In terms of fund raising through IPO, it was the best year for India Inc since 2010.
Market watchers and analysts are predicting an even busier year in 2017, with over two dozen issues including the mega issues of NSE and BSE already lined up to hit the market.
Over two dozen initial public offerings (IPOs) hit Dalal Street during 2016 and retail investors came back in droves to lap up most of them; the retail quota saw oversubscription in 23 of 26 issues during the year. Qualified institutional buyers and non-institutional investors, too, were very active, going head over heels to subscribe them.
The below are the stocks that were big newsmakers of 2016 in the primary market (IPO market)
Infibeam Incorporation, Advanced Enzyme Technologies and Quess Corp, whose stocks have surged 153 per cent, 130 per cent and 111 per cent since there listing against issue prices of Rs 432, Rs 1,210 and Rs 499, respectively. The issues saw oversubscription of 1.31 times, 11.67 times and 34.08 times in the retain quota.
Several companies from diverse sectors hit the primary markets during the year and raised over Rs 26,000 crore, double the amount raised in the previous year. It's the best performance for the IPO mark in terms of fund raising since 2010, when companies has mopped up nearly Rs 37,535 crore.
Shares of Mahanagar Gas clocked 28 per cent listing gains on the day of market debut, and are up 86 per cent since its listing on July 1 at Rs 783 against the issue price of Rs 421.
Ujjivan Financial Services, RBL Bank and ThyrocareBSE 0.00 % Technologies have surged over 50 per cent till date to trade at Rs 335.25, Rs 351.55 and Rs 680.35 against issue prices of Rs 210, Rs 225 and Rs 446, respectively.
Shares of the recently-listed Sleepwell mattress maker Sheela Foam are trading nearly 30 per cent higher at Rs 956 against the issue price of Rs 730. The company got listed on the bourses on December 1 and hit the upper circuit on debut.
That, even though the IPO received lukewarm response from retail investors, whose quota was got subscribed only 0.44 times, while the portions set aside for QIBs and non-institutional investors got subscribed 14.51 times and 3.35 times, respectively.
Equitas Holdings, SP Apparels, Parag Milk Foods, Endurance Technologies and Bharat Wire Ropes are the other top IPOs which also received robust subscription from retail investors and are trading with over 10 per cent gains against their issue price of Rs 110, Rs 268, Rs 215, Rs 472 and Rs 45, respectively.
Teamlease Services, Dilip Buildcon, L&T Technology, GNA Axles and PNBBSE -2.46 % Housing Finance also got listed at a premium this year. Among these, PNB Housing Finance is trading 11 per cent higher against the offer price, followed by Teamlease Services (up 4.71 per cent) and Dilip Buildcon (2.74 per cent).
Laurus Labs, the last IPO of 2016, was also oversubscribed by retail investors. The issue got subscribed 4.57 times, and shares of the company got listed at a 15 per cent premium at Rs 489 against the issue price of Rs 428.
IPO’s didn’t work best are as following
Among the not-so-happy stories, Healthcare Global got listed at a discount at Rs 209.80 on March 30 against the issue price of Rs 218. But the stock is currently trading at Rs 239, up nearly 10 per cent from the issue price.
Among other majors laggards, HPL Electric & Power is down 51 per cent from the issue price of Rs 202, while Precision Camshafts is down 17 per cent, Quick Heal Technologies 15 per cent and Varun Beverages 7.53 per cent.
IPO’s to watch for the year 2017
Data available from Sebi and investment bankers, suggest the primary market is set to become even busier going forward. Some 20 IPOs worth at least Rs 12,500 crore are already lined up for the New Year, and more are readying to join the queue.
Stock bourse National Stock Exchange (NSE) will be one of the much-awaited issues to hit the market in 2017. Interim Chairman Ashok Chawla said that the stock exchange was planning to file the draft red herring prospectus (DRHP) with Sebi by December 20 and launch the initial public offering by the middle of March.
BSE also has plans to list on the bourses next year. Among others, leading textbook publisher S Chand and Company has filed draft papers for initial public offer (IPO) that includes fresh share issue worth Rs 300 crore.