSE listing day details. Similarly, Zomato Limited, Clean Science and Technology Ltd, MTAR Technologies
Limited and Nureca Limited were other IPO success stories, with listing gains of over 50 per cent.
Furthermore, the list does not stop here as many more exciting issues are set to be listed on exchanges later this year. Arohan Financial Services Limited, Fincare Small Finance Bank, ESAF Small Finance Bank, MobiKwik, Aditya Birla Sun Life AMC, Adani Wilmar, policy Bazaar, Aadhar Housing Finance, Ruchi Soya Industries FPO and more are expected to hit the market in 2021.
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