IPO performance in FY20
Financial Year 2020 was a mixed bag for investors who have invested in IPOs (initial public offerings). Only 14 IPOs entered the market in FY20. Of these 14 IPOs, 9 IPO’s have given positive returns while the remaining struggled to reach its issue price (except Rail Vikas Nigam). IRCTC tops the list of best IPO of the year with magnificent returns of 101%. The worst performing IPO of the year was SBI Card down 12.8% to the issue price on the listing date.
SBI Cards, Sterling and Wilson, Polycab India Metropolis Healthcare were the IPOs with an issue size of more than Rs 1000 crore. Spandana Sphoorty Financial, Ujjivan Small Finance Bank, Indian Railway Catering & Tourism Corpn (IRCTC) IPO Size was more than Rs. 500 crores. Whereas, Neogen Chemicals Ltd and Vishwaraj Sugar Industries Ltd had an IPO size of less than Rs 100 crore
|
Company Name |
IPO Issue Size (Rs Crore) |
|
SBI Cards and Payment Services Ltd. |
7,571.10 |
|
Sterling and Wilson Solar Ltd. |
1,729.84 |
|
Polycab India Ltd. |
1,349.94 |
|
Metropolis Healthcare Ltd. |
1,204.29 |
|
Spandana Sphoorty Financial Ltd. |
840.79 |
|
Ujjivan Small Finance Bank Ltd. |
750.00 |
|
Indian Railway Catering & Tourism Corpn. Ltd. |
645.12 |
|
Rail Vikas Nigam Ltd. |
481.57 |
|
Indiamart Intermesh Ltd. |
475.59 |
|
CSB Bank Ltd. |
409.68 |
|
Prince Pipes & Fittings Ltd. |
351.98 |
|
Affle (India) Ltd. |
278.48 |
|
Neogen Chemicals Ltd. |
93.07 |
|
Vishwaraj Sugar Industries Ltd. |
60.00 |
Source: Ace Equity
List of IPOs that either got a positive response from investors or were listed on the exchanges at a discounted price.
|
Company Name |
IPO Issue price |
IPO List price |
Close as on 31st March 2020 |
Gain/ Loss on listing date |
|
Indian Railway Catering & Tourism Corpn. Ltd. (IRCTC) |
320.00 |
644.00 |
982.40 |
101.3% |
|
Ujjivan Small Finance Bank Ltd. |
37.00 |
58.00 |
27.40 |
56.8% |
|
CSB Bank Ltd. |
195.00 |
275.00 |
118.50 |
41.0% |
|
Affle (India) Ltd. |
745.00 |
929.90 |
1,014.25 |
24.8% |
|
Indiamart Intermesh Ltd. |
973.00 |
1,180.00 |
1,935.90 |
21.3% |
|
Polycab India Ltd. |
538.00 |
633.00 |
741.90 |
17.7% |
|
Neogen Chemicals Ltd. |
215.00 |
251.00 |
351.10 |
16.7% |
|
Metropolis Healthcare Ltd. |
880.00 |
960.00 |
1,286.25 |
9.1% |
|
Vishwaraj Sugar Industries Ltd. |
60.00 |
61.20 |
65.00 |
2.0% |
|
Rail Vikas Nigam Ltd. |
19.00 |
19.00 |
12.90 |
0.0% |
|
Spandana Sphoorty Financial Ltd. |
856.00 |
824.00 |
587.15 |
-3.7% |
|
Prince Pipes & Fittings Ltd. |
178.00 |
160.00 |
102.25 |
-10.1% |
|
Sterling and Wilson Solar Ltd. |
780.00 |
700.00 |
76.90 |
-10.3% |
|
SBI Cards And Payment Services Ltd. |
755.00 |
658.00 |
618.40 |
-12.8% |
Source: Ace Equity
Going forward, FY21E is expected to be the toughest when it comes to raising money through IPOs. Global, as well as the Indian market is in downward trend due to the spread of Coronavirus epidemic. The shutdown of economic activity (lockdown) to curb the disease spread will affect the GDP numbers. The investors are preferring capital protection over risk. This will adversely affect the money inflow in the equity market. Therefore, only those companies that have very robust balance sheets will be preferred by investors.
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