IPO fund raising hits all-time high at Rs 1.18 lakh crore

NEW DELHI: Sixty three Indian corporates raised an all-time high Rs 1.18 lakh crore through main board IPOs in calendar 2021.

This was nearly 4.5 times Rs 26,613 crore raised through 15 IPOs in 2020 and almost double of the previous best year 2017 in which Rs 68,827 crore was raised.

IPOs from new age loss-making technology start-ups, strong retail participation and huge listing gains were the key highlights, according to Pranav Haldea, Managing Director, Prime Database Group.

Overall public equity fundraising crossed the Rs 2 lakh crore mark to reach Rs 2.02 lakh crore in calendar 2021 which was higher than the previous highest amount of Rs 1.76 lakh crore in the preceding year. The overall response from the public was very good. Of the 59 IPOs for which data is available as of now, 36 IPOs received a mega response of more than 10 times (of which 6 IPOs more than 100 times) while 8 IPOs were oversubscribed by more than 3 times. The balance 15 IPOs were oversubscribed between 1 to 3 times.

The year witnessed tremendous response from retail investors as well. The average number of applications from retail was 14.36 lakh, in comparison to 12.77 lakh in 2020 and 4.05 lakh in 2019. The highest number of applications from retail in 2021 was received by Glenmark Life Sciences (33.95 lakhs) followed by Devyani International (32.67 lakhs) and Latent View (31.87 lakhs).

The amount of shares applied for by retail was a huge 135 per cent of the IPO mobilisation (156 per cent in 2020). But, the total allocation to retail was Rs 24,292 cr which was just 20 pc of the total IPO mobilisation (down from 32 per cent in 2020).