IPO or Initial Public Offering is the process of offering shares of a private company to the public in a stock issuance for the first time.
IPO market gave a record-breaking performance in 2021, which according to market calculations, was considered to be the best IPO year in two decades. In 2022 however, the IPO market gave mixed returns due to increased unpredictability because of global economic turmoil and geopolitical tensions.
In 2021, a total of Rs 1.2 lakh crore was raised by 63 companies whereas in 2022 the IPO market raised only Rs 57,000 crore.
If we talk about the worst performers of the year 2022. IPOs such as LIC, Delhivery, and AGS Transact Technologies were the worst performers with negative returns of more than 25% since their listing was opened.
To the market’s relief, some stocks did well in 2022 and traded well above their issue price. Stocks like Venus Pipes & Tubes and Adani Wilmar grew impressively somewhere between 100% and 150% in 2022.
Best Performers of 2022
Adani Wilmar was listed in January 2022. Since then it remained the top-performing IPO for the year 2022. It enjoyed an impressive return of more than 128% since its listing. Hariom Pipe Industries (116%), Venus Pipes & Tubes (115%), Veranda Learning Solutions (76%) and Vedant Fashion (51%) were among the other top-performing IPOs of 2022.
As far as listing day performance is concerned, DCX Systems gave the highest return of 49.18%, followed by Harsha Engineers at 47.24% and Hariom Pipe Industries at 46.86% on the day of listing.
Biggest IPOs of 2022
Apart from the best and worst performers, we also have the biggest IPOs that were listed in 2022.
Life Insurance Corporation of India (LIC), listed its IPO with a huge issue size of Rs 21,000 crore. making it the biggest IPO of 2022. However, it could not perform well and the stock fell about 28% since its listing. Other biggest IPOs of the calendar year 2022 were Delhivery (Rs 5,235 crore), Adani Wilmar (Rs 3,600 crore), Vedant Fashion (Rs 3,150 crore), and Global Health (Rs 2,206 crore).
2022 was one bittersweet year for the IPO market where the market witnessed a downfall as well as touched new heights. Indian markets were largely affected by inflationary pressure, economic growth risks, geopolitical tensions, and rising interest rates.
In the coming year 2023, experts have comprehended that close to 100 public offerings are likely to be launched in 2023.
Let us see how this new year unfolds for the IPO market.