Of the 14 IPOs, six gave a return of over 10%. Topping the list was Harsha Engineers which ended the listing day with a stupendous return of 47%, followed by Syrma SGS (42%) and Dreamfolks (42%).
Out of the 14 IPOs in H1 FY23, 11 of them were trading above the issue price.
Retail interest
Out of the 14 IPOs, four of them received mega responses of more than 10 times (of which 1 IPO more than 50 times) while three IPOs were oversubscribed by more than 3 times.
The remaining seven IPOs were oversubscribed between 1 to 3 times. The new HNI segment (Rs 2- 10 lakh) saw an encouraging response with 5 IPOs receiving a response of more than 10 times.
In comparison to 2021-22, the response of retail investors also moderated, the database showed. The average number of applications from retail dropped to 7.57 lakh, in comparison to 15.56 lakh in 2021-22. The highest number of applications from retail was received by
(32.76 lakh) followed by Harsha Engineers (23.86 lakh) and Campus Activewear (17.27 lakh).
Fundraising drops by a third
With equity markets roiled by rate hikes and fears around global recession, fundraising through initial public offerings or IPOs dropped by 32% in the first half of the ongoing financial year 2022-23,
14 Indian corporates raised Rs 35,456 crore through mainboard IPOs in the first half (April to September) of 2022-23, according to the database on the primary capital market. “The amount raised is 32% lower than the Rs 51,979 crore raised through 25 IPOs in the corresponding period of 2021-22. Rs 20,557 crore or 58% of the amount was raised just by LIC,” Pranav Haldea, Managing Director, PRIME Database Group, said.
Overall, he said, public equity fundraising also dropped by 55% to Rs 41,919 crore from Rs 92,191 crore in the corresponding period of the previous year.
Besides the LIC IPO, which was the largest Indian IPO ever, other major IPOs included Delhivery (Rs 5,235 crore) and Rainbow Children (Rs 1,581 crore). “Only one out of the 14 IPOs (Delhivery) was from a new-age technology company pointing towards the slowdown in IPOs from this sector. The average deal size was a high Rs 2,533 crore,” he said.
The first half of the current financial year 2022-23 saw 41 companies filing their offer document with SEBI for approval, in comparison to 87 last year.
SME IPOs
Activity in the SME segment saw a huge increase in the first half of the current financial year with 62 SME IPOs collecting a total of Rs 1,078 crore in comparison to 30 IPOs in the same period in 2021-22 which collected Rs 346 crore. The largest SME IPO was of Rachana Infrastructure (Rs 72 crore).
H2 Outlook
The IPO pipeline continues to remain strong in the second half of the financial year as 71 companies have proposed to raise a huge Rs 1,05,000 crore are presently holding SEBI approval.
“IPO activity will be impacted by the volatility in the secondary market, mainly because of recessionary fears and rising interest rates. IPO is a once-in-a-lifetime event for a company and, as seen several times in the past, companies would prefer to let their approval lapse rather than launching their IPO in a volatile market,” Haldea said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
