2019 has been a very good year for Indian Stock Markets from both Domestic and Foreign Institutional investor’s point of view.
IPOs of IRCTC, Ujjivan Small Finance Bank, CSB Bank, Polycab, Metropolis, Indiamart were some of the shining stars of 2019 IPOs success story that have given handsome returns post listing.
7 IPOs were subscribed more than 10 times that includes IRCTC, Ujjivan SFB, CSB Bank, Affle India, Polycab, Indiamart, Neogen Chemicals.
Complete list of IPOs in 2019 can be checked here: IPO List 2019
IPOs in 2019 were consisted of two parts: Offer for Sale (OFS) and Fresh capital Issue
Companies from different sectors like Insurance, Asset Management, Small Finance Banks, Technology and healthcare having strong expansion plans as well as to comply with various regulations of SEBI, RBI and other regulatory bodies to reduce the Promoter holdings got listed in last couple of years.
The Offer of sale (OFS) was to get benefit of listing by promoters of companies along with diluting the promoter shareholding vis a vis get returns on their investments have also been seen in 2019 in a good proportion to IPOs.
However, Still fundraising through IPOs in 2019 fell 60% over previous year.
Numbers of IPOs were 16 in 2019 vs 24 IPOs in 2018.
However, if we compare the data with Listing, year 2019 was more successful for the IPOs than Year 2018.
Out of 16 IPOs in 2019, 7 IPOs gave a return of more than 10% based on their closing price on listing day. With IRCTC topping the chart giving investors 128% returns, CSB Bank 54% returns, Ujjivan SFB 51% returns, Indiamart 34%, Neogen Chemicals 23%, Polycab 22%, Affle India 17% and only two IPOs trading below issue price as on 28 Dec 2019. (Prince Pipe IPO yet to be Listed as on date of this Article).
The IPO pipeline for 2020, however looks strong. Twenty-one firms have received the market regulator’s approval to raise as much as Rs 18,700 Cr. via initial share sales. Another 13 are awaiting approval to raise a further Rs 18,000 Cr.