1 min read.Updated: 27 Dec 2021, 12:16 PM ISTLivemint
There is also a strong pipeline for IPOs in 2022 with the momentum expected to be carried into the new year as well
Listen to this article
2021 has been a record year for initial public offerings (IPOs) as companies, especially new-age technology startups, sought to take advantage of a soaring stock market. The bullish trend at the stock markets buoyed the retail investors' interests in the initial share sales. Some of the bets worked impressively, some maintained the momentum while some did not.
Shares of MTAR Technologies made a stellar debut in March 2021 and the stock has surged over 291% from its issue price of ₹575. Paras Defence shares have rallied over 285% from issue price, followed by Nureca which is up 247% from its issue price, Laxmi Organics (230%), Easy Trip (175%), Clean Science (167%), MacroTech Developers (153%), Latent View Analytics (151%), Tatva Chintan 131% whereas Nazara Tech is up 103% from its IPO issue price.
Meanwhile, the much anticipated IPOs of Zomato and Nykaa, that got listed at exciting premiums, are trading over 56% and 85% higher from their issue prices respectively.
The primary issue market has hit an all-time high with 63 corporates raising ₹1,18,704 crore through main-board IPOs so far in 2021, which is nearly 4.5 times more than the ₹26,613 crore raised through 15 issues in 2020 and almost double of the previous best of ₹68,827 crore in 2017, according to a report by Prime Database.
There is also a strong pipeline for IPOs in 2022 with the momentum expected to be carried into the new year as well. Currently, 35 companies have secured the market regulator’s approval for their IPOs next year, proposing to raise roughly ₹50,000 crore, according to Prime Database.
Another 33 companies, awaiting the regulator’s approval, plan to raise about ₹60,000 crore. The much-anticipated IPO of LIC is also expected to be launched next year.