nvestors in 2022 IPOs had a mixed year, with only a handful stocks delivering strong returns. Among the three dozen stocks that hit the Street, only three could manage to double investor money during the year.
Out of 40 companies that came up with IPOs this year, 36 companies got listed this year, as per AceEquity. The first half of the current calendar was better than the second half, said analysts.
A majority of issues delivered positive listing gains, they said but felt companies that would come up in 2023 may demand lesser valuations.
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Adani Wilmar was the best performing issue for the year. The stock surged 163 per cent for the year to Rs 605 over its issue price of Rs 230, till Thursday. The Adani Group company raised Rs 3,600 crore between January 27 and January 31, 2022.
It was followed by Hariom Pipe Industries, which has risen 134 per cent over its issue price of Rs 153. The company’s IPO ran between March 30 and April 5, raising a little more than Rs 130 crore. The scrip settled at Rs 357.35 on Thursday.
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Venus Pipes and Tubes also turned multibagger as the stock gained 117 per cent to Rs 707.55 on Thursday. The company raised Rs 165.42 crore between May 11-13 by selling its shares for Rs 326.
Patanjali Foods’ FPO shares jumped about 80 per cent from their issue price, whereas Veranda Learning delivered a return of up to 75 per cent. Vedant Fashions, Prudent Corporate Services, Electronics Mart, Bikaji Foods and Campus Activewear were the other best performers for the year.
A majority of IPO rewarded investors but the gains were skewed, said Kranthi Bathini, Equity Strategist, Wealthmills Securities.
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“We are cautiously optimistic over the primary markets in 2023 as the valuations are likely to ease down, becoming more realistic for the investors, particularly the loss making companies,” Bathini said.
Other analysts also echoed the similar tone, adding that companies should seek reasonable valuations to match the appetite of primary market investors.
Vinit Bolinjkar, Head of Research at Ventura Securities said the IPOs that left something on the table for investors delivered strong gains and that the overpriced issues were not taken kindly by retail bidders.
“There is enough money for the primary markets, but investors are looking for rewards, which can happen if valuations are reasonable,” he added. “Money will find its value but there has to be some value on the table.”
