With IPOs (Initial Public Offering) galore, it is natural for investors to get drawn towards investment opportunities that are in the news for all the right reasons. If you have been even remotely aware of the happenings around you, then it is unlikely that you could have missed IPOs of some stalwarts like Nykaa, Latent Analytics and also Paytm (although not for the same reasons). There is a definite buzz around the IPO market, there are many more companies that are lining up to go public. Here’s a retrospective look at all the IPOs that debuted in 2021 and how they have fared as of date (28 Jan, 2022).
IPOs 2021 vs. IPOs earlier:
We are not joking when we say that the year 2021 was raining IPOs, there were a whopping 63 IPOs listed in the year 2021, against an average of ~14 IPOs over the past 3 years. The highest listing gain during the year 2021 was an unprecedented 270% by “Sigachi Industries”, an industry leader in the area of Pharma Excipients, Nutra and food ingredients.
| Year | No. of IPOs listed | Average listing gains | Highest listing gains | Lowest listing gains/losses |
| 2021 | 63 | 31.03% | 270.4% | -27.25% |
| 2020 | 13 | 47.24% | 130.67% | -13.97% |
| 2019 | 12 | 5.15% | 53.9% | -54.46% |
| 2018 | 16 | 6.12% | 65.13% | -14.44% |
Source: Moneycontrol; Jan 28, 2022
There is continued interest around IPOs as many companies are lining up with the SEBI with the intent of raising funds from the public. The spotlight is clearly on the IPO market, and investors are particularly impressed by the way things have panned out in the IPO market especially in the last year. Here’s a breakdown of the winners and the losers and the story behind the IPOs which left a mark.
The winners:
Out of the 63 IPOs in 2021, 46 had listing gains which translate to 73%, about 17 IPOs fell flat by posting losses on the listing:
• Zomato:
Zomato had the highest issue size with Rs. 9375 crores among the winners, the stock was also a pioneer IPO within the food delivery app sector, Swiggy is likely to follow suit and float its IPO shortly.
Zomato was listed amidst concerns of being an over-valued stock, however managed to deliver ~66% returns upon listing. It has, however, moderated over time and currently trades ~17% above its listing price.
• Nykaa:
Nykaa’s IPO was another pioneer within the e-commerce (speciality cosmetic) industry, again a noteworthy debut that remained in the eye of the storm. Amidst valuation challenges and concerns of sustained interest upon listing, it delivered a whopping 96% upon listing, it continues to trade ~45% above the listing price. This was the only new age IPO which was profitable.
• PB Fintech:
PB Fintech was a fintech company that raised ~Rs. 6200 crores via the IPO route, managed to clock 22% listing gains, in contrast, Latentview Analytics which operates in the modern–tech space raised a modest Rs. 622.11 crores and delivered a 148% listing gains, the stock continues to trade at over 150%.
• Paras Defence:
Paras Defence, a defence engineering company, raised a modest Rs. 181.13 crore, debuted with 185% listing gains and currently trades at 280% above listing price.
Some of the above are classic examples of ‘good things come in small packages.
| Date | IPO Name | Issue Size (in Crs) | Listing Gains % | Current Gains % |
| 15-11-21 | Sigachi Ind | NA | 270.4 | 107.24 |
| 1/10/21 | Paras Defence | 181.13 | 185 | 280.57 |
| 23-11-21 | Latent View | 622.11 | 148.02 | 150.15 |
| 29-07-21 | Tatva Chintan | 500 | 113.32 | 125.02 |
| 2/2/21 | Indigo Paints | 1170.56 | 109.31 | 31.54 |
| 19-07-21 | G R Infra | 963.28 | 108.7 | 125.38 |
| 10/11/21 | FSN E-Co Nykaa | 5375 | 96.15 | 46.56 |
| 15-03-21 | MTAR Tech | 596.41 | 88.22 | 277.39 |
| 19-07-21 | Clean Science | 1546 | 76.13 | 153.99 |
| 25-02-21 | Nureca | 100 | 66.66 | 339.5 |
| 23-07-21 | Zomato | 9375 | 65.59 | 17.7 |
| 13-12-21 | Tega Industries | 619.23 | 60.15 | 13.85 |
| 14-09-21 | AMI Organics | 571.96 | 53.2 | 61.31 |
| 30-03-21 | Nazara | 582.91 | 43.22 | 96.64 |
| 28-12-21 | Supriya Lifesciences | 700 | 42.46 | 68.7 |
| 28-06-21 | Dodla Dairy | 521 | 42.31 | 21.62 |
| 16-08-21 | Devyani Int | 1858 | 37.06 | 86.17 |
| 21-12-21 | C. E. Info Syst | 1039.61 | 35 | 30.99 |
| 5/7/21 | Krishna Inst. | 2146 | 32.95 | 66.98 |
