10 biggest IPOs in the Indian IPO history

The capital market is one of the significant aspects of every financial market. It is a market for the long term funds- both debt and equity – and funds raised within and outside the country. It provides long-term debt and equity finance for the government and the corporate sector.

Capital market can be classified into primary and secondary markets. The primary market is a market for new shares, whereas in the secondary market the existing securities are traded. The primary market is a market for new issues i.e. a market for fresh capital or securities.

The securities can be in many forms such as equity shares, preference shares, debt instruments, bonds etc. The new issue for fresh capital can be termed as IPO. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. The various types of issues can be seen below.

PROCESS:

  • The Company should file the draft prospectus and along with the necessary documents. The draft prospectus should have been prepared in accordance with the SEBI (ICDR) Regulations governing preparation and issue of prospectus prevailing at the relevant time.
  • NSE will peruse the draft prospectus only from the point of view of checking whether the draft prospectus is in accordance with the listing requirements.
  • The Company should also submit the SEBI letter indicating observations on the draft prospectus or letter of offer by SEBI.
  • SEBI does not play any role in price fixation.
  • The Company in consultation with the merchant banker on the basis of market demand decides the price. The offer document contains full disclosures of the parameters which are taken into account by merchant Banker and the Company for deciding the price.

Now that we are familiar with the meaning of an IPO and the process the Companies have to go through, let’s look into the top 10 Indian IPOs.

 

  1. COAL INDIA LTD.:

Coal India Limited is the largest coal producing company in the world, based on raw coal production of 431.26 million tons in fiscal 2010. Coal India Ltd produces non-coking coal and coking coal of various grades for diverse applications.

Issue Details:


The company had raised Rs. 15,200 crore through IPO by issuing 63.16 crore equity shares. Against an IPO issue size of Rs. 155 billion, it received bids for Rs. 2,400 billion making it the second highest collections in any IPO in India.

On the first day of its listing on the stock market, its shares soared 40% higher than IPO price. CIL was included in the 30 member BSE SENSEX on 8 August 2011. On 30 January 2015 in an Offer For Sale (OFS), Government of India sold a further 10% stake in CIL. Priced at Rs. 358 per share, the sale fetched the government Rs. 225.5763 billion, making it the largest ever equity offering in the Indian Share Market.

 

THE BELOW CHART SHOWS THE STOCK PERFORMANCE SINCE ITS IPO

 

  1. RELIANCE POWER:

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group. It was established to develop, construct and operate power projects in the Indian and international markets. Reliance Infrastructure Limited, an Indian private sector power utility company and the Anil Dhirubhai Ambani Group promote Reliance Power.

The company is the sole distributor of electricity to consumers in the suburbs of Mumbai. It also runs power generation, transmission and distribution businesses in other parts of Maharashtra, Goa and Andhra Pradesh.

Reliance Power IPO was issued on 15th January 2008 and closed on 18th January 2008. Reliance Power Limited Company generated capital worth Rs.11, 700 crores through the IPO. The company attracted $27.5 billion of bids on the first day of its initial public offering (IPO), equivalent to 10.5 times the stock on offer, thereby, creating India’s largest IPO record after Coal India IPO.

The proposed IPO was to fund the development of its six power projects across the country whose completion dates were scheduled from December 2009 to March 2014. The price band of the equity shares of Reliance Power IPO has been fixed at Rs. 405 – 450 per equity share.

THE BELOW CHART SHOWS THE STOCK PERFORMANCE SINCE ITS IPO

 

  1. ONCG:

Oil and Natural Gas Corporation Limited (ONGC) is an Indian multinational oil and gas company headquartered in Dehradun, Uttarakhand, India. It is a Public Sector Undertaking (PSU) of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas. It is India’s largest oil and gas exploration and production company.

The equity shares are listed on both BSE and NSE. The government had fixed the final share price of the Oil and Natural Gas Corporation (ONGC) at Rs 750 per share, with retail investors being offered the scrip at a discounted price of Rs 712.50 and Rs 10,534 crore was mobilized by one of the largest ever public issues in India.

