Year Ender 2021: Era Of IPOs As Over 50 Firms Go Public

Guwahati: This year has been great for Initial Public Offering (IPO) as the markets witnessed record IPOs hitting the market. Investors too were excited about the IPO and also got a listing gain of up to 270 per cent this year.

However, the IPOs of some companies also drowned investors' money and this also included the issues of giant companies.

According to the IPO performance tracker given on the BSE website, 80 companies have been listed in the stock market so far this year, in which 59 have given profits to investors.

The year-on-year IPO activity in India increased 156 per cent in numbers to 110 deals in 2021. The year 2021 also witnessed public issues by internet companies such as Paytm, Zomato, Nykaa, Policybazaar, among others.

Besides IPOs, Tata Sons acquiring Air India, a bill seeking to ban all private cryptocurrencies were among the top business news that created a buzz in 2021.\

Zomato:

On July 23rd, Zomato made a stellar debut on bourses. The IPO of the Zomato during the three-day period received bids for 27,51,27,77,370 shares against an issue size of 71,92,33,522 shares. Notably, the price band was set at Rs 72-76 apiece and the IPO had opened on July 14 and closed on July 16. Shares of the company were listed at Rs 116 apiece, a premium of 53 per cent to the IPO price of Rs 76.

Interestingly, the company's market cap currently stands at Rs 99,790 crore. Incorporated in 2008, Zomato is present in 525 cities in India, with 3,89,932 active restaurant listings along with a presence in 23 countries outside India.

Nykaa

FSN Ecommerce Ventures, the parent company of online beauty product seller Nykaa, had fixed its issue price at Rs 1085-1125 per share. Accordingly, the valuation of the company is $ 7.11 billion i.e. Rs 53,200 crore. The company's issue was opened on October 28 and closed on November 1.

Nykaa planned to raise Rs 5352 crore from its issue. In this, a fresh issue of Rs 630 crore and shares worth Rs 4772 crore was sold in Offer for Sale (OFS). Presently, the promoter holds 45.99 percent stake. With a market capitalization of $14 billion, Nykaa has comfortably broken into the club of India's top 100 most valuable companies.

According to the Bloomberg Billionaires Index, Nykaa founder and CEO Falguni Nayar became India's richest self-made woman billionaire. The company's market cap currently stands at Rs 95,780 crore.

Falguni Nayar and her family still own a 56.56% stake after the company's listing.

PayTM

One97 – owned digital payments platform Paytm which opened its IPO, had created history as the IPO was oversubscribed 1.89 times on the last day.

The company had received bids for a total of 9.14 crore shares against invited bids for 4.83 crore shares. The shares which were set aside for small investors saw 1.66 times subscription in the non-institutional investor category, while on the other hand in the eligible institutional investor category, it saw 2.79 times subscription.

Since the Paytm IPO was of Rs 18,3000 crore due to which it had become the largest IPO in the history of the country. The price band fixed for this IPO was Rs 2,080 to Rs 2,150 per share.

According to data from exchanges, on the last day, the subscription witnessed the IPO was oversubscribed 2.79 times by QIB, while it got 1.66 times subscription from retail investors. Notably, before Paytm, it was coal India that had seen the highest subscription on the final day of bidding.

On day 1, the company's IPO had secured the highest retail percentage subscription for IPOs with retail sizes in excess of Rs 1,000 crore over the last decade, which was subsequently oversubscribed early on Day 2.

The company had raised Rs 8,235 crore from anchor investors, ahead of the IPO. In this round, 122 domestic and foreign funds bid for the shares of Paytm. The company's market cap currently stands at Rs 87,000 crore.

Policybazaar (PB Fintech)

The shares of Policybazaar's IPO was listed on November 15. The company's issue price band was fixed at Rs 940-980. The issue size is 6,07,30,265 shares, with a face value of Rs 2 each.

Policybazaar was preparing to raise Rs 5709.72 crore from this IPO. It had a fresh issue of Rs 3750 crore, whereas the shares of 1959.72 crores will be sold in Offer for Sale (OFS).

In the offer for sale, SVF Python II (Cayman) sold shares worth Rs 1875 crore. On the other hand, Yashish Dahiya sold sell shares worth Rs 30 crore. Alok Bansal sold sell shares worth Rs 12.75 crore and Shikha Dahiya for Rs 12.50 crore.

The company had set a valuation target between $5.5 billion to 6 billion. Investors like SoftBank, Temasek, InfoEdge, Tiger Global and Premji Invest had invested in the company.

The company's market cap currently stands at Rs 44,000 crore.

Siagchi Industries

Chemical manufacturing company Sigachi Industries had made a tremendous debut in the stock market as its share listed on the Bombay Stock Exchange (BSE) at Rs 575.

Sigachi Industries had fixed the share price for the IPO at Rs 163, while it is listed at Rs 575 which was an increase of about 253 per cent or Rs 412 from the issue price. The stock reached Rs 604 on Monday after listing at Rs 575 which was an increase of 5 per cent.

The issue also got a great response from investors and was subscribed more than 100 times.

The company had fixed an upper price band of Rs 163 for the issue and the size of the IPO was 53.86 lakh equity shares, while bids were received for 54.88 crore shares.

Sigachi Industries manufactures microcrystalline cellulose (MCC), which is a polymer that is used in the farm industry. The company has plants in Hyderabad and Gujarat, where 50 types of MCCs are made. Sigachi's IPO was open for subscription from November 1 to November 3.

Tata took over Air India

Meanwhile, the government of India after repeated attempts sold its flagship national carrier Air India to Tata group of companies. For the Tatas, the original owners of Air India, bringing back the airline to its fold is worth the wait. Tatas successfully won the bid to acquire debt-laden state-run Air India offering Rs 18,000 crore for acquiring 100 per cent shareholding.

Bill on Cryptocurrency

In a bid to frame rules for cryptocurrencies for prohibiting private crypto coin, the Union government had announced to introduce a bill in the winter session of the parliament. As per the Lok Sabha bulletin, the said bill was listed among 26 items of legislation for consideration.

''To create a facilitative framework for the creation of the official digital currency will be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,'' the bulletin said with regard to the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.

Notably, a week ago, Prime Minister Narendra Modi had said that all democratic countries need to work together on cryptocurrency and ensure that it does not end up in the wrong hands.

Giving an example of the virtual currency, he had said, "Take cryptocurrency or Bitcoin for example. It is important that all nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth.''

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