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IPO Performance in India 2021

03 January 2022
5 minutes

Undoubtedly the year 2021 was the year of IPOs. From big names such as Paytm and Nykaa to bumper listings of Latent View Analytics and Sigachi Industries, the year was a rollercoaster ride for any investor tracking the IPO market. 

As it happens, there were some winners that recorded massive listing gains and there were some others who could not impress the investors as much as they were expected to. 

In this article, we will have a look at the journey of IPOs in 2021: 

IPO summary 2021

Through the IPO route, companies raised a record Rs 1.2 lakh crore in India in 2021. This the highest amount of money raised in any calendar year in India. 

As per data by BSE, a total of 63 Indian companies went for an IPO during the year. And, as many as 115 companies filed their offer documents with SEBI for approval this year. 

Mega listing gains 

Many IPOs listed in 2021 saw bumper listings. 

Here’s a list of stocks that saw the highest listing gains in 2021: 

Stock  Listing Gain
Sigachi Industries 249.69%
Paras Defence 168%
Latent View Analytics 159.9%
GR Infraprojects 104.9%
Tatva Chintan 95.01%
Clean Science 95%
GoColors 89.86%
MTAR 85%
Nazara Tech 80%
Nykaa 79.38%

Those that disappointed 

There were also some IPOs in 2021 that failed to impress investors. 

Here’s a list of IPOs that observed the highest listing day discounts in 2021: 

Stock  Listing Discount
Shriram Properties 23.73%
RateGain Travel 15.29%
Kalyan Jewellers 15%
Nuvoco Vistas 14.91%
Metro Brands 12.60%
Lodha Developers 10.29%
Paytm 9.30%
Craftsman Automation 9.00%
Star Health 6.11%
Fino Payments Bank 5.72%

Largest IPOs of 2021

Here’s a list of the 5 largest IPOs of the year arranged as per issue size: 

IPO  Issue Size (in Rs crore)
Paytm 18300
Zomato 9375
Star Health 7249
PB Fintech 5625
Nykaa 5352

Internet IPOs of 2021 

Among the 63 IPOs that came out last year, there were a few big names of internet IPOs. 

In the year 2021, as many as 33 Indian startups became ‘unicorns’ ($1 billion valuation) while the country’s total unicorn tally crossed 53. Thus marking 2021 as a big year for Indian startups. 

When Zomato, a loss making startup, became the first unicorn to hit the public markets, the rest of the tech startup world was keen on observing the results of the IPO.  

Post this tech IPO came many others – including Paytm and PB Fintech. Meanwhile Nykaa became the first profitable unicorn startup to make its debut on the stock markets. 

Many other venture capital and private equity backed tech startups including Mobikwik, Snapdeal and Ola, are expected to launch their IPOs in 2022. 

Let’s look at the highlights of some tech IPOs from 2021: 

  • Paytm

Paytm has been the talk on Dalal street since the beginning of the IPO frenzy. ‘Paytm karo’ is a line that many Indian households say and listen to almost everyday now. 

The mega Paytm IPO, one of the IPO listed in 2021, finally opened for subscription between 8th November and 10th November. 

The goal? To raise Rs 18,300 crore. This is the largest IPO ever in the Indian stock market history. 

Coal India is the second largest IPO. It had an issue size of nearly Rs 15,500 crores while the third largest IPO was that of General Insurance. Its issue size was over Rs 11,000 crore. 

The Paytm IPO received 1.66 times subscription from retail investors. But, when it listed, it saw a listing discount of 9.30%. 

Despite the hype, many reports mentioned that investors were hesitant about the Paytm IPO citing valuation worries and doubts about the business model. 

  • Nykaa

On the other hand, a startup IPO that saw a mega listing was Nykaa. 

It was subscribed 12.24 times by retail investors and saw a listing gain of nearly 80%. 

The IPO made Nykaa’s Falguni Nayar India’s first female self made billionaire. 

  • Zomato

Another big name on our list of famous IPO 2021 India is Zomato – the app that delivers food to its super hungry customers. 

Zomato’s IPO went live for subscription on July 14 and was largely seen as a success as it received 7.45 times bidding from retail investors. 

The stock listed on NSE with a listing gain of 52.63%. 

  • PB Fintech

PB Fintech, the parent company of PolicyBazaar and PaisaBazaar, was one of the startup IPOs in 2021

It was open for subscription between November 1 and November 3. 

It received 3.31 times subscription from retail investors and listed with a 17.35% gain. 

More to come

Despite the pandemic’s effects on the operations and working of the economy, IPOs saw a mega year in 2021. Investors also saw a record number of IPOs getting rapid approval from SEBI. 

In a significant update, SEBI cleared a set of proposals aimed at primary market reform in its meeting on December 28, 2021. 

The rules are aimed at addressing the price volatility that stocks witness on the day of their listing, or when prominent shareholders sell their stake in the company.

Read more on Groww: SEBI Tightens IPO Norms, Brings in New Regulations

SEBI has mandated that shareholders that own more than 20% stake in the company can only sell up to 50% of their stake on listing day. 

Further, the use of funds raised through the IPOs will now be monitored by rating agencies. 

Here are some of the major IPOs that are expected to launch in 2022: 

  • LIC 
  • Ola
  • Snapdeal 
  • Delhivery 
  • Flipkart 
  • SBI Funds Management
  • Fab India
  • MobiKwik 
  • PharmEasy

Over 15 companies filed their draft red herring prospectus (DRHPs) in the fourth quarter of 2021, planning to float their IPOs between January and March of 2022. 

Along with these slew of IPOs in 2022, companies such as Byju’s could also come out with an IPO in 2022. 

The IPO rush is likely to continue in the next year as well, with all eyes set on the LIC IPO. This is expected to be even bigger than any IPO in Indian stock markets. 

However,  Omicron impact on the markets has to be a factor to look out for. 

We hope you found this update insightful. 

For more information on IPO 2021 India, you may read: IPOs list

Disclaimer: The content presented here is only for educational and informational purposes. It is not intended to be advice on what to buy or sell. 

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