With Indian markets on a record-breaking run for most part of the year, investors lapped up majority of the IPOs. The primary market remained buoyant even as the market corrected over 10% from record highs in October with central banks’ policies taking a hawkish turn and Omicron variant cases surging. December was one of the busiest months for the IPO market with 11 companies coming up with their IPOs.
An analysis of the listing performance of large IPOs shows investors have been indifferent to the size of the issues. Among the top 15 IPOs by issue size in 2021, only 6 are trading above their issue prices. Companies such as Zomato, PowerGrid Infrastructure Investment Trust, Sona BLW, and FSN E-Commerce Ventures (beauty e-commerce platform Nykaa’s parent) are up 21-155% above their respective issue prices.
The biggest IPO of Indian history, that of payments giant ‘s parent One97 Communications, tumbled on debut and is now trading nearly 38% below IPO price.
CarTrade Tech is by far the biggest laggard among the top IPOs. Hitting Dalal Street with a nearly ‘3,000-crore IPO in August, the stock has nearly halved in value from its IPO price of ‘1,618.
Sona BLW was not only among the biggest IPOs this year but is one of the top performers among all the companies that listed this year.
The highest gainer spot however is occupied by precision engineering solutions company MTAR Technologies, which has surged 297.4% from its IPO price. Laxmi Organic, Easy Trip and Clean Science were the other investor favourites, rising 170-230% from their respective IPO prices.
Rakesh Jhunjhunwala-backed Nazara Technologies has surged 109% from its IPO price of ‘1,101.
Companies that tanked after listing include Suryoday Small Finance Bank, Cartrade Tech, Windlas Bio, Shriram Properties, Aditya Birla Sun Life AMC, Kalyan Jewellers and Krsnaa Diagnostics which are down over 22-52% from their IPO prices.
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