The strong response received by IPOs in the year 2020 has made retail investors, investment bankers, promoters of companies and private equity funds rich. In view of this, IPOs are expected to fall this year. Investment bankers from various companies told Moneycontrol that about 2 dozen IPOs are in the pipeline for launch this year. So far this year, 5 IPOs have come and 4 of them have been listed in the stock market. Among them, except for the IPO of Indian Railway Finance Corporation (IRFC), all the listings are at a premium.
This year, investors’ love has been the highest IPO of Indigo Paints and it has given investors 110% return on the day of listing. At the same time, the IPO of Home First Finance Company and Stove Craft also received good response. In 2020, IPOs have given an average of 42% return. At the same time, the investors who invested in it in 2019 got an average return of 20% and in 2018 only 6%. Prashant Tapase of Mehta Equities said that the GDP growth in the coming quarters will give a further boost to the equity market and further strengthen the IPO market.
These IPOs gave tremendous returns
IPOs launched in 2020 are subscribed 75 times on average. At the same time, in 2019, they were subscribed only 32 times. The IPO of Mrs. Bectors has been subscribed 199 times. On the day of listing on the stock market in 2020, 9 out of 13 IPOs were listed at a premium. Burger King, Happiest Minds and Root Mobile are among the 13 IPOs that have given tremendous returns to investors. Burger King was listed at a premium of 131% while Happiest Minds at 123%.
How about 2021 for IPO
2020 has been shocking in every sense. The stock market collapsed in March, then a record boom in the stock market amid the outbreak of the Corona Virus epidemic, the V-Shaped recovery in stocks and the spectacular response to IPOs making it an unprecedented year. But the year 2021 has proved to be more good for investors. The Sensex and the Nifty have recorded record gains. Budget 2021 has given a tremendous boost to the stock market and experts say that 2021 will prove to be better than 2020 in terms of response to IPOs, as economic recovery will benefit the stock market tremendously.
These IPOs will be launched this year
Encouraged by the success of IPOs in 2020, at least two dozen companies are going to IPO in 2021. Kalyan Jewelers plans to launch an IPO of Rs 1700 crore. At the same time, Suryodaya Small Finance Bank will bring an IPO of Rs 400 crore. Similarly, the IPA of ESAF Small Finance Bank will come to Rs 1000 crore. Lakshmi Organic Industry will bring an IPO to raise Rs 800 crore and Craftsman Automation to raise Rs 180 crore.
IPOs of these companies are also in the pipeline
Barbeque Nation 1000 to 1200 crore rupees, RailTel will bring IPO of 700 crore rupees. Apart from these, IPOs of dozens of companies like NSE, Shyam Steel, Annai Infra Developers, NCDEX, Bajaj Energy Limited, Powerica Limited, SAMHI Hotels, HDB Financial Services, TCIL, Studds Accessories, Jomato, Grofers, Narmada Biochem Limited to be launched in the year 2021 Are in the pipeline.