| 9/8/21 | Rolex Rings | 732.27 | 29.62 | 35.85 |
| 5/3/21 | Heranba | 60 | 29.55 | 14.18 |
| 1/1/21 | Antony Waste | 300.53 | 29.29 | 1.76 |
| 26-02-21 | Railtel | 819.24 | 29.15 | 22.18 |
| 24-12-21 | Data Patterns | 601.2 | 29.03 | 27.26 |
| 26-11-21 | Tarsons Product | 1030.22 | 26.89 | -1.05 |
| 25-03-21 | Laxmi Organic | 600 | 26.62 | 233 |
| 24-06-21 | Sona BLW | 5550 | 24.69 | 115.29 |
| 24-06-21 | Shyam Metalics | 909 | 22.83 | 9.53 |
| 15-11-21 | PB Fintech | 6273.5 | 22.74 | -20.45 |
| 27-12-21 | HP Adhesives | 125.96 | 22.24 | 43.45 |
| 7/4/21 | Barbeque Nat | 453.6 | 18.08 | 174.98 |
| 14-09-21 | Vijaya Diagnostics | 1895.04 | 16.63 | -3.43 |
| 5/2/21 | Stove Kraft | 412.63 | 15.83 | 129.53 |
| 7/7/21 | India Pesticide | 800 | 13.33 | 1.1 |
| 19-03-21 | Easy Trip | 510 | 11.39 | 185.59 |
| 16-08-21 | Exxaro Tiles | 161.09 | 10.21 | 11.25 |
| 24-09-21 | Sansera Eng | 1282 | 10.04 | 0.76 |
| 31-12-21 | CMS Info System | 1100 | 9.91 | 22.22 |
| 14-12-21 | Anand Rathi | 660 | 6.09 | 7.77 |
| 6/9/21 | APTUS VALUE | 2790 | 5.96 | 1.27 |
| 6/8/21 | Glenmark Life | 1513 | 3.92 | -20.56 |
| 16-08-21 | Krsnaa Diagnostics | 1222 | 3.85 | -28.98 |
| 18-11-21 | Sapphire Foods | 2073 | 3.06 | 11.24 |
| 14-05-21 | PowerGrid InvIT | 7734.99 | 2.98 | 29.91 |
| 3/2/21 | Home First | 1153.72 | 1.81 | 50.95 |
| 10/12/21 | Star Health | 7318.15 | 0.76 | -11.38 |
Source: Moneycontrol; Jan 27, 2022
*Current gains as of 28 Jan 2022.
The losers:
While many stole the show, others had a disappointing debut.
• One97 Paytm:
One97 Paytm was by far the most hyped IPO of 2021 which fell flat by 15% on listing day and continues to trade at ~15% below the listing price. Interesting it was the largest IPO by issue size, there is no such thing as ‘too big to fail!’.
Additional Read – Should you invest in GSec directly through RBI?
• Kalyan Jewellers:
Another noteworthy debacle was that of Kalyan Jewellers, which was surrounded by controversy, debuted with a loss of 13% and trades ~24% below the issue price.
| Date | IPO Name | Issue Size (in Rs. Crs) | Listing Gains % | Current Gains % |
| 18-11-21 | One 97 Paytm | 18915.9 | -27.25 | -58 |
| 17-12-21 | Rategain Travel | 1354 | -19.88 | -11.46 |
| 20-12-21 | Shriram Prop | 600 | -15.76 | -14.24 |
| 26-03-21 | Kalyan Jeweller | 1175 | -13.45 | -23.91 |
| 16-08-21 | Windlas Biotech | 405.95 | -11.59 | -43.88 |
| 26-03-21 | Suryoday Small | 582.34 | -9.44 | -54.7 |
| 20-08-21 | CarTrade Tech | 2998 | -7.29 | -59.76 |
| 23-08-21 | Nuvoco Vistas | 5089.29 | -6.79 | -21.31 |
| 15-11-21 | SJS Enterprises | 816.57 | -5.93 | -26.68 |
| 12/11/21 | Fino Payments | 1209 | -5.5 | -32.02 |
| 24-03-21 | Anupam Rasayan | 760 | -5.24 | 75.69 |
| 19-04-21 | Macrotech Dev | 2500 | -4.7 | 165.43 |
| 29-01-21 | IRFC | 4633 | -4.42 | -11.15 |
| 25-03-21 | Craftsman | 823.7 | -3.83 | 38.74 |
| 11/10/21 | ABSL AMC | 2768 | -1.73 | -27.82 |
| 22-12-21 | Metro Brands | 1376.63 | -1.29 | 23.15 |
| 24-08-21 | CHEMPLAST SANMA | 3929.91 | -1.13 | -6.84 |
Does it make sense to invest in IPOs?
IPOs have become very tricky at this point, while many individuals apply for these, the allotment is not guaranteed. There are times when you face high disappointment, especially when these stocks for which you applied make a stellar gain on a listing day and continue to soar upwards.
There is an increasing trend of people looking at IPOs for making quick bucks, these individuals typically exit their position on the listing day which is called flipping. This is a good means of making sharp gains over a shorter horizon. However, it requires a trained eye to evaluate the IPOs and ascertain the probability of the stock performing exceptionally well upon listing.
IPOs can also be an excellent entry point for stocks with long term potential, there is a need to evaluate the stock based on the fundamentals, management credibility, plans, utilisation of funds etc.
Additional Read – Trailing V/S Rolling returns: Which one is a better indicator of fund performance?
In a nutshell:
It is evident that IPOs can provide supernormal returns or can be a disaster in your portfolio. Avail the help of experts at TATA capital Wealth who will guide you through the process of investing based on your risk appetite, asset allocation and investment horizon.
