IPOs in 2022 of ‘better quality’, earn better money for investors

Mumbai: Initial public offerings (IPOs) in 2022 have helped investors make better money than the previous two years, with 17 of the 22 listings currently trading above their issue price amid sharp swings in the stock market. Some IPOs such as , Veranda Learning, Venus Pipes, and Campus Activewear, have more than doubled over the issue price, while another dozen have returned between 15% and 80% over the issue price.

Adani Wilmar, which raised ₹3,600 crore through an IPO in February at an issue price of ₹230 per share, is currently trading at ₹672, 192% above the issue price. IPOs of

and Venus Pipes & Tubes have given a return of more than 130% since listing. Similarly, companies such as Aether Industries, Electronics Mart, , , and Campus Activewear are trading 50% to 90% above issue price.

Bankers said the quality of the issues has been better this year compared to the previous two years.

“So far in 2022, only a few companies with comfortable valuations entered the primary market while the rest have deferred their IPO plans due to market conditions despite getting Sebi approvals,” said Dharmesh Mehta, MD, DAM Capital. “Most IPOs have given a good return to the investors supported by the bounce back in the secondary market.”

India’s largest IPO by state-owned Life Insurance Corporation in May disappointed investors. The stock is currently trading 38% below the IPO price.

raised a record ₹20,557 crore via the offer. Logistics unicorn Delhivery, which raised ₹5,235 crore in May, is trading 27% below its IPO price.

The Nifty has gained 4% so far this year. About 22 companies have raised ₹44,085 crore in 2022 compared to ₹1.19 lakh crore raised by 63 companies in 2021. In 2020, 15 companies raised ₹26,613 crore.

Of the 66 IPOs of 2021, 28 are currently trading below their offer price. Companies such as One 97 Communications, , , , , , and are trading 50-70% below their offer price.