How IPOs fared in 2022 and check key offerings expected to be launched in 2023

The Indian primary market had 39 initial public offering (IPO) launches with a total issue size of Rs.64,670 crore in the calendar year (CY) 2022. These included much-awaited IPOs like LIC of India, Delhivery, Sula Vineyards and many more. Now, close to 100 IPOs with diversified offerings and sectors are getting ready for retail and institutional investors in CY23. Given that, let's look at the performance in 2022 and the way forward

Of the 39 new listings in CY22, 25 companies ended day 1 with listing gains ranging from 1.1 percent to 49.2 percent. The highest listing gain of CY22 was from DCX Systems, which was issued at Rs.207 and closed on day 1 at Rs.308.80, said Tejas Khoday, co-founder and CEO of FYERS in an exclusive interaction with CNBC-TV18.com.

"Based on the current prices of these 39 IPOs, seven companies have delivered excellent returns, with Adani Wilmar leading the pack at 168.5 percent, followed by Hariom Pipe Industries (135.4 percent) and Venus Pipes (118.8 percent). Ruchi Soya Industries, Veranda Learning Solutions, Prudent Corporate Advisory Services and Vedant Fashions are the other companies with gains higher than 50 percent (based on 30 December closing prices)," Khoday said.

As mentioned above, close to 100 IPOs may come for retail and institutional investors in CY23. Based on the information from primary market filings, around 60 companies have already received Sebi approval and are in the final stages of launching the IPO.

Another 37 companies are awaiting SEBI observations and comments on their draft documents. If stock market conditions remain buoyant, most IPOs can hit the market in CY23, Khoday believes.

Navi Technologies, Yatra Online, TVS Supply Chain Solutions, Biba Fashions, Vikram Solar, and Droom Technology are some of the well-known firms in the queue, Khoday said.

Other IPOs like B9 Beverages (Bira), Snap Deal, and Lava International are in the process. The issue size of the firms ranges from Rs 250 crore to as high as Rs.8,000 crore, with issue types ranging from entirely OFS to a mix of fresh equity and OFS.

In 2022, investors opted for IPOs with good business outlooks and where the offer price provided the comfort of valuations and listing gains.

While the onus of a better issue price rests on the promoter and merchant bankers, Khoday believes that investors should be cautious enough to read the RHP and understand the fund raising objectives and the proposed valuations before applying for any IPO rather than applying based on the grey market pricing.