From FY20-22, 81 IPOs in India raised a total of Rs 1.52 lakh cr: KPMG report


A total of 84 initial public offerings (IPOs) were listed in India between FY20-22, i.e. during the global coronavirus pandemic, according to a recent report by global accounting firm KPMG. Of these, 81 IPOs have accrued Rs 1.52 lakh crore in 9 months of FY22 and FY21 and FY20, with a total subscription value of Rs 45.30 lakh crore.

The study – titled “India IPOs: IPOs During the Global Pandemic” – further notes that IPOs listed in FY21 fared better on the day of listing compared to those listed in FY20 and FY22. The report highlights that 4 of the 26 companies were listed at a premium above 100% in FY21, compared to 1 in FY20 and 3 in the first 9 months of FY22.

Graphic: Mohsin Sheikh
Graphic: Mohsin Sheikh
Graphic: Mohsin Sheikh
Graphic: Mohsin Sheikh

The 26 companies listed in FY21 returned an average of 36.2%. On the other hand, the 44 companies that were listed in the first nine months of FY22 averaged 26.2%, with 17 companies reporting more than 25% return.

44 listed IPOs in the 9 months of FY22 were 54.9x oversubscribed, lower than FY21 IPOs when oversubscribed was 74.8x. In fiscal 2020, by comparison, IPOs were oversubscribed by an average of 44.3x.

Less than half of IPOs listed in the first 9 months of FY22 saw a listing day premium of more than 20%, FY21 saw half of IPOs and the FY20 saw 43% of IPOs generating the same level of return.

“This highlights the stability of post-listing investor appetite over the three fiscal years, despite the pandemic phases in FY21 and the 9 months of FY22,” KPMG argued.

Graphic: Mohsin Sheikh
Graphic: Mohsin Sheikh

Over the three fiscal years, companies that took the public market route to raise funds were in sectors including chemicals and industrials, manufacturing and metals, TMT, financial services, healthcare, l food and drink, clothing and clothing, automotive and real estate. domain.

Sectors that posted double-digit listing gains in the 9 months of FY22 and full years in 2021 and 2020 were TMT (8), Chemicals and Industrials (7), Manufacturing (7), financial services (5), health care (5) and food and beverage (6).

Industries that saw negative listing gains during this period were financial services (11), IMM (2), apparel and apparel (2), chemicals (2), l automotive (2) and real estate (2).

Graphic: Mohsin Sheikh

23 of the 81 companies that were quoted below their offer price had a moderate average oversubscription figure of 8.3 times. Among these companies, 4 experienced an oversubscription of more than 20 times.

The study also noted that 48 companies that reported double-digit quote day returns had an average oversubscription of 91.7 times. Of these companies, 8 experienced single-digit oversubscription.

Also Read: SEBI Considers Enhanced Disclosures for Startup IPOs

Also read: IPO frenzy continued in April-November; 75 cos raised Rs 89,066 cr: Economic survey

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