There is also a robust pipeline for IPOs in 2022, with momentum projected to continue into the new year.
The year 2021 was a record year for initial public offerings (IPOs), as corporations, particularly new-age technology startups, attempted to capitalize on a booming stock market. The optimistic stock market trend boosted individual investors’ enthusiasm in the initial share sales. Some of the bets performed admirably, but others failed to maintain momentum.
MTAR Technologies’ shares debuted in March 2021 with a bang, and the stock has since risen by more than 291 percent from its initial public offering price of $575. Paras Defence shares are up more than 285 percent from the issue price, followed by Nureca, which is up 247 percent, Laxmi Organics (230 percent), Easy Trip (175 percent), Clean Science (167 percent), MacroTech Developers (153 percent), Latent View Analytics (151 percent), Tatva Chintan (131 percent), and Nazara Tech (103 percent).
Meanwhile, the much-anticipated IPOs of Zomato and Nykaa, which were offered at exhilarating premiums, are trading more than 56% and 85% higher than their issue prices, respectively.
According to a Prime Database report, the primary issue market has reached an all-time high with 63 corporates raising 1,18,704 crore through main-board IPOs so far in 2021, nearly 4.5 times more than the 26,613 crores raised through 15 issues in 2020 and nearly double the previous best of 68,827 crores in 2017.
There is also a robust pipeline for IPOs in 2022, with momentum projected to continue into the new year. According to Prime Database, 35 firms have gained market regulator approval for their IPOs next year, intending to raise around 50,000 crores.
Another 33 firms, which are awaiting regulatory approval, intend to fund about 60,000 crores. The much-anticipated initial public offering (IPO) of LIC is also likely to take place next year.
