2021 has been a good year for the Indian stock market and for IPOs in particular. There were 51 IPOs that took place during the year. 38 of these stocks are trading above their offer prices, of which 15 have more than doubled in value from their offer price.
Overall, the amount of money raised through IPOs so far in 2021 has been more than 1.08 lakh crores. Some companies that went public this year include Nykaa, Sona BLW, MTAR Technologies, Nazara Technologies, India Pesticides, Shyam Metalics, and more.
In our first article of our 4-part Market Round-up 2021 series, we discuss the IPO performance of some of the most prominent companies since their 2021 IPOs.
This company needs no introduction. The company started out as an app for exploring & posting reviews of restaurants and they have turned into one of the biggest food delivery services in India.
Zomato had one of the most successful IPOs in 2021. It was also the first Internet company IPO in India and grabbed much attention from investors and traders alike.
The final offer price of the company stood at Rs. 76, and it opened on its first trading day at Rs. 116. The stock closed at Rs. 125.30, which marked gains of 64.8% from its final offer price.
The company managed to raise Rs. 9.375 crores from its IPO.
PayTM is another internet company that we have on the list. The company started out as a digital payment service, and it has branched out into e-commerce, financial services as well. The company garnered a lot of interest and IPO analysis during its book building.
However, despite a lot of optimism surrounding the company, the stock plummeted by 27% on its listing day, making a tepid debut. PayTM failed to perform as per expectations post-IPO and has delivered returns of -26.4% since then.
Despite the negative returns, analysts are starting to be bullish on the company again, seeing the strong growth in the number of users of the company’s services.
Paras Defence and Space Technologies is a Mumbai-based company that specializes in engineering and testing products for the Indian defence sector. The company has been in operation since 2009.
Paras Defence performed admirably on the first day of trading itself. The company had an issue price of Rs. 175, but opened at a whopping Rs. 475. The stock hit the upper circuit of 5% on the first trading day providing stellar IPO returns.
Since its IPO, Paras Defence has delivered returns of 47.8% till date. The company’s IPO was oversubscribed by 304.26 times, which makes it the largest oversubscription since 2007.
Laxmi Organic is a chemical manufacturing company that has been in operation since 1989. The company is the largest manufacturer of ethyl acetate in the world.
Laxmi Organic also makes it to the list of companies that gave a glitzy recent IPO performance. It had an issue price of Rs. 130 and started trading with a premium of 20.15%. The company has gone from strength to strength since then and has delivered returns of 156.9%. The massive success of this stock can be attributed to high sales and stellar quarterly results.
Not every company managed to perform well in 2021, but there were many that did. Many of the IPOs in the year managed to exceed expectations, while some failed to impress.
We hope that you found our IPO performance analysis insightful and got lucky in stocks that made bumper listings, even as a trader!
And while we’re discussing IPOs, did you know – you don’t have to stay glued to your screen to monitor markets on listing day and so on!
PHI 1 allows you to automate trades by entering the desired criteria, which will execute trades when your criteria meets the right opportunities.
Get charts, screening, backtesting, simulations, execution and a lot more.
Try PHI 1 for free and unleash your trading superpowers!
Enjoyed this article? Watch this space for more in our 2021 Market Round-up series!