Trends in Secondary Markets:
BSE Sensex went up by 1.73% to close at 58,254 in December 2021 as against 3.45% down to close at 57,261 in November 2021. Nifty 50 closed at 17,354 which was 2.18% higher as against 3.90% lower to close at 16,983 in November 2021.
Foreign Institutional Investors (FIIs) divested Rs. 35,494 Crore while Domestic Institutional Investors (DIIs) invested Rs. 31,231 Crore in the Indian equity markets in the month of December 21.
Majority of the BSE Indices went up in the month of December. The highest increase was Information Technology (10.07%) followed by Teck (8.13%). Amongst the stocks that went down were Energy (-1.31%) and Finance (-1.11%).
Primary market Update:
There were 12 main board IPOs of Star Health and Allied Insurance Company Limited, Tega Industries Limited, Anand Rathi Wealth Limited, RateGain Travel Technologies Limited, Shriram Properties Limited, C.E. Info Systems Limited, Metro Brands Limited, Medplus health Services Limited, Data Patterns (India) Limited, HP Adhesives Limited, Supriya Lifescience Limited and CMS Info Systems Limited in December 2021 as against 10 main board IPOs in November 2021.
There were 3 SME IPOS of DMR Hydroengineering and Infrastructures Limited, Clara Industries Limited and Brandbucket Media & Technology Limited in December 2021 as against 2 SME IPOs in November 2021.
IPOs in 2021:
2021 was the year of IPOs (Initial Public Offers). Total of 63 companies raised around Rs.1.2 lakh Crore through IPOs which is the highest amount ever raised in a single calendar year.
Economic recovery following Covid-19 pandemic and abundant liquidity in the system due to accommodative monetary policy provided ideal conditions for companies to raise funds. Lot of private equity funds also made exits with attractive returns.
This is the list of top 15 IPOs based on the funds raised.
Performance of these IPOs varied largely. FSN E-Commerce Ventures Ltd. (Nykaa) was the highest gainer on the day of listing followed by Clean Science and Technology Ltd. Medplus Health Services Limited was the third highest gainer on the day of listing. One 97 Communications Limited (PayTM) was the biggest loser on listing day followed by CarTrade Tech Limited.
Currently, Clean Science and Technology is trading above around 195% the issue price followed by Nykaa which is trading at around 88% above the issue price whereas Paytm is trading 39% below the issue price in spite of being the largest IPO in Indian history.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.
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