IPO Performance in India 2022

23 February 2023
4 min read
IPO Performance in India 2022
whatsapp
facebook
twitter
linkedin
telegram
copyToClipboard

Undoubtedly the year 2022 was the year of IPOs. But unfortunately, the year was a rollercoaster for any investor tracking the IPO market. Due to increased volatility brought on by geopolitical unrest and economic turmoil, the Initial Public Offering (IPO) market saw mixed results in 2022, following a record-breaking performance in 2021.

Compared to the ₹1.2 lakh crore raised by 63 companies in 2021, the best IPO year in 20 years, the IPO market will be elevated over ₹57,000 crores in 2022.

As it happens, some winners recorded massive listing gains, and others could not impress the investors as much as expected.

In this blog, we will have a look at the journey of IPOs in 2022, along with a listing of the best and worst performing IPOs, the most significant IPOs, and the Internet IPOs of 2022-

IPO Summary 2022

People seek IPO investments that earn substantial premium gains upon listing and prompt returns. Then, based on market demand, supply, company growth prospects, IPO valuation, international factors, market sentiments, and peer pricing, the listing price is chosen.

What do the bleak economic outlook, high inflation, and rising interest rates mean for businesses, though?

It makes it difficult for them to raise money, among other things. Because of this, 2022 has not been a great year for businesses looking to go public.

Companies can sell shares through this procedure, known as an initial public offering or IPO, and raise money to support expansion or settle debts. As a result, they may be able to alter their organizational structure and broaden their shareholder base.

According to research from EY, global IPO volumes decreased by 44% from January through September compared to last year, and IPO proceeds decreased by 57%.

Every region being tracked saw a decline in activity. For example, in India, following a record-breaking performance in 2021, the IPO market produced erratic results in 2022.

In actuality, 2021 marked the Indian IPO market's best year in the previous 20 years. The IPO market, however, only managed to make about half (60 lakh crore) of the money it did the year before in 2022.

Geopolitical tension brought on by the Russia-Ukraine crisis at the start of 2022, followed by the global economic crisis, was a significant factor in the IPO market's mixed performance in that year. 

Significant public issues like Delhivery and AGS Transact Technologies are among the worst-performing initial public offerings (IPOs) of 2022, trading for less than 25% of their issue price. In contrast, IPOs like Venus Pipes and Tubes, Adani Wilmar, and Hariom Pipes Industries have performed incredibly well after going public. As a result, they have become one of the multi-bagger IPOs on Dalal Street.

Mega Listing Gains 2022

Many IPOs listed in 2022 saw bumper listings.

Here is a list of stocks that saw the highest listing gains in 2022-

Stock

Listing Gain

Adani Wilmar

183%

Hariom Pipe Industries

137%

Venus Pipes & Tubes

121%

Veranda Learning Solutions

100%

Prudent Corporate Advisory

60%

Vedant Fashions

55%

Campus Activewear

55%

Electronics Mart India

44%

Aether Industries

42%

Paradeep Phosphates 

39%

Those That Disappointed 2022

Some IPOs in 2022 failed to impress investors.

Here is a list of IPOs that observed the highest listing day discounts in 2022-

Stock

Listing Discount

AGS Transact Technologies

-58%

Life Insurance Corporation of India

-31%

Delhivery

-31%

Uma Exports

-30%

Inox Green Energy Services

-11%

Keystone Realtors

0%

In India, 2022 has been an excellent year for initial public offerings. In 2022, a record number of companies went public. This has been made possible by the government's pro-business policies and quick digitization. The number of investors who are participating has also been steadily rising.

It is time to consider how the IPO scene will probably be in the context of the Indian stock market as the new year approaches. The Securities and Exchange Board of India has received many Draft Red Herring Prospectus (DRHP) filings from various organizations (SEBI).

Given the favorable environment for public issues, these businesses that have already filed their initial prospectuses will most likely start taking applications from the general public in January.

Lastly, the IPO rush will also likely continue in the next year. Further, this is expected to be even more significant than any IPO in the Indian stock markets. We hope you found this update insightful.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Himanshu Sinha

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
Do you like this edition?
LEAVE A FEEDBACK
ⓒ 2016-2024 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 4.7.4
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  GROWWMF |  SBI |  AXIS |  HDFC |  UTI |  NIPPON INDIA |  ICICI PRUDENTIAL |  TATA |  KOTAK MAHINDRA |  DSP |  CANARA ROBECO |  SUNDARAM |  MIRAE ASSET |  BANDHAN |  FRANKLIN TEMPLETON |  PPFAS |  MOTILAL OSWAL |  INVESCO |  EDELWEISS |  ADITYA BIRLA SUN LIFE |  LIC |  HSBC |  NAVI |  QUANTUM |  UNION |  IDBI |  ITI |  MAHINDRA MANULIFE |  360 ONE |  BOI |  TAURUS |  JM FINANCIAL |  PGIM |  SHRIRAM |  BARODA BNP PARIBAS |  QUANT |  WHITEOAK CAPITAL |  TRUST |  SAMCO |  NJ |  BAJAJ