The year 2021 proved to be an eventful year from the standpoint of the Initial Public Offerings (IPO) as we witnessed many blockbuster issues during this year. Market expert Vikas Sethi said that this year could see record collections from the primary markets, never seen before. 

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Sethi, who is Managing Director (MD) at Sethi Finmart, said that many IPOs that were launched this year were by the new-age companies. Many of them received strong response from the investors despite being unprofitable, the MD said. Some of these stocks are still going strong after getting listed at significant premiums, he added.  

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However, many companies witnessed a lackluster response, especially the ones whose IPOs were launched recently, he said. It was also because the secondary markets saw a phase of major corrections, Sethi said. 

He was optimistic about 2022 and said that he expected the IPO markets to remain under the boom over the next year, including that of Life Insurance Corporation of India (LIC) - the mother of all IPOs – and NSE. 

Zee Business Research Analyst Varun Dubey in his research said that 65 companies launched their IPOs in 2021. Over Rs 1.3 lakh crore was raised through these public issues where the new age companies accounted for Rs 47,000 crore.  

Dubey said that 11 new-age companies launched their IPOs this year. A more granular analysis reveals that 52 per cent of the Rs 47,000 crore that was raised by these new age companies was from the Offer For Sale (OFS) while the remaining 48 per cent was through issue of fresh shares.  

This translates into Rs 24,440 crore raised via OFS, while Rs 22,560 crore was raised through the issue of fresh shares.  

Out of the 11 new-age companies that have been listed this year, 5 are trading positively, while 6 are trading below the issue price. These 11 new-age companies' IPOs' are Paytm, Nykaa, Rate Gain, MTAR Technologies, Nazara Tech, MapmyIndia, PB Fintech, among others.

While profitability has been one of the talking points for the new age companies, there were certain companies, which have remained profitable, Dubey said. These companies include Nykaa, Rate Gain. 

Rate Gain and One 97 Communications-backed Paytm listed at discounts that resulted in investors losses. Paytm was big in terms of size, Dubey said.  

Meanwhile, MTAR Technologies and Nazara Tech which received highest subscription at 200 and 176 per cent. They were also among companies which had the best listing on the exchanges.  

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Nazara Tech has been the biggest hit and is trading above Rs 2200 on the NSE. The Rakesh Jhunjhunwala-backed company has returned over 600 per cent gains from the listing issue price of Rs 305.