V shaped Recovery and Booster IPOs in YEAR 2020

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V shaped Recovery and Booster IPOs in YEAR 2020

The year 2020 is coming to an end with the silent hope of covaccine to fight the global crisis. The economy across nations is facing distress. Even as COVID-19 continues to hit GDP, FIIs boosted the Indian Equity markets.

The Nifty 50 saw a low of 7500 in March 2020 and has made a new record of 14000 (and increasing) at the end of December 2020. The Sensex had come down to 25000 levels in March, rising to 47800 levels towards the end of December 2020. This depicts a V-shaped recovery for the stock market. Data from NSDL shows that FII infused Rs 60, 358 crores in Indian equity in the month of November 2020. Back in the month of March 2020, FIIs had sold domestic equity to the tune of Rs 61,973 crore. Participation by the FIIs infused strong confidence in the domestic markets making the companies richer in valuations and rewarded investors with high returns. V shaped recovery and Booster IPOs in YEAR 2020

IPO Report 2020

The year 2020 has been a shining year for the IPO stocks both for the issuers and the investors! IPOs worth Rs 31,128 crore were issued in the market. The investors had hit a jackpot with IPOs giving hefty listing gains of upto 112%.The strong market sentiments propelled the boat of many Issuers, even those with weak fundamentals.

Many stocks like Rossary Biotech, Happiest Minds, Route Mobile, Chemcon Specialty Chemicals, Burger King India, and Mrs Bectors Food had stellar listing (listing gains being greater than 50%). Out of the 14 mainline IPOs listed in the year 2020 since March, ten issues enabled investors to make quick money in the form of listing gains while three of the issues doubled on listing.

Mainline IposIssue dateListing DateOffer price
(in Rs)
Listing Price
(in Rs)
Listing GainsCMP as on 30th Dec 2020 (in Rs)
SBI Card: Post IPO Fundamental Analysis and Future ProspectsMar 2, 20202020-03-16 755658-12.85% 841.80
Rossari BiotechJuly 13, 20202020-07-23 42567057.65% 993.80
Happiest Minds IPO SynopsisSept 7, 20202020-09-17 166351111.45% 348.00
Route Mobile IPO SynopsisSept 9, 20202020-09-21 350717104.86% 1132.00
CAMS IPO SynopsisManagement SystemSept 21, 20202020-10-01 1230151823.42% 1865.00
Chemcon Specialised Chemicals IPO SynopsisSept 21, 20202020-10-01 340730.95114.99%416.00
Angel BrokingSept 22, 20202020-10-05
306275-10.13%

335.10
Mainline IposIssue dateListing DateOffer price
(in Rs)
Listing Price
(in Rs)
Listing Gains
(in Rs)
CMP as on 30th Dec 2020 (in Rs)
Mazagon Dock Shipbuilders Limited IPO SynopsisSept. 29, 20202020-10-13 145216.2549.13% 212.5
Likhitha Infrastructure Limited IPO SynopsisSept. 29, 20202020-10-15 1201308.33% 166.00
UTI AMC IPO SynopsisSept. 29, 20202020-10-12 554490.25-11.51% 560.00
Equitas Small Finance Bank IPO SynopsisOct. 20, 20202020-11-02 3331-6.06% 37.60
Gland Pharma IPO-Date, Review and DetailsNov. 9, 20202020-11-20 1500171014% 2340.10
Burger King IPO- Details, Review AnalysisDec. 2 , 20202020-12-14 60115.3592.25% 172.90
Mrs Bectors IPO- Details, Review Analysis Dec. 15 , 20202020-12-24 28850173.96% 517.55
Antony Waste Handling IPO Subscription StatusDec. 21, 2020-----

Going with the flow

Some of the IPO stocks have benefited from strong market sentiments even though they had weak fundamentals. 10 out of 14 stocks listed above their offer price and SBI cards, Angel Broking, UTI AMC, and Equitas SFB listed below their offer price. These 4 stocks also have moved up in the green zone by end of the year 2020. Only two of the IPO stocks, Happiest Minds Technology and Chemcon Speciality Chemicals traded below their listing price.

Wrap up note

Having discussed the IPO euphoria, the momentum in the markets is likely to continue. While the abundance of liquidity worldwide could be one of the reasons for funds being directed into equities, India seems to be getting more than its fair share of EM allocations. The scenario that FIIs may be in the overbought zone also cannot be ruled out and any selling by them could lead to a correction in the market. Hence, it is time to be cautious as currently, the rally seems to be driven by market sentiments.

Finance Post signs off this year to wish our readers “Happy New Year” under this new normal!

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About CA Priyanka Choudhary Jain 122 Articles
Chartered Accountant & an experienced credit analyst. She has worked with CRISIL as a Senior Credit Analyst on rating assignments including business & financial analysis in Corporates as well as the Public Finance Sector. Please mail your queries, feedback, and any suggestions to her on info.financepost@gmail.com

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