 

The shareholding structure as of 30 September 2016 was:


THE BELOW CHART SHOWS THE STOCK PERFORMANCE SINCE ITS IPO

 

  1. DLF:

DLF Limited (Delhi Land & Finance) is the largest commercial real estate developers in India and the owner is Kushal Pal Singh. It was founded by Chaudhary Raghvendra Singh in 1946 and is New Delhi, India based. DLF developed residential colonies in Delhi such as Shivaji Park (their first development), Rajouri Garden, Krishna Nagar, South Extension, Greater Kailash, Kailash Colony, and Hauz Khas. DLF builds residential, office, and retail properties.

With the passage of Delhi Development Act in 1957, the local government assumed control of real estate development in Delhi and banned private real estate developers. As a result, DLF began acquiring land at relatively low cost outside the area controlled by the Delhi Development Authority, in the district of Gurgaon, in the adjacent state of Haryana. In the mid-1970s, the company started developing their DLF City project at Gurgaon. Its plans include hotels, infrastructure, and special economic zones-related development projects.

DLF, India’s largest real estate development company, had received an overwhelming response to its 100% book built initial public offering (IPO). The IPO comprised 175 million shares, out of which 1 million shares were reserved for employees resulting in a net issue of 174 million shares.

60% of the net issue was offered to qualified institutional buyers (QIBs), 10% was offered to non-institutional investors (including high net worth individuals) and 30% was offered to retail investors. The company chose to price the IPO at Rs 525 per share. At the issue price, the offering size was Rs. 9, 187.5 crores.

 

THE BELOW CHART SHOWS THE STOCK PERFORMANCE SINCE ITS IPO

 

  1. RELIANCE PETROLEUM (MERGED):

Reliance Petroleum Limited was set up by Reliance Industries Limited (RIL), one of India’s largest private sector companies based in Ahmedabad. Currently, RPL amalgamated with RIL, and has interests in the downstream oil business.

RPL also benefits from a strategic alliance with Chevron India Holdings Pte Limited, Singapore, a wholly-owned subsidiary of Chevron Corporation USA (Chevron), which currently holds a 5% equity stake in the Company.

The Reliance Petroleum IPO was launched on 13th April 2006 and the bidding was closed on 20th April. The price band for the Reliance Petroleum IPO was fixed between Rs.57 and Rs.62 per equity share.

This Initial Public Offering of the Reliance Petroleum raised Rs.6,000 crores. The Reliance Petroleum IPO issued 45 crores equity shares and raised Rs.2,790 crores at the upper end of the price band.

The Reliance Petroleum IPO was very popular amongst retail investors, who could bid up to 1600 shares at the upper range of the price band at Rs. 16 per share. Citigroup, Deutsche Bank, Goldman Sachs, LIC, State Bank India, Bank of Baroda and UTI Bank (now Axis Bank) were some of the big pre- IPO private placement investors for the Reliance Petroleum IPO.

THE BELOW CHART SHOWS THE STOCK PERFORMANCE SINCE ITS IPO

 

  1. HCL TECHNOLOGIES:

HCL Technologies Limited is an Indian multinational IT services company, headquartered in Noida, Uttar Pradesh, India. It is a subsidiary of HCL Enterprise. Originally a research and development division of HCL, it emerged as an independent company in 1991 when HCL ventured into the software services business. HCL Technologies (the abbreviation of Hindustan Computers Limited) offers services including IT consulting, enterprise transformation, remote infrastructure management, engineering and R&D and business process outsourcing (BPO).

‘HCL Technologies Limited,’ the company went public on 10 November 1999. The book built portion of the issue was oversubscribed 27 times. According to a company release, the total demand for the IPO touched Rs 20,100 crore. The issue price was set at Rs 580, which is the upper limit of the indicative price band of Rs 500-580.

The IPO was offered to the retail investors through the book building process through the national network of The National Stock Exchange (NSE) and The Stock Exchange, Mumbai (BSE). The release said that the gross proceeds of the Book Built Portion comprising 12,780,000 shares amount to Rs 741.24 crore

THE BELOW CHART SHOWS THE STOCK PERFORMANCE SINCE ITS IPO

 

  1. NHPC:

NHPC Limited (National Hydroelectric Power Corporation) is an Indian Hydropower generation company that was incorporated in the year 1975 with an authorized capital of Rs. 2000 million and with an objective to plan, promote and organize an integrated and efficient development of hydroelectric power in all aspects.

