Yearender 2022: Top 10 IPOs That Made Headlines In India

After a blockbuster performance in 2021, the primary market mostly portrayed a sluggish and sombre show in 2022

The listing of LIC in 2022 turned out to be the second-worst debut among 11 global companies that listed this year that managed to rake in at least $1 billion through first-time share sales.

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Year 2022 saw a predominantly lacklustre performance mostly due to volatility triggered by geopolitical tensions which soured the sentiments for the primary markets, with fund mobilisation through IPOs halving to nearly Rs 57,000 crore this year. After a blockbuster performance in 2021, the primary market mostly portrayed a sluggish and sombre show this year.

Some of the key IPOs and FPOs of this year which grabbed attention are in the following.

Life Insurance Corporation

Shares of state-run insurer, Life Insurance Corporation of India (LIC), made a weak debut on the stock exchanges in May after a record initial public offering (IPO) that priced at the top of the range and at the close of subscription the issue was oversubscribed nearly three times.

The listing of the 65-year-old behemoth turned out to be the second-worst debut among 11 global companies that listed this year that managed to rake in at least $1 billion through first-time share sales. The shares ended 7.8 per cent lower than the IPO price of Rs 949 after losing 9.4 per cent earlier. The insurer raised $2.7 billion, with buyers, including sovereign funds in Norway and Singapore, and millions of investors from the country.

After witnessing a good response from domestic investors in the initial share sale, the LIC IPO fetched Rs 20,557 crore to the government.

Ruchi Soya FPO

Shares of Patanjali Ayurved-promoted Ruchi Soya Industries listed at a 31 per cent premium at Rs 850 on the BSE compared to its follow-on public offer (FPO) price of Rs 650 in a firm Mumbai market in April. The shares were trading up 4 per cent compared to yesterday's closing price of Rs 818 as the company listed 6.61 crore new shares issued in a Rs 4,300-crore FPO.

According to market participants, numerous high-net-worth individuals (HNIs) who applied for the FPO dumped their shares after Sebi urged bankers of Baba Ramdev-led Patanjali group's Ruchi Soya on March 28 to provide investors in its FPO the option to withdraw their bids, while also warning them about the "distribution of unsolicited SMS" regarding the share sale.

Delhivery

Online logistics services platform Delhivery in May made a listless debut on the bourses, according to data from stock exchanges. On the BSE, the company’s shares got listed at Rs 493, which was 1.2 per cent higher against its issue price of Rs 487 per share. On the National Stock Exchange (NSE), the stock opened at Rs 495.20 apiece.

Delhivery’s stock hit a high of Rs 497.95 and a low of Rs 487 in the intra-day trade on the BSE and NSE on Tuesday. The stocks were trading at Rs 487.45, almost at par against its issue price at 10 am. A combined 10.1 lakh equity shares had transferred hands on the counter on the BSE and NSE.

According to news reports, the logistics platform had managed to garner full subscription despite challenging market conditions, with the issue getting subscribed 1.63 times. Qualified institutional buyers' portion attracted 2.66 times subscription, while the category for retail individual investors was subscribed 57 per cent and that for non-institutional investors 30 per cent.

Campus Activewear

Athleisure footwear company Campus Activewear’s shares made a decent debut on the exchanges on Monday, as the shares jumped 23 per cent and got listed at Rs 355 against the issue price of Rs 292.

The stock clocked a premium of 21.57 per cent, against the issue price on the BSE. Later during intraday, the shares further zoomed 26 per cent to Rs 368. At 1.15 pm, the stocks of Campus Activewear were trading at Rs 388, up 32 per cent on the BSE.

On NSE, Campus Activewear made its debut at Rs 360, a rise of 23.28 per cent over its issue price. The initial public offering of Campus Activewear was subscribed 51.75 times. The price range for the IPO of Campus Activewear was at Rs 278-292 per share.

During the IPO, the institutional investor portion was subscribed 152 times, wealthy investor portion was subscribed 22.25 times, while the retail investors' portion was subscribed 7.7 times.

Rainbow Children's Medicare

The initial public listing (IPO) of multi-speciality paediatric hospital chain Rainbow Children's Medicare opened for public subscription on April 27. The three-day IPO, which has a public issue of Rs 1,595 crore, will remain open till April 29.

According to the red herring prospectus (RHP) with Securities and Exchange Board of India (Sebi) showed on Thursday, the bidding for anchor investors was opened on April 26. The multi-specialty hospital management has fixed the price band of its offer at Rs 516 to Rs 542 per share.

