From FY20-22, 81 IPOs in India raised a total of Rs 1.52 lakh cr: KPMG report

A total 84 initial public offerings (IPOs) were listed in India between FY20-22, i.e., during the global coronavirus pandemic, as per a recent report from the global accounting firm, KPMG. Of these, 81 IPOs cumulatively raised Rs 1.52 lakh crore in 9 months of FY22 and FY21 and FY20, with a total subscription value of Rs 45.30 lakh crore.

The study -- called ‘IPOs in India: IPOs during the global pandemic’ --- further notes that those IPOs listed in FY21 fared better on the listing day compared to those listed in FY20 and FY22. The report highlights that 4 of the 26 companies were listed at a premium in excess of 100 per cent in FY21, compared to 1 in FY20 and 3 in the first 9 months of FY22.  

The 26 companies listed in FY21 returned an average of 36.2 per cent. On the other hand, the 44 companies that got listed in the first nine months of FY22 witnessed an average of 26.2 per cent, with 17 companies returning more than 25 per cent of return.  

44 IPOs listed in the 9 months of FY22 witnessed an over-subscription of 54.9 times, lower than that of IPOs in FY21 when over-subscription stood at 74.8 times. In FY20, in comparison, IPOs were over-subscribed by 44.3 times on an average.  

Less than half of the IPOs listed in the first 9 months of FY22 witnessed a listing day premium of over 20 per cent, FY21 had half of the IPOs and FY20 had 43 per cent of the IPOs generating the same level of returns.

“This highlights the stability in post-listing appetite of investors across the three financial years, despite the pandemic-ridden phases in FY21 and 9M FY22," KPMG argued.

In all the three financial years, companies that took the route of the public market to raise funds belonged to sectors such as chemicals and industrials, manufacturing and metals, TMT, financial services, healthcare, food and beverages, clothing and apparel, automotive and real estate.

Sectors that reported double-digit listing gains in 9 months of FY22, and the full financial years in 2021 and 2020 were TMT (8), chemicals and industries (7), manufacturing (7), financial services (5), healthcare (5) and food and beverages (6).

Industries that reported negative listing gains during this period are financial services (11), IMM (2), clothing and apparel (2), chemicals (2), automotive (2) and real estate (2).  

23 out of 81 companies that got listed below their offer price had a muted average over-subscription figure of 8.3 times. Of these companies, 4 witnessed over-subscription of more than 20 times.  

The study also noted that 48 companies which reported more than double-digit returns on the listing day witnessed an average over-subscription of 91.7 times. Of these companies, 8 witnessed single-digit over-subscription.  

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