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Sparsh Goel

10 February 2022

Analysis on best IPO offerings of 2021

List of 20 Best IPO offerings in 2021

Table 1

Best performing IPOs in 2021

Date IPO Name Listing Gains Current Gains (%)

(%)

15–11-21 Sigachi Ind 270.4 127.58

01-10-21 Paras Defence 185 297.14

23-11-21 Latent View 148.02 157.08

29-07-21 Tatva Chintan 113.32 140.06

02-02-21 Indigo Paints 109.31 32.68

10-11-21 FSN E-Co Nykaa 96.15 66.97

15-03-21 MTAR Tech 88.22 285.38

19-07-21 Clean Science 76.13 158.87

25-02-21 Nureca 66.66 326.64

23-07-21 Zomato 65.59 23.95

13-12-21 Tega Industries 60.15 12.65

14-09-21 AMI Organics 53.2 67.54

30-03-21 Nazara 43.22 92.22

28-12-21 Supriya Lifesci 42.46 70.60

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28-06-21 Dodla Dairy 42.31 21.79

16-08-21 Devyani Int 37.06 98.33

21-12-21 C.E. Info Syst 35 45.78

05-07-21 Krishna Inst. 32.95 64.61

09-08-21 Rolex Rings 29.62 45.05

05-03-21 Heranba 29.55 11.45

Reasons for their best performance

The year 2021 has been a bumper period for the Indian primary market with 63

companies collectively raising Rs 1.2 lakh crore through initial public offerings - the highest

amount ever raised in a single calendar year. For the first time, retail investors got a chance to

buy shares of new-age and consumer tech companies as well as startups. IPOs from Paytm,

Zomato, Policybazaar, Nykaa (FSN E-Commerce Ventures) and Star Health generated

optimism among investors, given their strong presence in the consumer market. This was also

a record year in terms of subscription figures, number of IPOs exceeding Rs 5,000 crore, and

premium listings. Globally, too, it was a great year, given the availability of ample liquidity.

“The Indian IPO market was very robust in 2021 but it benefitted from a record high

global IPO market,” said Abhay Agarwal, founder of Piper Serica Advisors. “At $17.5 billion

of IPOs in 2021, India is still one-fifth the size of China and one-tenth the size of funds raised

by the US IPOs.”

With Indian markets on a record-breaking run for most part of the year, investors

lapped up majority of the IPOs. The primary market remained buoyant even as the market

corrected over 10% from record highs in October with central banks' policies taking a
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hawkish turn and Omicron variant cases surging. December was one of the busiest months

for the IPO market with 11 companies coming up with their IPOs.

An analysis of the listing performance of large IPOs shows investors have been

indifferent to the size of the issues. Among the top 15 IPOs by issue size in 2021, only 6 are

trading above their issue prices. Companies such as Zomato, PowerGrid Infrastructure

Investment Trust, Sona BLW, and FSN E-Commerce Ventures (beauty e-commerce platform

Nykaa's parent) are up 21-155% above their respective issue prices.

The average number of applications from retail was 14.36 lakh compared with 12.77

lakh in 2020 and 4.05 lakh in 2019. The highest number of applications from retail in 2021

was received by Glenmark Life Sciences (33.95 lakhs) followed by Devyani International

(32.67 lakhs) and Latent View (31.87 lakhs). The amount of shares applied for by retail was a

huge 135 per cent of the IPO mobilisation (156 per cent in 2020). However, the total

allocation to retail was Rs 24,292 crore, which was just 20 per cent of the total IPO

mobilisation. This was down from 32 per cent in 2020.

The success of IPOs was further buoyed by strong listing performance. Of the 58

IPOs which have got listed thus far, 34 gave a return of over 10 per cent. Sigachi Industries

gave a stupendous return of 270 per cent followed by Paras Defence (185 per cent) and

Latent View (148 per cent).

Anchor investors collectively subscribed to 39 per cent of the total public issue

amount. FPIs played a dominant role as anchor investors, with their subscription amounting

to 24 per cent of the amount followed by MFs at 11 per cent. Qualified Institutional Buyers

(including Anchors Investors) as a whole subscribed to 69 per cent of the total public issue

amount. FPIs, on an overall basis as anchors and QIB, subscribed to 30 per cent of the issue

amount followed by MFs at 16 per cent.

