38,155 crores came from 51 IPOs so far this year: their average return is 50%, till August last year 55 companies had raised Rs 64,768 crores

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The calendar year 2022 may be disappointing for the primary market. The number of IPOs so far this year has come down on a year-on-year basis, but in terms of returns, investors have earned better from these IPOs. IPOs have delivered an average of 50% returns in 2022 so far, while the Sensex has gained just 1.6%. Companies have raised a total of Rs 38,155 crore from 51 IPOs so far this year, although companies had raised Rs 64,768 crore from 55 IPOs in the same period last year.

LIC’s biggest IPO this year
There have been only eight IPOs in 2022 as compared to last year, which can be called big in size. Of these, LIC’s IPO was the largest at Rs 15,381 crore, but it is one of the poor performers in terms of returns. 33 other companies had IPOs worth more than 1,000 crores. This information has come out from the analysis of Bank of Baroda economist Dipanvita Majumdar.

Major IPO returns above Rs 1,000 crore in 2022

name of the company Issue Size (Rs. in Crore) return on issue price
Adani Wilmar 15,381 +205.6%
Patanjali Foods 4,544 +106%
Vedanta Fashion 3,139 +57.3%
Delhivery 3,045 +17.5%
LIC 2,818 -31.1%

IPO gave 74% return in 2021 against Sensex’s 20% rise
According to the analysis report, IPOs gave 74% returns during 2021 as against the 20% rise in the Sensex, but shares of 16 large IPOs with more than Rs 1,000 crore are currently trading at a discount. There were a total of 99 IPOs in the entire calendar year 2021. Through these companies, the capital of Rs 1,21,680 crore was raised from the market.

Opportunity to invest in Harsh Engineers International’s IPO from today
Harsh Engineers International’s IPO opens today i.e. 14th September and will be available for subscription till 16th September. Harsh Engineers International has fixed a price band of Rs 314 to 330 for the IPO. The size of this IPO is Rs 755 crore.

What is an IPO?
When a company offers its shares to the public for the first time, it is called IPO. This IPO is issued by companies so that they can come in the stock market. After entering the stock market, buying and selling of shares of the company can be done in the stock market. Once the company’s shares are allowed to trade, then they can be bought and sold. After this, the investors share in the profit and loss arising from buying and selling of the stock.

Why does the company issue an IPO?
When a company needs money to expand its business, it issues an IPO. This IPO company can issue even when it is short of funds, it wants to raise money from IPO instead of taking loan from the market. After getting listed in the stock market, the company raises money by selling its shares. In return, the people who buy the IPO get a stake in the company. Meaning when you buy shares of a company, you are the owner of the purchased part of that company.

Credit: www.bhaskar.com /

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