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As Syrma breaks the IPO drought, a quick look at the best and worst offerings of recent times

As Syrma breaks the IPO drought, a quick look at the best and worst offerings of recent times

As Syrma breaks the IPO drought, a quick look at the best and worst offerings of recent times
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By CNBCTV18.com Aug 12, 2022 9:32:33 AM IST (Updated)

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SUMMARY

Dalal Street is set to have its first IPO in as many as 11 weeks. The initial share sale of Syrma SGS Tech is the 17th in 2022, a year that has had its own set of hits and misses following a blockbuster 2021. LIC — whose IPO was the biggest of all time in India, for instance, debuted at a discount to the issue price, and in fact, has failed to command a premium ever since. Here's a look at some of the best and worst IPOs of recent times:

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Syrma SGS Technology's IPO to raise about Rs 840 crore is the first public offer since Aether's to raise Rs 808 crore in late May 2022. Potential investors will be able to bid for Syrma SGS shares in a range of Rs 209-220 apiece in multiples of 68 in the subscription window, which opens on August 12 and ends on August 18. (Read more on Syrma IPO)

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Syrma's IPO comes at a time when the Nifty50 benchmark has come within five percent of its record high of October 2021, but many experts believe it will be a while before it makes new highs citing stretched valuations. Sustained buying by FIIs — following 10 straight months of selling — has helped the index escape what many have called one of the slowest bear markets.

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2022 has so far had 16 new offerings in the primary market. Although a majority of these new listings have been fully subscribed and listed at premiums to the issue price, investors don't seem to be chasing IPOs the way they did in 2021 — one of the best years for the primary market in recent times.

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Since their stellar debut in the secondary market in October 2021, Paras Defence and Space Tech immediately began a winning spree to multiply the wealth of its investors. As of Aug 11, 2022, the stock stands 273 percent above its issue price. That means those who won allotment in the Paras Defence IPO and held on to their investment are sitting on a return of nearly four times in less than 11 months.

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And here's a look at some of the biggest duds of recent times. LIC's mega IPO — the largest public offer the country has ever seen — listed at a discount to the issue price and have been gradually declining ever since. As of August 11, the stock is 28 percent below the upper end of its IPO price range.

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Though most of the 63 IPOs in 2021 saw full subscription, almost one fourth of them began their journey in the listed world in discount territory. Star Health was the only IPO of the year to have ended without being fully subscribed.

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Before the listing of LIC in May 2022, the biggest IPO of all time in India was Paytm, whose IPO ended with a subscription of 1.9 times the shares on offer. The stock of One97 began its journey in the secondary market at a discount of nine percent to the issue price, and has been deep in the discount zone ever since.

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