What is CMP in the Stock Market?
In previous times, the stock market was a physical space that traders set up offices and desks at, and stocks, shares and bonds were traded in physic…
01 Feb, 2022
6 min read
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This year, the Indian stock market saw a remarkable bull run, with benchmark indices setting new all-time highs all year until October when it peaked. Following that, there was a pullback from earlier levels, particularly after the November discovery of the Omicron pandemic type.
When it comes to initial public offerings (IPOs), however, the market has been overwhelmingly supportive. This year's main market has been buzzing with a record number of IPOs, with 62 businesses having gone public thus far in the calendar year 2021. These businesses have raised a total of Rs 1.18 lakh crore. It has also been a clinical year, as we have seen some of the most important new-age enterprises receive funds through IPOs. Despite the fact that the secondary market has experienced a drop in recent months as a result of concerns about the Omicron version, a steady stream of IPOs has continued to flow in.
Due to improved macro parameters, higher liquidity, and a strong recovery in corporate earnings, experts said that the equity markets had a historic move, with benchmark indices touching new lifetime highs of 18,000 and 60,000 for the first time ever. They went on to say that, as a result of the optimistic sentiment reflected in the benchmark indices, the majority of initial public offerings (IPOs) did exceptionally well and became multi-baggers.
However, as the year progresses into 2022, experts are wary of concerns regarding the rise of Omicron and rising global inflation. "Given the prospect of future increases in inflation, most central banks are likely to raise interest rates to reduce liquidity. The market's momentum next year will be driven by the mounting uncertainty and concern surrounding Omicron. Global economies are already dealing with high prices and economic bottlenecks, and are still in recovery mode following the pandemic," experts added, adding that imposing more lockdowns and limitations would make it difficult to maintain the current rate of recovery.
Here are some of the top IPOs in 2021:
The online food delivery company Zomato's initial public offering (IPO) was one of the most anticipated among the new-age companies that went public this year. The company raised Rs 9,375 crore through a public offering, which was well-received by market participants, with the offering being subscribed 38.25 times.
Zomato's stock had a great start on bourses, surging about 53% versus the issue price on the first day, putting the company's market capitalization at over Rs 1 lakh crore.
FSN E-Commerce Ventures, which owns the online beauty e-commerce portal Nykaa, was another such new age startup that created a stir amongst investors upon its introduction. Led by Falguni Nayar - a former investment banker turned entrepreneur, the firm raised 5,352 crores through its IPO and the issue got subscribed 81.78 times.
The Nykaa scrip enjoyed a successful debut on the day of listing, trading at a premium of over 79% above its issue price on the stock exchanges.
When PB Fintech, the operator of online insurance aggregator Policybazaar and credit comparison portal Paisabazaar, went public, it was a hotly anticipated IPO. The company raised Rs 5,710 crore from an offer for sale (OFS) by existing shareholders for Rs 1,960 crore and a fresh issue of equity shares worth Rs 3,750 crore. It was well received, and the issue was subscribed 16.59 times.
The stock achieved a strong launch, debuting at a premium of 17.35% over its issue price last month. The stock, however, has gradually given up its gains after the initial weeks of post-listing rise.
One 97 Communications, the parent company of digital payments startup Paytm, was already the talk of the town when it first filed its draft papers with market regulator SEBI, making it one of the most well-known platforms in the country's payments arena.
It was not only the most anticipated IPO among new firms, but it also became the country's largest IPO, raising Rs 18,300 crore. The investors' response, however, was relatively modest given the massive scale of the offer. The IPO was completely subscribed by the third day and was finally 1.89 times oversubscribed. However, Paytm's journey in the stock market was a disaster, as the company's shares dropped nearly 27% from its issue price on the first day of trading.
MTAR Technologies, a Hyderabad-based precision engineering solutions company, was a favourite amongst the investors. Nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components, and a variety of other important components and assemblies are among the company's competencies.
MTAR Tech raised Rs 597 crore in their initial public offering, which was oversubscribed 200.79 times. The MTAR Tech shares were launched on the stock exchanges at a premium of over 85% above its issue price on the day of listing.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.
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