How many IPOs did you get in 2023? Sorry if we laid hands on your sore spot!
Congratulations to those who did get IPOs in 2023! All the best to everyone for IPOs in 2024. We know you have some questions about IPOs. How was the previous year for the IPOs, and will it be the same this year? In this article, we will try to answer all these questions.
IPO performance in 2023
Our focus in this article will be on Mainline IPOs only. We are not analyzing SME IPOs here.
In 2023, a total of 60 companies came with their IPOs and raised nearly Rs 41,095 crore. In 2022, the number of IPOs that came was 40, but the amount raised was much higher at Rs 59,302 crore. You may know that 2021 was a record-breaking year, with 63 companies raising nearly Rs 1.19 lakh crore. Let us look at the biggest, most popular (highest subscription), and bumper-listed IPOs of 2023.
Biggest IPOs
The main reason the total money raised in 2023 is less than in 2022, even though the count is higher, is because there were no giant IPOs. In 2023, the biggest IPO was Mankind Pharma, which raised Rs 4326.40 crore, and the second largest was Nexus Select Trust REIT, with an issue size of Rs 3200.
In 2022, we had LIC with an issue size of Rs 21,000 crore, and in 2021, we had Paytm and Zomato raising Rs 18300 crore and Rs 9375 crore, respectively. In this respect, 2023 was a disappointing year.
Smaller issue sizes meant that there was fierce competition among investors to get the allotment. Among the 60 IPOs, which ones saw the maximum subscription by retail investors and overall? We will find this in the next section.
The popular IPOs
Some IPOs saw crazy interest from all investor categories in 2023. Only one IPO did not get subscribed completely (100%), and it was also the first IPO of 2023 (it came near the new year and was listed on January 4th). Perhaps investors forgot to apply because they were in the party mood!
Out of the 60 IPOs listed in 2023, 4 IPOs were subscribed over 100 times. Insane, right? One of the reasons could be because all those had issue sizes of less than Rs 600 crore.
Among the larger IPOs (1500 crore or more), the highest subscription was seen by Tata Technologies, which subscribed 69.4 times. You may know that other than the retail category, IPOs have a percentage allocation for QIB and HNI investors. Netweb Technologies and Happy Forging saw the maximum QIB interest, with 228.9X and 220.5X subscriptions, respectively.
The Star Performers
Do all IPOs give you listing gains? No. Out of the 60 IPOs in 2023, 8 opened at a discount or below their issue price. The positive here is that none opened with a heavy discount - Udayshivakumar Infra Ltd. opened at a maximum discount of 10%.
No points for guessing. Tata Technologies IPO is the star performer, with a listing gain of 162.6%, followed by ideaForge Technology with a listing gain of 92.7%, Utkarsh Small Finance Bank with 92%, and Motisons Jewellers with an 88.3% listing gain.
Are you sad that you missed the earnings from IPOs because you did not have a Demat account or IPOs were not allotted? Don't worry, and gear up for 2024 - give a restart.
As per market experts, it is expected that companies will raise over Rs 1 lakh crore in 2024. More than double what they raised in 2023.
Looking at the available data, 28 companies have already received approval from the Securities and Exchange Board of India (SEBI), and they are expected to raise over Rs 30,000 crore.
On the other hand, 36 companies have submitted their Draft Red Herring Prospectuses (DRHP) with SEBI. If all these go public this year, they will collectively raise Rs 50,000 crore more. In 2024, it is expected that we will see some big IPOs and the average issue size will be larger than in 2023.
The biggest and most-awaited IPOs of 2024 are:
- Ola-Electric: It plans to raise Rs 8300 crore. They submitted DRHP in the last week of December.
- Swiggy: The Softbank-backed company is preparing for its IPO, and the IPO is expected in the second half of the year.
- Oravel Stays (Oyo): It was expected to come with its IPO last year, but the process got delayed. However, they may go public in 2024.
- Brainbees Solutions: The parent company of FirstCry is also planning to enter the primary market with an issue size of more than Rs 4,000 crore.
Before you go
Before ending this article, we would like to tell you that investing in IPOs to make money through listing gains can be enticing, but it comes with its own set of risks. We request that you understand the risk and approach IPO investing with a well-informed and strategic mindset.
Disclaimer:
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This blog is for education purposes only and should not be considered as advice, consult your financial advisor before investing.
