2021 has been a great year for the primary market. It created history in terms of annual fund raising, subscription numbers, highest ever listing, listing gains and number of multibaggers. This year 15 IPO stocks have proved to be multibaggers. At the same time, there have been 15 companies that have disappointed investors and have seen double digit corrections.
Looking at the overall advance decline ratio of the IPO market, the number of IPO stocks rising has been higher than the number of losers. Nearly 70 percent of the IPO stocks that came this year have closed in the green today. In fact, the boom in the secondary market fueled the enthusiasm in the primary market as well. This happened not only in India, but this was the condition of the whole world.
Abhay Agarwal of Piper Serica told Moneycontrol that a total of $45 billion has been raised in 2021 through IPOs all over the world. Low rate of interest rates, easily available capital, improvement in the case of COVID-19, increasing pace of corona vaccination, steps taken by all the governments and central banks around the world to give relief to the economy and increasing number of retail investors. The stake supported the market sentiment.
Healthcare firm Nureca Ltd and Paras Defense & Space Technologies Ltd are among the top 2 stocks in the list of Multibagger IP Stocks for 2021. These stocks have seen an increase of 300% so far from their issue price. After this the next 2 stocks are MTAR Technologies and Laxmi Organic Industries. In these, 297 and 230 percent have been seen so far from the issue price.
Similarly, in case of other multibagger IPO stocks, Latent View Analytic, Easy Trip Planners, Clean Science, Barbeque-Nation Hospitality, Macrotech Developers, Stove Kraft, Sona BLW Precision, Tatva Chintan Pharma, Sigachi Industries, Nazara Technologies and GR Infraprojects include this. During the year, they have shown an increase of 106-182 per cent from their issue price.
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A few more IPOs that came this year created a stir in the market. However, so far their returns have been below 100%. This includes the names of Nykaa, Zomato, MapmyIndia and Devyani International.
But market experts are skeptical that 2022 will be equally good for the IPO market. Market experts say that going forward, we may see central banks tightening their monetary policy, due to which interest rates may increase. Apart from this, in the coming year, investors will be more careful about valuations.
Yuvraj A. Thakker of BP Wealth It says that 2021 was an unusual year due to reasons like high liquidity, increasing number of investors, rapid vaccination. We may see a decline in the number of multibagger stocks in 2022. There may be the same number of IPOs in 2022 as well but valuations will be the mainstay of their success. The market will not rush and embrace every IPO, rather investors will consciously invest in quality IPOs with good valuations.
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