According to PrimeDatabase, main board IPOs were used by 37 Indian companies to raise Rs 52,116 crore in fiscal 2022-23. This is less than half of the all-time high of Rs 1.11 lakh raised by 53 IPOs in 2021-22. the most authoritative database on primary capital markets.
Prime Database Group managing director Pranav Haldia says that 25 of the 37 IPOs happened in just three months of the year (May, November, and December), which shows how volatile things are most of the year. not ideal for IPO activities.
In fact, the lowest amount in nine years was raised in the fourth quarter of 2022-23.
According to Haldia, LIC alone raised Rs 20,557 crore, or 39% of the money raised in 2022 and 2023. Without LIC, the IPO fundraising would have only been Rs 31,559 crore.
However, in terms of IPO fund raising, the amount raised in 2022 and 2023 is still the third largest.
The greatest Initial public offering in 2022-23, which was likewise the greatest Indian Initial public offering ever, was that of Disaster protection Corp of India. Delhivery (Rs 5,235 crore) and Global Health (Rs 2,206 crore) come in next. The average deal size was Rs 1,409 crore, a record high.
Delhi and TraxN were the only two IPOs from a new age technology company (NATC) out of 37, indicating a slowdown in the sector’s IPOs (Rs 41,733 crore raised in 2021-22 compared to 5 NATC IPOs).
The general public response was moderate. Out of 36 IPOs with data at this time, 11 received mega responses of more than 10 times, including two that were more than 50 times, and seven were oversubscribed more than three times. Between one and three times, the remaining 18 IPOs were oversubscribed.
When compared to 2021 and 2022, the response from retail investors was also muted. The retail industry received just 5.64 lakh applications on average, down from 13.32 lakh in 2021-22 and 12.73 lakh in 2020-21. According to the Prime Database, LIC received the most retail applications (32.76 lakh), followed by Harsha Engineers (23.86 lakh) and Campus Activewear (17.27 lakh).
How much offers applied for estimating by retail (Rs 41,671 crore) was 20% lower than the all out Initial public offering raising (contrasted with 17% higher in 2021-22) mirroring the low degree of excitement from retail during this period. depicts. ,
Haldia claims that the moderate listing performance contributed to the even slower response to the IPO. Based on the closing price on the listing date, the average listing yield decreased to 9.74 percent from 32.59 percent in 2021-22 and 35.68 percent in 2020-21.
16 of the 36 IPOs that have been listed thus far have yielded returns greater than 10%. With a return of 49%, DCX Systems stood head and shoulders above Harsha Engineers with 47% and Electronics Mart with 43%, respectively. 21 of the 36 initial public offerings (IPOs) are trading above the issue price (the closing price on March 24, 2023).