Best Performing IPOs in 2022: After a blockbuster performance in 2021, the primary market predominantly was seen to be sluggish. This came at the back of highly volatile Indian stock markets. However, the performance of debutants of 2022 has been mostly positive. The IPO (Initial Public Offer) markets raised over Rs 55,000 crore through 32-34 issuances in 2022.
Several analysts believe the subdued performance of the primary market in 2022 against last year was mainly due to the tightening of liquidity, uncertainty caused by global headwinds and sharp correction in recently listed companies that dampened the sentiment for overall IPOs. Manoj Dalmia Founder and Director-Proficient Equities Limited, said: “Due to tightened liquidity, uncertainties brought on by global headwinds, and a significant drop in newly listed companies—many of which were OFS issues—primary markets have been muted this year, which has lowered expectations for IPOs as a whole.”
In several cases, the prices have improved subsequently, and over 84 per cent of the IPOs listed this year are trading above the issue prices the analysts said, adding that the institutional buyers have largely been extremely selective in investing and have refrained from sticking their neck out to anchor their position in the IPOs.
Astha Jain, Senior Research Analyst, Hem Securities said that about three-fourth issues delivered a positive listing pop and roughly the same number of stocks are trading above the issue price post-listing. This is a decent performance.
“The gains have been skewed on the back of lower liquidity following the interest rate hikes, bifurcation of HNI category, lower financing for the HNIs have dented the market sentiments.”
Out of the 32 listings so far, 23 companies have had positive listings and 9 companies have had negative listings with an average listing day gain being 13.8 per cent, Amar Ambani, Group President & Head – Institutional Equities Head, YES Securities said in his comment.
On the SME front, as many as 104 companies have come to the primary market and raised Rs 18 billion and did see the best time in the recent past as a lot of stock enriched investor wealth, Ambani added.
IPOs Illuminating the D-Street
Electronics Mart and Dreamfolks Services were listed at a premium of more than 50 per cent, followed by Harsha Engineers, DCX Systems, and Hariom Pipes. LIC and Inox Green Energy Services were the biggest laggards on day one performance.
“Adani Wilmar has emerged as the best-performing IPO of 2022, followed by Hariom Pipe Industries. Though the number of IPOs halved to 31 in 2022 from 65 in 2021 but still they generated a healthy return of around 25 per cent on average basis. In 2022, Rs 58,346 crore have been mopped up by companies against Rs 1.31 lakh crore last year coupled with average issue size coming down to Rs 1,844 crore, from Rs 2,022 crore last year,” said Vikram Kasat- Head Advisory, Prabhudas Lilladher Pvt Ltd.
Adani Wilmar, Venus Pipes, Hariom Pipe and Veranda Learning have turned multibaggers, rising 106-177 per cent since their respective listing, followed by Patanjali Foods, Prudent Corporate and Vedant Fashions which gained 50 per cent or more.
LIC IPO – The Most Awaited
LIC was the biggest issue for the year 2022, which mopped about Rs 21,000 crore from the primary markets. Experts said that LIC was the biggest and much awaited issue of 2022 which disappointed the investors, turning them cautious over the primary markets.
Life Insurance Corporation of India is down by 27 per cent from the issue price and ranks second in the worst IPOs.
However, the worst performing issue, first issue of 2022, AGS Transact Technologies has dropped 60 per cent since its listing.
Delhivery, Inox Green Energy Services, Keystone Realtors, Dharmaj Crop Guard and Uniparts India are the other companies which are down 1-18% from their respective issue prices.
Primary Market Outlook for 2023
The coming year might bring some stiff challenges for the Indian primary markets, analysts fear. The robust listing pops are likely to become Covid-19 legends in 2023, experts said.
Dalmia said: ” Since markets can be volatile, investors should anticipate similar market conditions.”
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