From AGS Transact Technologies in mid-January to the likes of Radiant Cash and RBM Infracon, Indian investors had the opportunity of investing in many Initial Public Offerings (IPOs) during the year. This is how 2022 looks in numbers, as far as IPOs are concerned.
There were 91 IPOs during the year across mainboard and SME companies. Mainboard IPOs alone were 36 in number. This is significantly lower than the 65 mainboard IPOs on offer last year. By mid-December 25 IPOs had delivered positive returns. Four of these had doubled the investment made by the IPO investors. The average return from the IPOs so far in 2022 is 32%. These companies have raised a capital of over Rs 58,000 crores through IPOs this year, which is a decline from the Rs 1.31 lakh crores raised last year.
Some of the big performers in this year’s IPO market include the following companies –
Adani Wilmar – This kitchen essentials company from the Gautam Adani stable raised capital through IPO in January 2022. Its shares had an issue price of Rs 230, and the stock was listed on 8th February 2022. By April 2022, the stock had nearly quadrupled to touch an all-time high of Rs 878. The share price got corrected since then but has consistently remained above Rs 500. Thus, it has ensured a doubling of returns for all IPO investors.
Hariom Pipes – This iron and steel product maker was listed on the stock exchange on 13th April 2022. Against its IPO price of Rs 153, Hariom Pipes was listed at Rs 214, ending the listing day at a high of Rs 224. It had an all-time high of Rs 373.80 and is presently traded at Rs 343.
Venus Pipes & Tubes – A manufacturer and exporter of stainless steel pipes and tubes, Venus Pipe shares had an IPO price of Rs 326. However, it was listed at a premium on 24th May 2022, reaching a listing day high of Rs 351.75. Since then, it has doubled to a price of Rs 705 at the time of writing. Its all-time high is Rs 774.85.
Veranda Learning Solutions – It is an online learning platform that became a listed company on 11th April 2022. Its IPO price was Rs 137 but was traded at a listing day high of over Rs 160. It reached a high of Rs 380 in mid-September. Despite falling by 16% in the last month, it still trades at a respectable Rs 237 per share.
Prudent Corporate Advisory – The company provides digital and retail wealth management solutions across categories like stocks, mutual funds, insurance, gold etc. Prudent was listed on 20th May 2022. Its issue price was Rs 630 and despite opening at a premium, the share closed the listing day at a discounted price of Rs 562. Despite an uncertain couple of months, the stock has continued to rise since August, trading at Rs 910 at present. Its all-time high price so far was Rs 1035.80.
Vedant Fashions – Celebration wears fashion level Vedant is the owner of brands like Manyavar, Mohey, Mebaz etc. Listed early in the year on 16th February, Vedant a.k.a. Manyavar had an issue price of Rs 866 but touched a listing day high of Rs 993. Not for the first time, Manyavar broke the Rs 1000 ceiling on 5th July. But since then, it has never gone down that price level. Presently it is trading at Rs 1300.
Campus Activewear – Campus is India’s largest sports and leisure footwear maker. Their IPO was open between the 26th and 28th of April and got listed on the 9th of May 2022. Against an issue price of Rs 292, Campus opened at a premium price of Rs 355. It went on to touch Rs 417.70 on its listing day. The stock was circling the Rs 640 mark in October 2022. However, the last two months have been hard on the stock, as it gets traded at Rs 411 these days.
While these companies have proven to be the right investment for investors, the market can be harsh at times. Some of the new stocks found it out the hard way, but hopefully, these stocks will recover sooner rather than later.
LIC – India’s largest insurance company got listed on 17th May 2022, at a listing price of Rs 949. The share is yet to surpass its listing price, even after over seven months. It fell below Rs 800 in early June, never to return to date. It has circled in the Rs 600 to Rs 700 range, with an all-time low of Rs 588 in October. It is presently trading at Rs 691.
AGS Transact – AGS Transact Technologies is a provider of omnichannel payment solutions, including the largest deployment of POS terminals in fuel outlets. It got listed on 31st January 2022 at a discount price. Against an issue price of Rs 175, the company ended the listing day for Rs 161.30 at BSE. It reached a high of Rs 181 a few days after its listing but has continued to fall ever since. It fell below Rs 100 in early May and stayed at a two-digit price since then. It is presently trading at Rs 65.80.
Delhivery – Delhivery had a roaring entry into the stock market, with a premium listing on24th May 2022. Against its listing price of Rs 487, it ended the listing day at Rs 537.25. Delhivery stock remained steady till a couple of months ago, touching a high of Rs 708. In two days between the 19th and 21st of October, it slipped from Rs 559 to Rs 385! It has slipped further, trading at Rs 329, nearly 35% lower than its listing.
Inox Green Energy – Wind power operations and maintenance company, Inox Green Energy has been another disappointment in this year’s IPO market. Since its listing on 23rd November, the share has slipped from an issue price of Rs 65 to Rs 43.95. It ended the listing day at a discount price of Rs 59.10. After touching Rs 64 within a few days of its listing, Inox Green has seen a gradual decline. It reached a low of Rs 40.15 on 23rd December and is trading at 25.63% of its IPO price.
Investments in IPO are small milestones in the daily life of a retail equity investor. However, the attraction of listing gains, and the lure of being the early bird that catches the worm remains. With the draft prospectus and other resources as reference points, IPOs continue to remain a key interest in the stock market. While Radiant Cash and RBM Infracon await listing, companies like Anlon Technologies and Sah Polymers will undergo the IPO process in early 2023. Besides, there are widely anticipated names like Swiggy, Oyo Hotels, Go Air, Yatra Online etc. who are among the dozens of companies planning to bring out IPOs. Experts believe that 2023 may see nearly 100 IPOs across the SME and mainboard sections.
If you are an active IPO investor, 2023 may be a busy year for you. We hope you get your research and estimations right and have an excellent return on your IPO investments.