The process where a private corporation offers its shares to the public in a new stock issuance is called an initial public offering (IPO). These IPOs are securities sold to the public in the primary market. A market that deals with the new securities issued for the first time is called a primary market. When the IPOs get listed on the stock exchange, the firm becomes a publicly-traded one. From then on, the company shares can be traded freely in the open market.
In the year 2021, a fair number of private corporations offered their shares as IPO. The detailed IPO reviews from the market came out too. These 2021 IPO reviews opened a very wide view of the company background and valuation, their capital structure, their financial performance along with SWOT analysis, peer comparison, etc.
Since January, 51 IPOs were listed on the main exchanges and 38 out of them are trading above their offer prices now. Among the many debutants, some are reaping high prices over their shares. 15 maiden IPO released including Paras Defence, Sona BLW, Zomato, MTAR Technologies, Laxmi Organic are selling their shares at double their issue price.
More than half of the 53 companies who successfully raised huge amounts through IPO release, did well on the listing day itself. Consider the case of Paras Defence IPO issue. They issued IPOs worth Rs. 140.6 crore.
The initial share sale’s price range was fixed at ₹165-175 apiece. The stock got listed at Rs. 469 per share on the NSE, around 170% premium from its IPO issue price. Zomato had its maiden IPO release on Jul 23, 2021. Their initial price was Rs. 76 and now they have a profit percentage above 100. Macrotech Developers Limited garnered a profit above 150% after their IPO release on April 19, 2021.
Shares of 24 companies sank after their listing day. Let’s take the example of Indigo Paints. On its opening day February 2, 2021, it was listed at a premium of 54%. Since then, the stock has declined 26%. India Pesticides, Shyam Metalics, are among the ones whose share price declined after the listing day.
More than 15 firms including Krsnaa Diagnostics, Suryoday Small Finance Bank, Windlas Biotech, CarTrade are currently trading more than 25% below their offer price. Titans like Aditya Birla Sun Life AMC Ltd too incurred a fall in the share price and is facing a loss of more than 15% now. Many investors lost their money on the IPOs of about 16 firms.
Here is a recap of the major IPOs issued in 2021.
|Listing Day Close Price
|1||Paras Defence And Space Technologies Limited||175||498.75||+309.51|
|3||MTAR Technologies Limited||575||1082.25||+272.28|
|4||Sigachi Industries Limited||163||603.75||+232.64|
|5||Laxmi Organic Industries Limited||130||164.6||+230.31|
|6||Barbeque Nation Hospitality Limited||500||590.4||+205.06|
|Listing Day Close Price
|1||Suryoday Small Finance Bank Ltd||305||276.2||-47.61|
|2||Windlas Biotech Limited||460||406.7||-34.89|
|3||CarTrade Tech Limited||1618||1500.1||-38.74|
|4||Krsnaa Diagnostics Limited||954||990.75||-27.35|
|5||One 97 Communications Limited||2150||1564.15||-18.46|
|6||Fino Payments Bank Limited||577||545.25||-17.98|
The year has not ended yet and still a month remaining, a lot could happen. Let’s keep a keen eye on the trade and the market.