However, according to market analysts the IPO size is expected to be more than Rs 2,000 crore. The public issue comprises a fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 2.4 crore equity shares by the selling shareholders.

Adani Wilmar

Edible oil major Adani Wilmar shares on Tuesday made a mute market debut but later recovered the lost ground to surge over 17 per cent against the issue price of Rs 230.

The stock made its debut at Rs 221, a discount of 3.91 per cent from the issue price on the BSE. However, later the shares recovered. Similarly, at the NSE, it declined 1.30 per cent to list at Rs 227, then bounced back and zoomed later in the day.

Adani Wilmar’s initial public offering (IPO) saw more than 17 times the demand for the shares on offer last month. The firm had set a price band of Rs 218-230 per share for the IPO, which opened for bidding on January 27. Branded products account for about 73 per cent of sales of edible oil, food and FMCG in FY20-21.

Bikaji Foods

Bikaji Foods International Ltd, manufacturer of snacks and sweets, has mobilised Rs 262 crore from anchor investors. The company's initial share-sale is open for public subscription from Thursday and will conclude on November 7. The company has decided to allocate 87.37 lakh equity shares to anchor investors at Rs 300 apiece, aggregating the transaction size to Rs 262.11 crore.

Eastspring Investments, BNP Paribas, Morgan Stanley, Government of Singapore, Nomura, BlackRock, Goldman Sachs, Tata Mutual Fund (MF), Aditya Birla Sun Life MF, ICICI Prudential MF, WhiteOak Capital, Kotak MF, HDFC MF, and Edelweiss MF are among the anchor investors.

The IPO will be a pure offer-for-sale (OFS) of around 2.94 crore equity shares by its promoters and existing shareholders. Both the promoters, Shiv Ratan Agarwal and Deepak Agarwal, are looking to offload up to 25 lakh company shares each. Other entities that will be selling their shares are -- India 2020 Maharaja, Ltd; Intensive Softshare Pvt Ltd; IIFL Special Opportunities Funds and Avendus Future Leaders Fund I. The issue, with a price band of Rs 285-300 a share, opened for public subscription on November 3 and concluded on November 7.

Harsha Engineers

The initial public offering (IPO) for Harsha Engineers International Ltd (HEIL) opened for public subscription in September. Since morning, the IPO was subscribed 15 per cent, with bids coming in for 24.56 lakh equity shares against an offer size of 1.68 crore shares.

The offer size of Harsha Engineers’ IPO was reduced to 1.68 crore equity shares from nearly 2.3 crore after the firm mopped up Rs 225.74 crore via anchor book the previous day.

Retail investors subscribed 24 per cent of their quota of shares and the employees bid for 27 per cent of the portion reserved for them. Shares worth Rs 2.5 crore have been set aside for the employees who will also get a discount of Rs 31 a share to the final price.

Non-institutional investors bought 11 per cent of their quota of shares, while qualified institutional buyers bought 630 shares against the 47.92 lakh reserved for them. The issue concluded on September 17, 2022.

DreamFolks Services

DreamFolks Services, airport service aggregator platform, made its market debut on Tuesday with a premium of 56 per cent against the issue price of Rs 326. According to reports, the listing was better than analysts’ expectations and a grey market premium of 30-40 per cent. The stock was listed at Rs 505, clocking a jump of 54.90 per cent from the issue price on the BSE. It further rallied 68.71 per cent to Rs 550. On the NSE, the company made its debut at Rs 508.70, a rise of 56 per cent.

DreamFolks Services’ Rs 562-crore Initial Public Offer (IPO) was subscribed 56.68 times during August 24-26. The IPO was entirely an Offer-For-Sale (OFS) of 1,72,42,368 equity shares. The price band for the offer was Rs 308-326 per share. The issue garnered bids for 53.74 crore equity shares against an offer size of 94.83 lakh shares.

Qualified institutional investors (QIIs) took the lead, buying shares 70.53 times the allotted quota. The portion set aside for non-institutional investors was subscribed 37.66 times and retail investors put in bids 43.66 times the shares reserved for them.

Sula Vineyards

Shares of Sula Vineyards on December 22 (Thursday) made a tepid market debut, listing with a premium of just over 1 per cent on the NSE, against the issue price of Rs 357. The stock listed at Rs 358, marginally higher by 0.27 per cent from the issue price on the BSE. It later hit a high of Rs 363.40 and low of Rs 339. At the NSE, it made its debut at Rs 361, climbing 1.12 per cent.