Indian IPO: IPO mart sees best fiscal year ever! 52 firms raise Rs 1.11 lakh crore
The previous best year was FY18 in which companies had raised Rs 81,553 crore from the primary market. In the fiscal 2021, total money raised was Rs 31,268 crore raised through 30 IPOs, data made available by Prime Info Database shows.
The largest IPO in FY22 was from One 97 Communications (Paytm) for Rs 18,300 crore. It was also the largest Indian IPO ever, which will soon be eclipsed by the issue of Life Insurance Corporation of India.
This was followed by Zomato (Rs 9,375 crore), Jhunjhunwala-backed Star Health (Rs 6,019 crore), Policybazaar (Rs 5,710 crore), Sona BLW (Rs 5,550 crore) and Nykaa (Rs 5,350 crore). Four out of the top six IPOs were from new age technology companies which together raised Rs 38,734 crore.
Though, despite some mega issues and encouraging investor response, this was the best year for overall fund mobilisation. Public equity fundraising, that includes SME IPOs, FPOs, QIPs, InvITs and IPPs, dropped to Rs 1.70 lakh crore from Rs 1.90 lakh crore in the preceding year.
Of the 50 IPOs for which data is available as of now, 29 IPOs received a massive response of more than 10 times subscription–with 5 IPOs witnessing more than 100 times, while 8 IPOs were oversubscribed by more than 3 times. The balance 13 IPOs were oversubscribed between 1 to 3 times, data shows.
Retail investors not just became a force to reckon with in the secondary market, the primary market also saw their increased participation. The average number of applications from retail was 14.05 lakh, in comparison to 12.73 lakh in FY21 and 6.88 lakh in FY20. The highest number of applications from retail in 2021-22 were received by Glenmark Life Sciences (33.95 lakhs) followed by Devyani International (32.67 lakhs) and Latent View Analytics (31.87 lakhs).
“Success of the IPOs was further buoyed by strong listing performance. Of the 50 IPOs which have got listed thus far, 30 gave a return of over 10 per cent based on closing price on listing date. Sigachi Industries gave a stupendous return of 270 per cent followed by Paras Defence (185 per cent) and Latent View (148 per cent). Average listing gain was 33 per cent, in comparison to 36 per cent in 2020-21 and 24 per cent in 2019-20,” said Pranav Haldea, Managing Director, Prime Database Group.
The ongoing fiscal year also saw record number of filings with Sebi. As many as 137 companies filed their offer documents with the market regulator for approval. In comparison 2019-20 and 2020-21 cumulatively had a total of just 59 filings.
This bodes well for the upcoming financial year. 54 companies proposing to raise a massive Rs 1,40,000 crore are presently holding Sebi approval. Another 43 companies looking to raise about Rs 81,000 crore are awaiting Sebi nod. Out of these 97 companies, seven are new-age tech firms that are looking to raise Rs 30,000 crore.
“However, IPO activity is likely to remain muted at least for the next few weeks due to high volatility in the secondary market, mainly because of the Russia-Ukraine imbroglio. Additionally, the overall liquidity, especially from FPIs, has also taken a hit following rate hikes from global central banks,” said Haldea.
Activity in the SME segment also increased in FY22 in comparison to FY21. There were 67 SME IPOs, which collected a total of Rs 932 crore in comparison to 28 IPOs that collected Rs 244 crore. The largest SME IPO in FY22 was of Aashka Hospitals (Rs 96 crore).