Indian IPO Market 2020: Today, on December 24, Mr. Bectors Food has entered the stock market strongly. Mr. Bectors Food’s stock was listed in the market with a premium of 74 per cent and after some time, the issue price rose about 104 per cent. The share price for the issue was Rs 288, while on the same day of listing on BSE it reached Rs 580. In December itself, Burger King India was listed with a 92 percent premium. That is, the investors who put money in it, their money doubled on the listing itself. The IPO market has been very good in 2020. Of the IPOs that have come, about 60 per cent have been listed with a premium.
2020 Super Hit for IPO
The year 2020 has proved to be a super hit in terms of IPO market. In the last 10 years, this listing has proved to be number 1 in Gain’s case. So far, 14 IPOs have come, out of which 8 have been listed with an increase. That is, about 60 per cent of the IPOs had investors profit on the same day of listing. At the same time, up to 225 per cent returns have been received in the upcoming IPO this year. Whereas from March to September this year, companies have been avoiding IPO due to lockdown. Most IPOs have come only from September to December. Companies are looking for a good way to raise money through an IPO amid an improving economy.
Listing gains and returns
SBI Cards, Rosary Biotech, Root Mobile, Happiest Minds, Cams, Chemcon Specialty, Angel Broking, UTI AMC, Mazgaon Dock, Equitos Bank, Gland Pharma, Burger King, Mr. Bectors Food and Antony vest handling cell included.
Listing gain: 115%
Issue Price: Rs 340, Listing: Rs 731
Return so far: 21%
Listing gain: 111%
Issue Price: 166, Listing: Rs 351
Return so far: 114%
Listing gain: 102%
Issue Price: Rs 350, Listing: Rs 708
Return so far: 225%
Listing gain: 92%
Issue Price: Rs 60, Listing: Rs 115
Return so far: 212%
Mr. Bectors Food
Listing gain: 74%
Issue Price: Rs 228, Listing: Rs 501
Return to date:
Listing gain: 58%
Issue Price: Rs 425, Listing: Rs 670
Return so far: 125%
Listing gain: 49%
Issue Price: Rs 145, Listing: Rs 216
Return so far: 48%
Listing gain: 25%
Issue Price: Rs 1230, Listing: Rs 1535
Return so far: 37%
Listing gain: 14%
Issue Price: 1500, Listing: Rs 1710
Return so far: 60%
Listing gain: -6%
Issue Price: Rs 33, Listing: Rs 31
Return so far: 11%
Listing gain: -10%
Issue Price: Rs 306, Listing: Rs 275
Return so far: 11%
Listing gain: -12%
Issue Price: Rs 554, Listing: Rs 490
Return so far: 1%
Listing gain: -13%
Issue Price: Rs 755, Listing: Rs 658
Return so far: 10%
Listing shares also increased at a discount
It is clear from the above chart that the IPO whose listing was done at a discount also saw a subsequent growth. All the returns from the listing are positive. However, some stocks have weakened after their listing gains. Antony West IPO is yet to be listed in these 14.
2021: Be ready, these companies are bringing IPO
LIC may come for IPO: In 2021, the IPO of Life Insurance Corporation of India (LIC) may come. The exercise of bringing IPO has been going on for a long time, but no clear decision can be taken in this regard yet. The government had sought applications from actuarial companies for its insurance valuation before selling a stake in the largest insurance company Life Insurance Corporation of India (LIC). The government plans to sell its stake in LIC and list it in the stock market. Deloitte and SBI Capital have been appointed as consultants for this.
Kalyan Jewelers: The size of the IPO will be Rs 1750 crore. The company plans to issue up to Rs 1,000 crore of new equity shares under IPO and raise Rs 750 crore through OFS.
Rail Tail: Rail Tel has received approval from Sebi to raise Rs 700 crore through an IPO. Under this, the government will sell 8.66 percent stake. In December 2018, the cabinet had approved an IPO for sale of up to 25 per cent government stake in RailTel Corporation.
Bajaj Energy: Bajaj Energy aims to raise Rs 5450 crore from the IPO. SEBI allowed the company to do it last year. According to the documents submitted by the company, under this IPO, the company will issue new shares worth Rs 5,150 crore. At the same time, the company’s current shareholder Bajaj Power Ventures is going to offer for sale of shares worth Rs 300 crore from its stake.
Suryoday Small Finance Bank: 950 to 1000 crores
View Technologies: 900 to 1000 crores
Antony Waste Handling Sale: 100 to 500 crores
(Source: Merchant Bankers)