IPOs raise Rs.27,000 crore in fiscal 2021-22

As per the latest data put out by Praxis, the Indian IPO market saw new issues collecting Rs.27,052 crore in the first four months. Considering that another Rs.70,000 crore of IPOs are lined for FY22, this could end up being a record year for IPO collections, even bettering 2017 by a margin. But, we have to wait for that to actually happen. For now, what we do have is the performance of the first four months of FY22.

Interestingly, the first four months collection is very close to the total amount of Rs.31,277 crore raised via IPOs in FY21. The largest fund raising in this fiscal was Zomato IPO which managed to raise Rs.9,375 crore through its IPO in July. This figure of Rs.27,052 crore does not include the Rs.7,735 crore that was raised via the Power Grid INVIT, which is the infrastructure investment trust sponsored by Power Grid.

One factor that appears to have worked for the IPOs is the commendable listing performance of a majority of the IPOs in FY21 and in the first 4 months of FY22. That has led to record subscription numbers with recent issues like Tatva Chintan Pharmachem and Rolex Rings getting oversubscribed to the tune of 180X and 130X respectively. The robust BSE IPO index has also fuelled the appetite of retail, HNI and QIB investors for IPO as an asset class by itself.

Also Check: List of Upcoming IPOs in August 2021

There is a much bigger story set to unfold this year. The Rs.70,000 crore to be raised via IPOs this fiscal includes a slew of digital leaders like Paytm, Nykaa, Policybazaar, MobiKwik, CarTrade etc. All IPOs listed in FY22 are trading above their issue price with premiums ranging from 14% to 110%. This is excluding the LIC IPO.