Later on, NHPC expanded its objects to include other sources of energy like Solar, Geothermal, Tidal, Wind etc. At present, NHPC is a Mini Ratna Category-I Enterprise of the Govt. of India with an authorized share capital of Rs. 1,50,000 Million .

The government had fixed a price of Rs 36 a share for the allotment of shares in the initial public offer of NHPC, thus raising Rs 6,048 crore, of which one-third went to the Centre as disinvestment proceeds and the rest remained with the hydro power utility PSU.

According to the power ministry sources, the group of ministers had decided to allot shares at the upper limit of the price band of Rs 30-36 a share. The IPO closed on August 12 with more than 23 times over-subscription.

NHPC was listed in National Stock Exchange and Bombay Stock Exchange on September 1, 2009. The Government of India and State Governments have 86.36% share as a promoter of the Company while remaining 13.64% is public shareholding.

THE BELOW CHART SHOWS THE STOCK PERFORMANCE SINCE ITS IPO

 

  1. NTPC:

NTPC Limited (previously known as National Thermal Power Corporation Limited) is an Indian PSU Public Sector Undertaking, engaged in the business of generation of electricity and allied activities. It is a company incorporated under the Companies Act 1956 and a “Government Company” within the meaning of the act. The headquarters of the company is situated in New Delhi.

In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as a fresh issue and 5.25% as an offer for sale by Government of India. NTPC thus became a listed company in November 2004 with the government holding 89.5% of the equity share capital. The rest is held by Institutional Investors and the Public. The issue was a resounding success.

In Sep. 2015, Government of India held around 74.96% equity shares in NTPC. Over 680,000 individual shareholders hold approx. 1.92% of its shares.Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 10.03% shareholding.

In February 2016, the GOI divested further its 5% stake in NTPC through OFS (Stock Exchange Mechanism) and reduced the holding of GOI in NTPC to 5,76,83,41,760 shares i.e. 69.96% out of total 8,24,54,64,400 shares.

The balance is held by public, FIIs, Mutual Funds and Banks.

 

THE BELOW CHART SHOWS THE STOCK PERFORMANCE SINCE ITS IPO

 

  1. CAIRN INDIA:

Cairn India is an Indian oil and gas exploration and production company, headquartered in Gurgaon, India. It is a subsidiary of Vedanta Resources. Cairn India is one of the largest independent oil and gas exploration and production companies in India. Cairn and its JV partners account for more than a fifth of India’s domestic crude oil production. It has been operating in India for more than fifteen years.

Cairn India IPO was launched by the parent company Cairn Energy PLC. The Cairn India IPO was issued to fund the establishment of the Cairn India Ltd – the Indian arm of the Cairn Energy PLC and which owns 69.5% holding in Cairn India.

The issue was introduced in the market during January 2007. The offer price of the Cairn India IPO was fixed at Rs 160 per Cairn India share by a book-building exercise. This helped Cairn India to reach a market capitalization of Rs 28,245 crores and it included around US$ 600 million of the gross proceeds to be retained by the Indian arm.

Cairn India IPO raised a corpus of Rs 8,616 crores. The gross proceed that was retained by Cairn India, was around Rs 2,681 crores. The shares of the Cairn India were listed on the Bombay Stock Exchange and the National Stock Exchange of India.

 

  1. TATA CONSULTANCY SERVICES:

Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) service, consulting and business solutions company headquartered in Mumbai, Maharashtra. It is a subsidiary of the Tata Group and operates in 46 countries. TCS is one of the largest Indian companies by market capitalization ($80 billion).

The Tata Consultancy IPO or the issue of Tata Consultancy Services Ltd. (TCS), which was launched in the second half of 2004, was the largest IPO in the history of the Indian financial market. The Tata Consultancy IPO was subscribed 3.4 times against the issue size of Rs 4991 crores.

The issue accumulated around Rs.20,000 crores from the primary market. The issue allotted for the Qualified Institutional Investors (QIBs) was oversubscribed by 5.5 times. The Tata Consultancy IPO received 2.5 lakh applications from the retail investors initially and the number soared later and the average bid price was Rs 835 for the retail applications.

THE BELOW CHART SHOWS THE STOCK PERFORMANCE SINCE ITS IPO



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