There are many experts that say the world is heading toward recession but at the same time, India has seen a series of IPO launched in the past years. These IPOs range from the SME category to being some of the biggest IPOs in the country. Some of the top names in the IPO bazaar where the investor response shook many Indisutrry experts as well are the LIC IPO, Coal India IPO, etc. So which are the biggest IPOs in the history of Indian stock markets? Given here is the list of the same and related details for IPO investment.
Read More: Book building process in an IPO
Let us begin with the primary question or the meaning of an IPO. IPO stands for Initial Public Offering. It is the process by which a private limited company offers shares of its stock to the public for the first time. A company has to follow due process for the launch of the IPO right as per the guidelines of SEBI and the Companies Act, 2013. The company has to issue a prospectus to provide all the necessary information about the IPO and the company so investors can make an informed decision about investing in the IPO. There can be two types of IPOs namely the fixed price IPO and book-built IPO. The issue price is determined by the underwriters in association with the company and the demand and supply forces of the market determine the final price of the stock posit issue of the IPO.
Here are details of the biggest IPOs in India
The LIC IPO was introduced in the market in 2022. The issue dates for this IPO were from 4th May – 9th May 2022 and it was the biggest IPO in the country with a price band of Rs.902 – 949 per share (discount of INR 45 for retail investors) and an issue size of Rs. 21,000 crores. The shares of LIC were listed on the stock exchanges on 17th May 2022 and it was subscribed for nearly 3x over the period of the issue days
PayTM IPO was launched with a lot of buzz and became the second-biggest IPO in the country. This IPO was launched between the 8th – 10th of November 2021. The PayTM IPO size is Rs. 18,300 crores and the price band for this issue was R. 2080-2150. The company was not profitable at the time of the IPO and had no remote chance of the same in near future. The IPO did not receive as much response with HNIs completely giving it a miss and was listed at a discount of 9.3% to its offer price.
Coal India is considered to be one of the biggest Navratna of the country and ranks third in terms of IPO size which was to the tune of Rs. 15,200 crores. The IPO was launched open between 18-21 October 2010 and saw a subscription of over 15 times. Retail investors were able to make listing gains of up to 25% and the price band of this issue was Rs. 225 – Rs. 245 per share.
Reliance Power came in 2008 at the time of the emerging US subprime crisis. The IPO attracted a lot of attention given its name and it was considered to be the launch of Mr. Anil Ambani. The company did not have any operational power plant at the time of the IPO but still commanded a 100% premium in the grey market. This IPO was fully subscribed to within a few minutes up to 73 times making it one of the highest ever. However, the shares could not hold much ground post-listing, and was one of the first Reliance companies where shareholders lost their wealth significantly.
GIC IPO was introduced in 2017 between 11-13 October. This IPO had a price band of Rs. 855- Rs. 912 per share and the issue size was Rs. 11,175 crores. This IPO was mostly given a miss by the HNIs but the retail investors were offered a discount of Rs. per share on the issue price. This resulted in ensuring marginal gains for the investors in the form of listing gains. Although it is one of the biggest IPOs in India it is not the most popular one.
The SBI Cards IPO is another major name in the list of biggest IPOs in the country and was listed on 16th March 2020. This IPO was introduced between 2nd to 5th March 2020 with a price band of Rs, 750-755 per share and an issue size of Rs. 10,355 crores. The IPO was given a huge thumbs up majorly by the QIB and HNI category of investors with approximately 26.5 times subscription of the IPO but was still listed at a discount owing to the onset of the Covid-19 pandemic.
This IPO is quite prominent in the Indian markets as it was an IPO from one of the major Indian companies and was able to raise a whopping amount of over Rs. 10,000 crores. This IPO was launched on 5th March 2004 and closed on 13th March 2004. The price band of this IPO was Rs. 680 – Rs. 750 per share and also offered a discount of 5% to retail investors. The IPO offered 10% shares of the company and has been successful in providing huge returns to investors in the form of consistent dividends and capital appreciation.
This IPO was launched in the market on 1st November 2017 and closed on 3rd November 2017. The size of this IPO was approximately Rs. 9,600 crores but was pulled through majorly on the backdrop of the QIB demand. The retail investors were able to make marginal listing gains on account of the discount offered at the time of subscription but the IPO tanked brutally in the coming weeks. It is etched in history as one of the worst-performing IPOs in the Indian markets
This is one of the recent IPOs in the Indian market and was launched in 2021. This IPO paved the way for unicorn start-ups to attract public money and be successful in raising capital to meet their requirements. The Zomato IPO size was Rs. 9,375 crores as was launched between 14th July – 16th July 2021 with a price band of Rs. 72 – Rs. 76 per share. This IPO was listed with over 50% premium and provided huge gains, especially for retail investors in the initial days. This IPO led the valuation of Zomato to be valued at over Rs. 1,00,000 crores.
This IPO was launched on 11th June 2007 and closed on 14th June 2007. The IPO size was Rs. 9,187 crores with a price band of Rs. 500-Rs. 550 per share. The IPO was subscribed approximately 3.47 times and was next only to ONGC at the time of its launch. Investors benefited by listing gains at the time but the company has since lost a lot of footing due to the ban by SEBI for a period of 3 years.
Apart from the above list of the top 10 IPO in the Indian stock markets, there are many other IPOs that created a lot of buzz and were lapped up by investors as well. These IPOs include famous names like Nykaa, NHPC, Gland Pharma, IRFC, and more. The IPO markets are seeing a series of new entrants in 2023 even from the SME sector and many new names are expected to hit the markets soon.
Some of the common factors to consider while investing in an IPO include the fundamentals of the company, its valuation, prevailing market conditions, lock-in period (if any), risk analysis, etc
The possible benefits of investing in an IPO are access to early investment in a company with huge growth potential, the potential for higher returns and listing gains, an opportunity to be part of companies that have a good past performance, etc.
The possible risks of investing in IPOs include market risk, liquidity risk, valuation risk, company-related risks, regulatory risk, etc.
The prime limitations of investing in SME IPOs include the risk of having limited information and performance track record, liquidity risk, limited interest from institutional investors, high risk of failure and more.
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