Blockbuster year for IPOs: Out of 60 stocks, 57 closed higher than the IPO price in 2023

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The year 2023 was a remarkable one for the Indian stock market, as it witnessed a record number of initial public offerings (IPOs) from various sectors. Out of the 60 companies that went public, 57 closed higher than their issue price by the end of 2023, giving handsome returns to the investors.

Blockbuster year for IPOs Out of 60 stocks, 57 closed higher than the IPO price in 2023
Blockbuster year for IPOs Out of 60 stocks, 57 closed higher than the IPO price in 2023

Among all the initial public offerings (IPOs) in 2023, the Indian Renewable Energy Development Agency (IREDA) IPO stood out as the top performer, delivering an impressive return of 220% from its initial issue price.

The Muthoot Microfin IPO earned the dubious distinction of being the worst-performing IPO on the market in 2023, experiencing a loss of 15% from its issue price.

Consider reading: IREDA Share Price Target

Details of IPOs in 2023 and their returns

Company NameListing Day GainReturn Since Listing DayReturn from Issue Price
Indian Renewable Energy Development Agency88.00%71.00%221.00%
Cyient DLM59.00%60.00%155.00%
Netweb Technologies India82.00%30.00%138.00%
Tata Technologies163.00%-10.00%136.00%
SignatureGlobal India19.00%91.00%128.00%
Senco Gold28.00%72.00%120.00%
Vishnu Prakash R Punglia47.40%48.00%118.00%
Utkarsh Small Finance Bank92.00%12.00%115.00%
Concord Biotech27.00%56.00%99.00%
Sah Polymers37.00%42.00%95.00%
Plaza Wires49.00%25.00%86.00%
Mankind Pharma32.00%39.00%84.00%
Motisons Jewellers84.00%-3.00%79.00%
JSW Infrastructure32.00%32.00%75.00%
Divgi TorqTransfer Systems3.00%62.00%66.00%
Gandhar Oil Refinery (India)78.00%-10.00%62.00%
DOMS Industries69.00%-6.00%58.00%
SBFC Finance62.00%-3.00%57.00%
R R Kabel16.00%31.00%52.00%
Protean eGov Technologies12.00%36.00%52.00%
Jupiter Life Line Hospitals46.00%1.00%48.00%
Manoj Vaibhav Gems ‘N’ Jewellers0.30%48.00%48.00%
HMA Agro Industries0.00%44.00%44.00%
Aeroflex Industries51.00%-5.00%44.00%
Honasa Consumer4.00%31.00%36.00%
Nexus Select Trust4.00%30.00%36.00%
Zaggle Prepaid Ocean Services-4.00%41.00%36.00%
Inox India42.00%-6.00%34.00%
Rishabh Instruments0.40%32.00%32.00%
SAMHI Hotels14.00%16.00%32.00%
Azad Engineering29.00%2.00%32.00%
Global Surfaces22.00%5.00%29.00%
Avalon Technologies-9.00%39.00%26.00%
Yatharth Hospital & Trauma Care Services0.00%26.00%26.00%
Sai Silks (Kalamandir)10.00%12.00%24.00%
Valiant Laboratories21.00%3.00%24.00%
ideaForge Technology93.00%-36.00%24.00%
Cello World22.00%-1.00%22.00%
Happy Forgings21.00%0.00%21.00%
lnnova Captab22.00%-1.00%21.00%
Ratnaveer Precision Engineering37.00%-14.00%18.00%
Pyramid TechnoplastS.9%10.00%16.00%
RBZ Jewellers5.00%10.00%16.00%
India Shelter Finance Corporation10.00%5.00%15.00%
Flair Writing Industries49.00%-23.00%15.00%
ESAF Small Finance Bank15.00%-1.00%15.00%
Updater Services-5.00%19.00%12.00%
11(10 Lighting42.00%-21.00%12.00%
Udayshivakumar Infra-10.00%22.00%10.00%
IRM Energy-6.00%14.00%7.00%
Blue Jet Healthcare14.00%-7.00%6.00%
Credo Brands Marketing12.00%-7.00%4.00%
ASK Automotive10.00%-6.00%3.00%
Matra Online-4.00%6.00%2.00%
TVS Supply Chain Solutions2.00%-1.00%0.60%
Fedbank Financial Services0.00%-3.00%-2.80%
Radiant Cash Management Services11.00%-15.00%-5.30%
Suraj Estate Developers-7.00%-1.00%-8.00%
Muthoot Microfin-9.00%-6.00%-14.00%
Details of IPOs in 2023 and their returns

