Home Listing rules Highest amount raised thanks to IPOs in 2021. See the list of...

Highest amount raised thanks to IPOs in 2021. See the list of blockbusters

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The Indian primary market has been buzzing throughout the year. 63 companies raised collectively ??1,18,704 crore ($ 15.4 billion) through IPOs in 2021. This is the highest amount raised through IPOs in a calendar year.

The previous best year for IPO was 2017 when ??68,827 crores were collected. In fact, the money raised on the primary market in 2021 is 62% more than the total amount of ??73,003 crore raised over the past three years (2018 to 2020). In 2020, the total funds raised through IPOs in India stood at ??26,613 crore, which was almost a fifth of the crop in 2021. The average size of emissions during the year 2021 was ??1,884 crores.

The uptrend in the stock markets has supported investor interest in IPOs. Indian stock market benchmarks hit new highs during the year. Bombay Stock Exchange (BSE) Sensex hit a record 62,245.43 points while the National Stock Exchange’s (NSE) Nifty 50 hit its all-time high of 18,604.45 points on October 19, 2021.

The record-breaking Indian primary market fundraiser was led by new era technology companies.

“The IPOs of loss-making new era tech start-ups, strong retailer participation and huge listing gains have been the main highlights,” said Pranav Haldea, Managing Director of Prime Database Group.

One 97 Communications, the parent company of digital payments platform Paytm, has raised a huge ??18,300 crore (2.5 billion USD) via the IPO. It is, to date, the largest initial public offering in India. Paytm’s IPO broke the long-standing IPO record of ??15,200 crore set by the state-owned Coal India Limited in 2010.

Although Paytm’s IPO was subscribed 1.89 times, it made a catastrophic debut on the stock market, slumping 27% from its issue price ( ??2,150 per share) on day one due to high valuation and skepticism about its business model.

The second largest IPO during the year was for the online food delivery platform Zomato. The company raised ??9,375 crore from the IPO. It was a huge success, with the IPO having been underwritten 38.25 times. Zomato also made a remarkable debut in the stock markets with a 53% premium over its issue price.

PB Fintech, the parent company of online insurance aggregator Policybazaar and credit comparison platform Paisabazaar, has raised ??5,710 crore from the primary market. It included a new issue of shares worth ??3,750 crore and an offer to sell ??1,960 crore by existing shareholders. The parent company of Policybazaar and Paisabazaar was previously called Etechaces Marketing and Consulting Pvt. Ltd. The name of the company has been changed to PB Fintech Pvt. Ltd. in September 2020 to highlight the nature of FinTech companies.

PB Fintech’s IPO was subscribed 16.59 times. The company debuted in the market with a 17% premium over its issue price.

FSN E-Commerce Ventures, which operates the online beauty e-commerce platform Nykaa, raised ??5,352 crore via the IPO. The IPO of the company headed by Falguni Nayar was a huge success. The IPO was subscribed 81.78 times. It also made a remarkable entry into the stock market with a premium of 79% over its issue price.

The first IPO in calendar year 2021 was that of Indian Railway Finance Corporation Ltd (IRFC), a subsidiary of Indian Railways. IRFC’s IPO was the first public issue by a non-bank railway finance company. IRFC is the branch dedicated to loans in the Indian railway market. IRFC’s IPO was subscribed 3.5 times. The Crown corporation raised ??4,633 crore of primary markets. IRFC has made a tentative start to the market, with its stock listed on the stock exchange at a 4.23% discount to its issue price of ??26.

Another public sector company RailTel Corporation of India (RailTel) has raised ??819 crore from the primary market. RailTel’s IPO was subscribed 42 times. The company made a strong market debut by being listed at a 16% premium over its issue price of ??94.

PowerGrid Infrastructure Investment Trust, which is sponsored by India’s state-owned Power Grid Corporation, has raised ??7735 crore via IPO. This is the third largest IPO of the year. The IPO was subscribed 4.83 times and the share was listed at a premium of 4%.

The Star Health and Allied Insurance Company, led by Rakesh Jhunjhunwala, is closed ??7249 crore via IPO. The company got a lukewarm response on the stock market. Its share was listed at 6 percent off the issue price of Rs. 900 per share.

Paint solutions company Indigo Paints was also among the first to go public during the year. The company raised ??1,176 crore of the primary market. The IPO of the fifth largest company in the Indian decorative painting industry was underwritten 117 times. The company made an exceptional debut on the market by being listed at a premium of 75% over its issue price of ??1490.

Other significant IPOs of 2021 include MedPlus Health Services, Data Patterns (India), Home First Finance, Laxmi Organic, Barbeque Nation, Anupam Rasayan, Kalyan Jewelers, Brookfield India REIT, Stove Kraft, Nureca and Heranba Industries.

India’s second-largest pharmacy retailer, MedPlus Health Services, achieved an impressive IPO with the issue having been subscribed 52.59 times. The company debuted on the stock market with a 30 percent premium.

The simplification of rules by the Securities and Exchange Board of India (SEBI) has led to record fundraising by new age tech companies, which are mostly loss-making. Previous regulations required a company to have profit records in order to be listed on the stock exchange. However, SEBI has changed the regulations. From now on, loss-making companies can also be listed under certain conditions. SEBI’s new regulations have paved the way for the listing of new era technology companies like Paytm and Zomato that have a history of losses.

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