Upcoming IPO calendar for 2021
Like the year gone by, 2021 promises to be an eventful one for initial public offerings (IPOs. That is despite the coronavirus pandemic and the resulting lockdowns. When a company launches an IPO, it issues new stock for public investment. By participating in an IPO on the primary market, you can invest in promising companies' shares.
IPO report card for 2020
The countrywide lockdowns to prevent the spread of the coronavirus dampened economic activity last year. And yet, 2020 witnessed a series of blockbuster IPOs, thanks to strong investor interest and high liquidity in the system. Some 16 IPOs garnered investment worth a whopping Rs 30,000 crore. The average listing gains of 35.6% from recent IPOs were the best in a decade!
Returns from top IPOs in 2020
Five of the IPOs of 2020 witnessed subscription levels of 150 times and above. These were: Mrs Bector Foods Specialities, Mazagaon Dock Shipbuilders, Burger King India, Happiest Mind Technologies, and Chemcon Speciality Chemicals.
Who were the top performers of the year?
SBI Cards and Payments Services led the IPO pack, mopping up Rs 10,355 crore. Others included Gland Pharma with Rs 6,480 crore and CAMS with Rs 2,240 crore while UTI Asset Management Company took the fourth spot with Rs 2,160 crore.
Some of the issues doubled investors' wealth on the listing, indicating that the broader market sentiment was sound and investor appetite was healthy. Excess liquidity in the system and the listing of niche businesses may also have attracted strong investor interest. Reasonable valuations could have been another attraction for retail investors, helping ensure greater participation from them. Many investors turned to the IPO markets because other equity segments were challenging.
There is another angle to the recent flurry of IPOs. In some cases, existing shareholders wanted an exit. Such exits could have been a result of the disruptions caused by the pandemic.
Upcoming IPO calendar of 2021
Many companies expect better valuations this year, too, and the primary markets should remain in focus in 2021. The current market sentiment could prove beneficial for companies raising money via IPOs. So, keep an eye on the upcoming IPO calendar.
No less than 80 companies are expected to launch their IPOs this year. However, some of these might not materialise.
Last year, for example, some firms deferred listing themselves because of the pandemic. Some IPOs that were expected to hit in December 2020 were rescheduled for January and February 2021. Among these, Indian Railways Finance Corporation Ltd is scheduled for January, as is RailTel Limited. On the January list are Kalyan Jewellers, which hopes to raise Rs 1,700 crore, and ESAF Small Finance Bank Ltd, which is eyeing Rs 1,000 crore. Suryoday Small Finance Bank Ltd is preparing for a February 2021 listing. Nazara Technologies, which initially had its IPO scheduled last December, is also likely to go public soon.
Top IPO picks for 2021
This year's most eagerly anticipated IPO is that of India's Life Insurance Corporation, the biggest insurer. The government is yet to determine the dates. Then there is HDB Financial Services Ltd, which is eyeing Rs 9,000 crore in the listings market in 2021. Meanwhile, Bajaj Energy Limited hopes to mop up Rs 5,400 crore.
Other significant IPOs in the 2021 pipeline are of Samhi Hotels Limited (Rs 2,000 crore), Apeejay Surrendra Park Hotels Ltd (Rs 1,000 crore), National Commodity and Derivatives Exchange Ltd (Rs 1,700 crore), Powerica Limited (Rs 800 crore), and Telecommunications Consultants India Ltd (Rs 1,500 crore).
Gear up for IPO season 2021
Are you planning to tap into the IPO market this year? The process is simple if you have an account with a broker like ICICIdirect.com. You get to choose from the IPO listings online. Then apply digitally for your IPO investment via a hassle-free and transparent process. That leaves you free to track the buzz in the IPO segment as 2021 gets underway.