Upcoming IPO Stocks to watch in 2022

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2022 is also seeing a slew of initial public offers (IPOs) in the pipeline, after two-

thirds of new entrants on stock exchanges in 2021 saw a robust response from investors. IPOs

of state-run LIC as well as private companies such as Delhivery, Ola, Pharmeasy and Bajaj

Energy are likely in the coming months.

Some of the IPOs to look for in 2022 are:

IPO Name Tentative Issue Tentative Date Important Details

Size (In
Rs.Crores)

LIC 70,000 March 22 10% of shares are proposed to be alloted

to existing LIC policyholders. This is one
of the most awaited upcoming IPO 2021.
Fincare 1,330 2022 Issue of fresh shares worth Rs 330 crore
Small and an OFS of up to Rs 1,000 crore from
Finance promoter Fincare Business Services Ltd.
Bank
Bajaj 5,450 2022 The proceeds from the IPO will be used
Energy to acquire Lalitpur Power Generation
Company (LPGCL)
Studds 98 + OFS 2022 Around 4 lakh equity shares of the
Accessories company are likely to be offered to the
public through the OFS.
Apeejay 1,000 2022 Fresh issue of up to Rs.400 crore and an
Surrendra offer-for-sale (OFS) of up to Rs.600
Park Hotels crore.

GoAir 3,600 2022 The airline has rebranded itself as

‘Go First’
It also plans to raise up to Rs. 1,500 crore
by way of a pre-IPO placement. This is
one of the new upcoming IPO.
Ola 7,300 2022 Ola’s IPO may result in the company
achieving a valuation at the tune of $12-
14 billion.
Mobikwik 1,900 2022 Mobikwik recently turned into a unicorn
– a startup with equal to or over $1
billion valuation. This is expected to be
the latest upcoming IPO.
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Conclusion

The year gone by saw as many as 63 companies launch their mainboard IPOs on

Dalal Street, to raise around Rs 1.2 lakh crore -- about 4.5 times more than the the previous

year in value terms and twice the value in 2017, among the best years for IPOs in the recent

past. Sigachi Industries, Paras Defence, Latent View, Tatva Chintan, Indigo Paints, GR

Infraprojects and Nykaa were among the most sought after debutants among investors. These

IPOs at least doubled investors' money on the listing day itself. As many as 45 IPOs

commanded a premium on the day of their debut on stock exchanges BSE and NSE.

On the other hand, Windlas Biotech, Paytm (One97 Communications), RateGain

Travel, Shriram Properties and Kalyan Jewellers, finishing the listing day at discounts to the

tune of 13-57 percent to the issue price, were among the worst debutants of 2021.

Year 2021 belonged to India’s technology startups. And that's not just because they

raised more than $36 billion from the private market or that 43 of them became unicorns.

Some of the biggest tech start-ups in the country – most of them either loss-making or

just about in the black – hit the bourses this year. These companies accounted for more than

$6 billion of the estimated $24 billion raised by initial public offerings (IPOs) in India in

2021. And the IPO rush for startups is set to continue in 2022.

The liquidity-driven, record high rally in the secondary markets in 2021 also created a

boom in the primary markets. The frenzy for initial public offerings is expected to continue in

2022, with the Life Insurance Corporation of India IPO expected to push the level of public

issues to Rs 2 lakh crore, experts said.

Sources

https://www.moneycontrol.com/ipo/ipo-historic-table?classic=true

https://economictimes.indiatimes.com/markets/ipos/fpos/2021-a-blockbuster-year-for-public-

offers-despite-hiccups/articleshow/88627581.cms
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https://www.chittorgarh.com/ipo/ipo_perf_tracker.asp?year=2021

https://www.indmoney.com/articles/upcoming-ipos-in-2022

https://www.cnbctv18.com/market/stocks/upcoming-ipos-feb-2022-initial-public-offers-

upcoming-listings-lic-ipo-ola-pharmeasy-delhivery-ixigo-12305252.htm

https://www.moneycontrol.com/news/business/ipo/boom-to-continue-rs-2-lakh-crore-ipos-

likely-in-2022-but-all-eyes-on-valuations-7880021.html