The year 2021 proved to be the most successful in terms of IPO funding.

More than Rs 1 lakh crore was raised in the calendar year as over 60 companies sought to list on stock exchanges; start-up IPOs were the year’s highlight.

In terms of cumulative fundraising via initial public offerings, 2021 proved to be the best-ever year to date for the primary markets (IPOs). More than Rs 1 lakh crore was raised in a single calendar year for the first time in history.

According to data from Prime Database, the main market tracker, and the National Stock Exchange (NSE), 63 firms filed for initial public offerings (IPOs) in 2021, raising over Rs 1.19 lakh crore.

This much outstrips the previous high of Rs 67,147 crore set in 2017. Furthermore, just 36 issues were issued in 2017, corroborating the fact that the current calendar year has been a busy one as a rising number of private enterprises sought to be listed in public markets.

Interestingly, December has traditionally been seen as a weak period in terms of fundraising – worldwide investors are typically on vacation – but 2021 proved to be an exception, with 11 firms launching their IPOs in the final month of the year, earning about Rs 9,600 crore.

Meanwhile, nine IPOs were issued in each of the months of November and March. Easy Trip Planners, Clean Science and Technology, Microtech Developers, Latent View Analytics, Stove Kraft, Sigachi Industries, Sona BLW Precision Forgings, Barbeque-Nation Hospitality, Tatva Chintan Pharma Chem, and Nazara Technologies are among the companies that have given their investors a return of more than 100%.

However, not every IPO investor has been fortunate this year, as 19 issues are now trading below their issue prices. The closing prices on the NSE on December 27 have been used.

Suryoday Small Finance Bank has been the worst performer of the year, with a share price of Rs 145.90, a 52.16 percent drop from its issue price of Rs 305. It is followed by CarTrade Tech, whose share price has halved since its initial public offering.

THE HIGHLIGHTS WERE START-UPS.

The introduction of online and digital majors into the public market was clearly the year’s highlight.

Companies such as Zomato, Nykaa, Paytm, and PolicyBazaar entered the stock market in 2021 after commanding enormous values in the private fundraising area.

In terms of returns, Nykaa proved to be the best choice for investors, as the stock has increased by 88% since its initial public offering. Even Zomato is currently up about 75% from its initial price. While Policybazaar is nearly flat, Paytm has been the pack’s weakest performer.

In addition, Paytm shares fell more than 27% on the day of their debut, making them the worst debutant in many years if all IPOs with a size of more than Rs 1,000 crore are considered.

However, there are more start-up IPOs in the works as digital titans such as Oyo, PharmEasy, Delhivery, MobiKwik, and Ixigo preparing to go public.

POWERFUL IPO PIPELINE

According to Prime Database, more than 35 companies have already received the final go-ahead from the Securities and Exchange Board of India (SEBI) and will be able to launch their initial public offerings (IPOs) in the coming months. A SEBI approval is good for one year from the date of approval.

Companies such as Adani Wilmar, AGS Transact Technologies, ESAF Small Finance Bank, Go Airlines (India), Medi Assist Healthcare Services, Northern Arc Capital, One Mobikwik Systems, Puranik Builders, Ruchi Soya Industries, and Tracxn Technologies, among others, are expected to launch their respective public offerings in the coming months.