2020 had been a good year for the companies that launched IPO during it. Despite a slow start in the pandemic-hit year, the IPO market picked up really well. Around 16 companies that made maiden offers ended up raising more than Rs 31,000 crores from the market. Some companies like IT startup Happiest Minds, defence stock Mazagon Dock, speciality chemical company Chemcon received 149 times subscription. Mrs Bector one of the last IPOs to make a debut in 2020 signed off the year with 198 times subscription. Keeping that in mind, there are so much to look forward to 2021, and already there is a long list of top companies waiting to make market debut during the year.
A Lookback At 2020 IPO Performance
Here is a list of companies that received the highest subscription in 2020.
|Mrs Bectors Food Specialities||198.02|
|Mazagon Dock Shipbuilders||157.41|
|Burger King India IPO||156.55|
|Happiest Minds IPO||150.98|
|Chemcon Specialty Chemicals||149.3|
|Computer Age Management Services||49.66|
|SBI Cards and Payment Services||25.54|
|Antony Waste Holding cells||15.04|
Despite four months of long dry-spell due to COVID-19 outbreak in India and the lockdown that followed, several IPOs gave a stellar performance in 2020. There was also a rise in the number of new investors in the market. Between April and September 2020, 63 lakh new Demat accounts were opened, registering a growth of around 130 percent. The number was 27.4 lakhs during the same period in 2019. At the end of October, NSDL and CDSL had 206 lakhs and 270 lakhs active Demat account, bringing the number to 476 lakhs, which was significantly higher than 2019 number.
Higher retail subscription remained one of the major causes behind the strong performance of some of these IPOs.
Upcoming IPO 2021
IPO performance of 2020 presents an excellent precursor for 2021. Although we don’t know yet which companies would list in 2021, it is expected that around 30 companies will make market debut during FY 2021, targeting to raise more than Rs 30,000 crores.
With Indian investors recognising the potential of tech startups, 2021 is ready to become the year of tech startups’ market debut. The list contains names like e-commerce unicorns like Flipkart, digital grocery store Grofers, online insurance marketplace Policybazaar, logistic partner Delivery, beauty and fashion brand Nykaa, and food delivery giant Zomato.
Here Is A List Of Upcoming IPOs Of 2021
LIC: The most anticipated IPO debut of LIC is likely to happen in 2021. When launched, LIC IPO will become the largest IPO to ever float in the Indian IPO market with an offer size north of Rs 13 lakh crores.
Zomato: The food delivery leader has Ant Financial and Tiger Global as its investors. After seeing its revenue double during 2020, Zomato is planning to float IPO offer during the first half of 2021.
Grofers: Grofers had seen its business spike during the months of lockdown. The Softbank-backed online grocery store is also eyeing possibilities of launching initial public offering.
Flipkart: Indian e-commerce giant, Flipkart may make a market debut in either Singapore or USA stock exchange. Speculations spiked after Walmart CEO, Doug McMillion recently reiterated the company’s plan to list in the bourses.
Nykaa: According to reports, Nykaa has plans to launch a USD 3 billion IPO in the next two years. The company is currently evaluating the prospects of domestic and overseas listing.
Ola: Company CEO, Bhavish Aggarwal has confirmed the rumours company’s plans to launch IPO in the next two years.
Apart from the names mentioned above, we will see several other firms to make a maiden appearance in the market.
The Indian IPO market is currently an exciting segment for investors to venture. Strong IPO performance despite COVID has helped to elevate investor’s confidence in the Indian IPO segment.
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