IGI Logo

Below is Perspective on The performance of IPO's this year and the Outlook for 2022 By Mr. Mohit Ralhan, Managing Partner & Chief Investment Officer of TIW Private Equity

2021 has been a watershed year for IPOs in India. Till the end of November, 53 IPOs have raised close to US$ 15 billion, making it the best year for mobilizing funds through IPOs. It also indicates the increasing confidence of investors - institutions, HNIs and retail alike – in the growth story of India. While the IPOs in technology and digital industries were the largest and most talked about, there was an extremely healthy sector spread that included healthcare, speciality chemicals, manufacturing, agrochemicals, consumer, financial services and infrastructure among others.

The investor interests have also been rewarded handsomely. The portfolio of 2021 IPOs would have given a return in excess of 35%, with 39 out of the 53 IPOs generating positive returns till the end of November. The best performer has been Paras Defence and Space Technologies, generating a return of ~316% till now, closely followed by MTAR technologies, which has generated return of ~315%. A lot has been written on the negative returns generated by Paytm’s IPO, but it just reminds the fact that investors need to always keep their guards on. The large size of Paytm’s IPO coupled with a complex business model and high valuation metrics dampened the performance post listing. In spite of this, the IPO story of India races ahead and the IPOs which were launched after Paytm, such as Go Fashion and Tega Industries proved to be extremely successful.

This augurs well for 2022, which is expected to be even bigger with the likes of LIC, Ola, Byju’s and Delhivery expected to take the IPO route. India is home to 79 unicorns and 2021 alone gave birth to 42 unicorns. India is the third-largest startup hub in the world and has developed a strong ecosystem of entrepreneurs & venture capital investors, supported by favourable government policies, which will continue to feed into India’s accelerating IPO boom. The story has just begun, and the future looks quite bright.

Above views are of the author and not of the website kindly read disclaimer