InvestorQ : How has been the IPO market action in the year 2020?
Niti Shenoi made post

How has been the IPO market action in the year 2020?

ishika Banerjee answered.
3 months ago

You can say that the 2020 was dominated by IPOs in a big way. If you look at it in terms of collections, it was not the best of years. India will end up with around Rs.50,000 crore in IPO collections including the IRFC issue in the last week. This is the second best in last 13 years since the financial crisis, behind 2017, when IPOs collected a sum of Rs.75,000 crore

But it is not just about the monies collected but also about the performance of these IPOs post listing. Interestingly, all the 16 IPOs listed till date in 2020 are quoting above their issue price. That is the kind of record, you only saw once in the last 15 years and that was in 2013. However, year 2013 had only 4 IPOs so 100% performance must have been a lot easier.

Let us look at the huge response to the IPOs in 2020, which underlined the huge appetite for such paper. For example, out of the 17 IPOs till date where subscriptions have closed, 5 IPOs got oversubscribed by more than 150 times. That is surely something commendable. The star of the year was Bectors Foods, which got 198X subscription.

But others did not lag too behind. For example, another four IPOs viz. Happiest Minds, Burger King, Chemcon Specialty and Mazagon Docks; all got subscribed by more than 150X. It was not just about subscription but also about the kind of returns that these IPOs have given after listing. It was the HNI, retail and QIB subscriptions jointly driving the IPOs.