2021 proves to be the best year for initial offerings and listings

The year 2021 so far has been the best year for the initial public offerings (IPOs) and listings. Out of the 51 IPOs listed on the main exchanges since January, 38 are trading above their offer prices.

Fifteen of these debutants, including Zomato, Nazara Technologies, Sona BLW, MTAR Technologies, Paras Defense, and Laxmi Organic, among others, have more than doubled from their issue price.

So far in 2021, 53 companies have raised a record Rs 1.08 lakh crore through initial public offerings. More than half of these IPOs did well only on the listing day, while their returns post listing day are negative or flat.

Shares of 24 companies sank after the listing day. For instance, Indigo Paints was listed at a premium of 54% on February 2, 2021. Since then, the stock has declined 26%. Heranba Industries, India Pesticides, Shyam Metalics, among others too have declined after the listing day.

Investors have lost money in 16 IPOs. Firms such as Suryoday Small Finance Bank, Windlas Biotech, Krsnaa Diagnostics, and two startups such as Paytm and CarTrade, are currently trading more than 25% below their offer price.