Like the secondary market where Sensex and Nifty are at record highs, the primary market or where the shares are offered for the first time to the public before the listing is also gaining momentum. On Friday, two initial public offerings (IPO) closed for the subscription. The investors’ response is unbelievable!
The specialty chemicals company based in Pune, Clean Science and Technology attracted investors’ bids worth Rs 1,03,248 crore against the offered size of Rs 1,546.62 crore. Similarly, GR Infraprojects subscribed 102 times attracting bids worth Rs 98,784 crore.
The two IPOs have raised Rs 2.02 lakh crore – almost the amount the central government is budgeted to earn from non-tax (spectrum fees, dividend from public sector undertakings, disinvestment of government companies, etc). In the budget for 2021-22, the government is expecting total non-tax revenue of Rs 2.43 lakh crore.
In the first quarter of 2021-22, a total of 15 IPOs have successfully raised funds from the public. The total amount raised by these companies is Rs 18,383 crore. This is on the back of Rs 74,707 crore raised by 69 issuers in 2020-21, a pandemic year.
At a time when the real economy is still in recovery mode, real interest rates (difference between inflation and one-year fixed deposit rates) are negative, rising unemployment and salary cuts after the worst pandemic in a century, more and more investors are queuing for registering with the stockbrokers.
On Thursday, the Central Depository Services (India) Limited (CDSL), a custodian of securities in dematerialized form reached a new milestone – the first-ever depository to have four crore active Demat accounts. The number of active clients doubled Since January 2020 – or in eighteen months from two crores, the company said.
Similarly, the number of registered investors on the Bombay Stock Exchange (BSE), has increased by 40.5 percent or 2.05 crore in June from a year-ago period. Similarly, the pace of new registered clients on the National Stock Exchange (NSE) has more than doubled. In June 2020, new client registration with NSE was 5.64 lakh, it increased to 14.84 lakh in May this year.
Few of the biggest IPOs of 2021
|Company Name||Issue Size Rs Crore||Subscription Received Rs crore|
|Shyam Metalics and Energy||306||37.157|