How IPOs performed in 2016 [IPO returns in 2016]

India’s primary market is booming as investors can’t seem to get enough of initial public offers (IPOs), encouraged by recent stellar listings.

2016 has witnessed quite a few IPOs and today I’ll be providing the details of the same.

An IPO is short for an initial public offering.

As the name suggests, it’s when a company initially offers shares of stocks to the public.

It’s also called “going public”. An IPO is the first time when the owners of the company give up part of that ownership to shareholders.

But before we look into the companies’ IPO Details, as an investor, following are some of the IPO related terms which you must be aware of:

1) BOOK BUILDING:

Book building is the process of price discovery. That means there is no fixed price for the shares.

Instead, the company issuing the shares comes up with a price band. The lowest price is referred to as the floor and the highest, the cap.

2) MINIMUM ORDER QUANTITY:

Minimum Order Quantity is the minimum number of shares which the investor has to apply for in a public issue. For example, in the case of Precision Camshafts Ltd IPO, the minimum order quantity was 80, i.e. an investor has to bid for at least 80 shares.

3) MARKET LOT:

If an investor wants to bid for shares which are more than the minimum order quantity, then he can do so by bidding in multiples of a certain number of shares which is known as the Market Lot. By continuing the above example, if an investor wants to apply for more than 80 shares of Precision Camshafts Ltd, then bids can be made in multiples of 80 shares, which is the market lot size in case of the Precision Camshafts Ltd issue. Thus, applications can be made for 80, 160, 240 …….the number of shares until the maximum subscription limit is reached.

  • List of IPOs Issued in 2016 (till December 2016)

Details of the IPOs:Note: Only those IPO Issues have been taken into account whose Issue Size was above INR 200 Crore

Precision Camshafts Ltd IPO

Following are the IPO Details:

Quick Heal Technologies Limited

The IPO Details:

Health Care Global Enterprises Limited

Following are the IPO Details:


Purchase of medical equipment With the fresh issue of shares, the company had proposed to utilise the funds for:

  1. Investment in IT software, services and hardware
  2. Pre-payment of debt
  3. General corporate purposes.

 

Infibeam Incorporation Limited

Infibeam Incorporation Ltd is Ahmedabad, Gujarat based e-commerce company offering cloud-based, modular, customizable and scalable technology platform as well as e-commerce infrastructure and logistics support for a diverse universe of merchants, products and services. Company operates Infibeam.com, one of India’s leading multi-category e-retail website.

Following are the IPO Details:

Equitas Holdings Limited

It’s IPO Details are as follows:

Thyrocare Technologies Limited

It’s IPO Details are as follows:

Ujjivan Financial Services Limited

Following are the IPO Details:

Parag Milk Foods Limited

The IPO Details are as follows:

Mahanagar Gas Limited

Following are the IPO Details:

Quess Corp Limited

Following are the IPO Details:


The IPO had got fully subscribed on Day 2 itself.

Larsen & Toubro InfoTech Limited

It has high dividend payout policy, with payout of over 75 percent in the last three years.


S. P. Apparels Limited

It was incorporated in 1989. They mainly export their products to United Kingdom.


RBL Bank Limited

It is one of India’s fastest growing private sector banks in the last five years.

The following table shows the IPO Details:


HPL Electric and Power Limited:

Following are the IPO Details:

 

ICICI Prudential Life Insurance Company Limited:

The IPO Details are as follows:


The public issue—the first by an Indian insurance company and the largest initial share sale in six years—had received bids for 1.38 billion shares against 132.37 million shares on offer, stock exchange data showed.

 

Endurance Technologies Limited

The table shows the IPO Details:


The initial public offering of Endurance Technologies Ltd, an Aurangabad-based automobile parts maker, was subscribed 43.7 times on the final day of the issue.

 

PNB Housing Finance Limited:

The IPO Details are as follows:


For the IPO, PNB Housing Finance had set a price band of Rs750-775 per share.

 

Sheela Foam Limited:

The IPO Details are as follow:


The initial public offer (IPO) of Sheela Foam, maker of Sleepwell mattresses, was fully subscribed till afternoon trade on the last day of bidding.

The IPO received bids for 65,38,260 shares as against the total issue size of 52,50,001 shares, garnering a subscription of 1.25 times, as per NSE data till 1400 hours.

The retail investor portion was subscribed 7 percent till yesterday, while the quota reserved for Qualified Institutional Buyers (QIBs) and non-institutional investors was subscribed by 9 percent and 1 percent, respectively.

The company has fixed the price band at Rs 680-730.

Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue.

 

Laurus Labs Limited:

Incorporated in 2005, Laurus Labs Ltd is Hyderabad based pharmaceutical company. Laurus Labs is in the business of manufacturing generic active pharmaceutical ingredients (APIs) for therapeutic areas of antiretrovirals (ARVs) and Hepatitis C. Company also manufacture APIs in oncology and other therapeutic areas.


Laurus Labs Ltd had set an IPO price band of Rs426-428 per share. The shares were allotted to the anchor investors at Rs428 per share, the top end of the IPO price band.

 

IPO Issue Size (in INR Crore)

Share of Companies which issued IPO in 2016

RETURNS – YEAR TIME FRAME

Legend Name Returns
1 Precision Camshafts Ltd IPO -18.12%
2 Quick Heal Technologies Ltd IPO -16.57%
3 Healthcare Global Enterprises Ltd IPO 12.39%
4 Infibeam Incorporation Ltd IPO 177.92%
5 Equitas Holdings Limited IPO 36.91%
6 Thyrocare Technologies Ltd IPO 57.31%
7 Ujjivan Financial Services Ltd IPO 60.02%
8 Parag Milk Foods Ltd IPO 22.40%
9 Mahanagar Gas Limited IPO 102.39%
10 Quess Corp Ltd IPO 111.09%
11 L&T Infotech Ltd IPO -2.63%
12 S P Apparels Ltd IPO 30.39%
13 RBL Bank Ltd IPO 56.84%
14 ICICI Prudential Life Insurance Company Ltd IPO -2.19%
15 HPL Electric & Power Ltd IPO -49.73%
16 Endurance Technologies Ltd IPO 21.31%
17 PNB Housing Finance Ltd IPO 5.91%
18 Sheela Foam Ltd IPO 27.18%
19 Laurus Labs Ltd IPO 11.12%

STATISTICAL OVERVIEW

Total IPOs Issued

Change in Total No. of IPOs

                                                                                                                                                                           

                                                                                                                               (In INR Crore)

Rate of Change (%)


Annually IPO Issues Failure

(In INR rupees)


Average IPO Issue Price (in INR Rupees)

Rate of Change (%)

REFERENCE:

 

NSE

Conclusion:

 

This shows that IPOs performed very well in 2016. In this year, till march 2017, two IPOs have been launched, BSE (Bombay Stock Exchange) and Avenue Supermarts (Parent company of D-Mart) and both have performed very well. Avenue supermarts made a mind boggling debut by giving more than 100% returns on the very first day.

Did you invest in IPO?

What is your experience?

 



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