InvestorQ : What were the key learnings from IPO markets in 2020-21 and how do you see the IPO as an investing idea in the next financial year?
diksha shah made post

What were the key learnings from IPO markets in 2020-21 and how do you see the IPO as an investing idea in the next financial year?

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Arusha Ray answered.
8 months ago
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Here are some key takeaways from the IPO story of FY21.

· First and foremost, futuristic stories prevailed in the market. This includes sectors like digital, telecom, new age technologies etc.

· There were some niche stories where the China factor had an impact. Rossari and Heranba are bulk drugs / chemicals companies and promised to get India over the near domination that China has enjoyed in specialty chemicals

· Consumption stories like QSR were embodied by Burger King which listed and still trades at over 120% of the issue price.

· Not to forget that even unglamorous stocks like Likhitha, Mazagon and Equitas SFB gained purely because they were priced very reasonably and at attractive valuations.

The 25 IPOs in FY21 started with a market cap of Rs.58,800 crore, which has now grown to Rs.83,100 crore; a return of 41.3% in a little over 6 months. Issuers are realizing the importance of pricing their IPOs right and that is good for markets overall.

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