With IPOs (Initial Public Offering) galore, it is natural for investors to get drawn towards investment opportunities that are in the news for all the right reasons. If you have been even remotely aware of the happenings around you, then it is unlikely that you could have missed IPOs of some stalwarts like Nykaa, Latent Analytics and also Paytm (although not for the same reasons). There is a definite buzz around the IPO market, there are many more companies that are lining up to go public. Here’s a retrospective look at all the IPOs that debuted in 2021 and how they have fared as of date (28 Jan, 2022).
IPOs 2021 vs. IPOs earlier:
We are not joking when we say that the year 2021 was raining IPOs, there were a whopping 63 IPOs listed in the year 2021, against an average of ~14 IPOs over the past 3 years. The highest listing gain during the year 2021 was an unprecedented 270% by “Sigachi Industries”, an industry leader in the area of Pharma Excipients, Nutra and food ingredients.
Year
No. of IPOs listed
Average listing gains
Highest listing gains
Lowest listing gains/losses
2021
63
31.03%
270.4%
-27.25%
2020
13
47.24%
130.67%
-13.97%
2019
12
5.15%
53.9%
-54.46%
2018
16
6.12%
65.13%
-14.44%
Source: Moneycontrol; Jan 28, 2022
There is continued interest around IPOs as many companies are lining up with the SEBI with the intent of raising funds from the public. The spotlight is clearly on the IPO market, and investors are particularly impressed by the way things have panned out in the IPO market especially in the last year. Here’s a breakdown of the winners and the losers and the story behind the IPOs which left a mark.
The winners:
Out of the 63 IPOs in 2021, 46 had listing gains which translate to 73%, about 17 IPOs fell flat by posting losses on the listing:
• Zomato:
Zomato had the highest issue size with Rs. 9375 crores among the winners, the stock was also a pioneer IPO within the food delivery app sector, Swiggy is likely to follow suit and float its IPO shortly. Zomato was listed amidst concerns of being an over-valued stock, however managed to deliver ~66% returns upon listing. It has, however, moderated over time and currently trades ~17% above its listing price.
• Nykaa:
Nykaa’s IPO was another pioneer within the e-commerce (speciality cosmetic) industry, again a noteworthy debut that remained in the eye of the storm. Amidst valuation challenges and concerns of sustained interest upon listing, it delivered a whopping 96% upon listing, it continues to trade ~45% above the listing price. This was the only new age IPO which was profitable.
• PB Fintech:
PB Fintech was a fintech company that raised ~Rs. 6200 crores via the IPO route, managed to clock 22% listing gains, in contrast, Latentview Analytics which operates in the modern–tech space raised a modest Rs. 622.11 crores and delivered a 148% listing gains, the stock continues to trade at over 150%.
• Paras Defence:
Paras Defence, a defence engineering company, raised a modest Rs. 181.13 crore, debuted with 185% listing gains and currently trades at 280% above listing price.
Some of the above are classic examples of ‘good things come in small packages.
Date
IPO Name
Issue Size (in Crs)
Listing Gains %
Current Gains %
15-11-21
Sigachi Ind
NA
270.4
107.24
1/10/21
Paras Defence
181.13
185
280.57
23-11-21
Latent View
622.11
148.02
150.15
29-07-21
Tatva Chintan
500
113.32
125.02
2/2/21
Indigo Paints
1170.56
109.31
31.54
19-07-21
G R Infra
963.28
108.7
125.38
10/11/21
FSN E-Co Nykaa
5375
96.15
46.56
15-03-21
MTAR Tech
596.41
88.22
277.39
19-07-21
Clean Science
1546
76.13
153.99
25-02-21
Nureca
100
66.66
339.5
23-07-21
Zomato
9375
65.59
17.7
13-12-21
Tega Industries
619.23
60.15
13.85
14-09-21
AMI Organics
571.96
53.2
61.31
30-03-21
Nazara
582.91
43.22
96.64
28-12-21
Supriya Lifesciences
700
42.46
68.7
28-06-21
Dodla Dairy
521
42.31
21.62
16-08-21
Devyani Int
1858
37.06
86.17
21-12-21
C. E. Info Syst
1039.61
35
30.99
5/7/21
Krishna Inst.
