Companies have raised more than Rs 50,000 crores in 2021 from the primary market – a positive indication of buoyant market conditions caused by high liquidity conditions in the global market. The enthusiasm in the primary market mirrored the performance of the secondary market, which remained robust despite COVID-19 scares. More than half of the IPOs launched last year have earned more than double-digits returns.
Last year the central market adopted a low-interest rate route to boost the economy dented by COVID-19, which increased liquidity in the market and helped push the market upward. As a result, many companies joined the bandwagon, and there was a deluge of IPO offers in 2020. Several of these IPOs were oversubscribed multiple times, often assisted by increasing retail participation in the primary market.
Among the companies which registered significant gains on debut were speciality chemicals and new technology companies. Several of these companies gathered momentum last year amid COVID conditions. Four companies have garnered more than 100 percent on debut, while one company closed at 100 percent. The four companies are Chemcon Speciality Chemicals which gained a maximum of 115 percent —followed by Happiest Minds Technologies recording 111.4 per cent, Route Mobile 102.3 per cent, and GR Infraprojects 103.1 per cent. The fifth company is Clean Science & Technologies, which scored 98.3 per cent on debut.
These companies enjoyed an advantage in the market when the pandemic continues to ravage the world.
The count climbs to eight when we consider the companies listed in 2020. Four more companies scored more than 100 percent gains since their debut in the market.
IRCTC (Indian Railway Catering and Tourism Corporation), which debuted in 2019, gained 101.3 per cent. Avenue Supermart, registered in 2017, clocked 102.1 per cent, Indraprastha Gas since 2003 gained 150 per cent, and TV Today Network joining the market in 2004 climbed 121.1 per cent.
The 8 IPOs Generated 100% Returns For Investors
|Company Name||Issue Price||Listing Date||Listing Price||Issue Size in Rs crore||Listing gain|
|Indraprastha Gas Ltd.||Rs 48.00||Dec 23, 2003||Rs 120.00||192.00||150|
|TV Today Network Ltd.||Rs 95.00||Jan 16,2004||Rs 210.00||137.75||121|
|Chemcon Speciality Chemicals Ltd.||Rs 340.00||Oct 1, 2020||Rs 730.95||318||115.0|
|Happiest Minds Technologies Ltd||Rs 166.00||Sep 17, 2020||Rs 351||386.11||111.4|
|GR Infraprojects Ltd.||Rs 837||July 19,2021||Rs 1700||963.3||103.1|
|Route Mobile Ltd||Rs 350||Sep 21, 2020||Rs 708||608.70||102.3|
|Avenue Supermart||Rs 299||March 21, 2017||Rs 604.40||1326.75||102.1|
|Indian Railway Catering and Tourism Corporation Ltd||Rs 320||Oct 14, 2019||Rs 644||645.121||101.3|
|HCL Technologies Ltd.||Rs 580||Jan 11,2020||Rs 1150||741.24||98.3|
|Clean Science and Technologies Ltd.||Rs 900||Jul 19, 2021||Rs 1784.40||1546.62||98.3|
More new technology companies will hit the market this year. Online food delivery start-up, Zomato’s offer had already opened and closed. Paytm, Life Insurance Corporation, National Stock Exchange, Flipkart, GoAir (now Go First), Policybazaar, and HDB Financial Services IPOs are on the queue.
Experts believe that as long as high liquidity conditions continue, it will encourage more large companies to explore the market for additional funding. Find out the complete list of upcoming IPOs in 2021 here.
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