The year 2022 is just a couple of days away from saying goodbye! It was a whole different roller coaster ride for Indian markets due to macroeconomic uncertainties which led to extreme volatility and IPOs as well felt the heat too. However, despite the shockwaves, the market has touched some impressive milestones as well. Like how Sensex and Nifty 50 skyrocketed to their lifetime highs in early December. Like how IPO markets witnessed some of the biggest public offers and listings. While talking about a behemoth IPO in the history of this market, LIC will cross investors’ minds, and not to overlook major fintech companies taking this route as well. Overall, the IPO market had a bittersweet performance. Even if the IPOs had strong fundamentals, the listing was lacklustre for some due to volatile markets. But nevertheless, some companies have emerged as star performers of 2022 so far in the IPO market.
According to Nirav Karkera, Head of Research, Fisdom, this year ushered in a myriad set of challenges to equity capital markets. The first half was characterised by challenges emerging from stressed geopolitics, fractured supply chains, reversal of easy monetary policies, and runaway global inflation.
Further, Karkera explained that with secondary markets running on dented sentiments, the first four months witnessed a low 18 IPOs. However, as global central banks and companies started gaining and disseminating clarity on the path ahead, secondary markets picked steam. Primary markets were quick to follow. 78% of total IPOs launched and listed as on November 2022 were launched in the past seven months alone. Of this, 56% were launched in the past three months alone as secondary markets shifted gears to a full-blown bull phase.
Also, Fisdom head of research revealed that as secondary markets rebounded and investor sentiments restored itself to a great degree, effects were observed during IPO listings as well. Over three-quarters of IPOs listed at a premium while ~18% of these are listed at a 50% premium to the higher end of the issue price band.
Data compiled by FYERS revealed that from January 1st to December 2nd, 34 IPOs were on offer in the main board (on BSE/NSE), with a total issuance size of ₹60,449.59 crore. Of these, 32 offerings commenced trading in the secondary market.
FYERS data showcased that the prominent listing was of the Life Insurance Corporation of India, with an issue size of
₹21,008 crore, followed by Delhivery Limited at ₹5,235 crore and Ruchi Soya Industries at ₹4,300 crore.
However, the star performers with the most subscriptions were — Harsha Engineers International, Electronics Mart India, DCX Systems, Dreamfolks Services, and Campus Activewear. Here’s how these IPOs have performed and emerged as the most subscribed in the year 2022.
1. Harsha Engineers International: This company’s IPO received the highest subscription in 2022. It closed on September 22 and was oversubscribed by 74.7 times. The qualified institutional buyers (QIBs) were the biggest bidders for the IPO as the portion for this category oversubscribed by 178.3 times, while non-institutional investors (NIIs) portion subscribed by 71.3 times and retail individual investors (RIIs) portion subscribed by 17.63 times. The IPO had an issue price of ₹330 apiece. The IPO’s size was ₹755 crore.
2. Electronics Mart India: It was the second-best IPO with an oversubscription of 71.9 times. Once again, QIBs emerged as the largest bidders for this IPO as well with the portion subscribing by 169.5 times, while NIIs and RIIs portion subscribed by 63.6 times and 19.73 times. The IPO size was ₹500 crore and closed on October 7, while the issue price stood at ₹59.
3. DCX Systems: The IPO size was ₹500 crore and closed on November 2, while the issue price was at ₹207 apiece. The IPO oversubscribed by 69.8 times, while the strongest bidding came from QIBs and RIIs as their portion subscribed by 84.32 times and 61.77 times respectively. NIIs portion subscribed by 44 times.
4. Dreamfolks Services: At the fourth spot, Dreamfolks IPO oversubscribed by 56.7 times with the QIBs portion subscribing by 70.53 times, RIIs by 43.66 times, and NIIs by 37.7 times. The IPO size was around ₹562.10 crore and closed on August 26 at an issue price of ₹326 apiece.
5. Campus Activewear: The IPO size was around ₹1,400.14 crore and closed on April 28, while its issue price was at ₹292 apiece. The IPO subscribed by 51.8 times driven by QIBs portion which subscribed by 152 times, while NIIs and RIIs portion subscribed by 22.3 times and 7.68 times respectively.
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