2146
32.95
66.98
9/8/21
Rolex Rings
732.27
29.62
35.85
5/3/21
Heranba
60
29.55
14.18
1/1/21
Antony Waste
300.53
29.29
1.76
26-02-21
Railtel
819.24
29.15
22.18
24-12-21
Data Patterns
601.2
29.03
27.26
26-11-21
Tarsons Product
1030.22
26.89
-1.05
25-03-21
Laxmi Organic
600
26.62
233
24-06-21
Sona BLW
5550
24.69
115.29
24-06-21
Shyam Metalics
909
22.83
9.53
15-11-21
PB Fintech
6273.5
22.74
-20.45
27-12-21
HP Adhesives
125.96
22.24
43.45
7/4/21
Barbeque Nat
453.6
18.08
174.98
14-09-21
Vijaya Diagnostics
1895.04
16.63
-3.43
5/2/21
Stove Kraft
412.63
15.83
129.53
7/7/21
India Pesticide
800
13.33
1.1
19-03-21
Easy Trip
510
11.39
185.59
16-08-21
Exxaro Tiles
161.09
10.21
11.25
24-09-21
Sansera Eng
1282
10.04
0.76
31-12-21
CMS Info System
1100
9.91
22.22
14-12-21
Anand Rathi
660
6.09
7.77
6/9/21
APTUS VALUE
2790
5.96
1.27
6/8/21
Glenmark Life
1513
3.92
-20.56
16-08-21
Krsnaa Diagnostics
1222
3.85
-28.98
18-11-21
Sapphire Foods
2073
3.06
11.24
14-05-21
PowerGrid InvIT
7734.99
2.98
29.91
3/2/21
Home First
1153.72
1.81
50.95
10/12/21
Star Health
7318.15
0.76
-11.38
Source: Moneycontrol; Jan 27, 2022
*Current gains as of 28 Jan 2022.
The losers:
While many stole the show, others had a disappointing debut.
• One97 Paytm:
One97 Paytm was by far the most hyped IPO of 2021 which fell flat by 15% on listing day and continues to trade at ~15% below the listing price. Interesting it was the largest IPO by issue size, there is no such thing as ‘too big to fail!’.
Another noteworthy debacle was that of Kalyan Jewellers, which was surrounded by controversy, debuted with a loss of 13% and trades ~24% below the issue price.
Date
IPO Name
Issue Size (in Rs. Crs)
Listing Gains %
Current Gains %
18-11-21
One 97 Paytm
18915.9
-27.25
-58
17-12-21
Rategain Travel
1354
-19.88
-11.46
20-12-21
Shriram Prop
600
-15.76
-14.24
26-03-21
Kalyan Jeweller
1175
-13.45
-23.91
16-08-21
Windlas Biotech
405.95
-11.59
-43.88
26-03-21
Suryoday Small
582.34
-9.44
-54.7
20-08-21
CarTrade Tech
2998
-7.29
-59.76
23-08-21
Nuvoco Vistas
5089.29
-6.79
-21.31
15-11-21
SJS Enterprises
816.57
-5.93
-26.68
12/11/21
Fino Payments
1209
-5.5
-32.02
24-03-21
Anupam Rasayan
760
-5.24
75.69
19-04-21
Macrotech Dev
2500
-4.7
165.43
29-01-21
IRFC
4633
-4.42
-11.15
25-03-21
Craftsman
823.7
-3.83
38.74
11/10/21
ABSL AMC
2768
-1.73
-27.82
22-12-21
Metro Brands
1376.63
-1.29
23.15
24-08-21
CHEMPLAST SANMA
3929.91
-1.13
-6.84
Does it make sense to invest in IPOs?
IPOs have become very tricky at this point, while many individuals apply for these, the allotment is not guaranteed. There are times when you face high disappointment, especially when these stocks for which you applied make a stellar gain on a listing day and continue to soar upwards.
There is an increasing trend of people looking at IPOs for making quick bucks, these individuals typically exit their position on the listing day which is called flipping. This is a good means of making sharp gains over a shorter horizon. However, it requires a trained eye to evaluate the IPOs and ascertain the probability of the stock performing exceptionally well upon listing.
IPOs can also be an excellent entry point for stocks with long term potential, there is a need to evaluate the stock based on the fundamentals, management credibility, plans, utilisation of funds etc.
It is evident that IPOs can provide supernormal returns or can be a disaster in your portfolio. Avail the help of experts at TATA capital Wealth who will guide you through the process of investing based on your risk appetite, asset allocation and investment horizon.
24 February 2022
6 mins read
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