If you applied for any of the IPOs and were fortunate enough to receive an allotment, you would have likely enjoyed decent returns.

Consider reading: INOX India Share Price Target

Top 10 IPOs with Highest Subscription in 2023

Company NameIssue Size (Rs Cr)QIB (x)NII (x)Retail (x)Employee (x)Others (x)Total (x)
Motisons Jewellers Limited151.09135.01311.99135.60173.23
Plaza Wires Limited71.2842.84388.09374.81160.97
Utkarsh Small Finance Bank Limited500.00135.7188.7478.3818.02110.77
ideaForge Technology Limited567.29125.8180.5885.2096.65106.06
DOMS Industries Limited1200.00122.1670.0673.3899.34
Aeroflex Industries Limited351.00194.73126.1334.4128.5297.11
Ratnaveer Precision Engineering Limited165.03133.05135.2154.0093.99
Netweb Technologies India Limited631.00220.6983.2119.4855.9290.55
Vishnu Prakash R Punglia Limited308.88171.69111.0332.0112.9787.82
Azad Engineering Limited740.00179.6490.2424.5183.04
Top 10 IPOs with Highest Subscription in 2023

In 2023, there was a record level of participation in IPOs from various types of investors. Despite the record number of IPOs, they received strong support from investors in terms of subscriptions.

Consider reading: Motisons Jewellers Share Price Target

Anticipated IPOs in 2024

In 2024, the Indian IPO market is expected to continue its robust growth, following a significant increase in public issues in 2023. Here are some key upcoming IPOs:

  1. Ola Electric: Targeting a fundraising range of $700-800 million, Ola Electric‘s IPO is highly anticipated. Despite facing challenges, the company has seen a significant revenue increase, marking its transition to a major player in the electric vehicle industry.
  2. FirstCry: The omnichannel retailer FirstCry plans to raise $500-600 million, with a potential valuation around $4 billion.
  3. Awfis: This flexible workspace solutions provider has filed preliminary documents for an IPO, including a fresh issue of up to ₹160 crore and an Offer for Sale of 1 crore equity shares.
  4. Unicommerce: The e-commerce SaaS company is preparing for an IPO in late 2024.
  5. Aakash (Byju’s subsidiary): Aakash is aiming for an IPO by mid-2024, following a three-fold surge in revenue since its acquisition by Byju’s.
  6. PhonePe: With a $12 billion valuation, PhonePe is eyeing an IPO in 2024-2025, following a $200 million investment from Walmart.
  7. Oyo: The travel-booking platform has delayed its IPO and is now aiming for a $400-600 billion range, primarily for debt repayment.
  8. PharmEasy: After a successful rights issue, PharmEasy is considering an IPO, with Ranjan Pai expected to hold a 15% stake post-rights issue.
  9. Swiggy: Valued at $10.7 billion, Swiggy plans to enter the public market in 2024, following its rival Zomato.
  10. PayU India: A subsidiary of Prosus, PayU India is preparing for an IPO in late 2024, focusing on merchant payments and consumer credit.
  11. MobiKwik: Collaborating with financial advisors, MobiKwik aims to raise about $84 million in its 2024 IPO.

These IPOs reflect a diverse range of industries, from electric vehicles and e-commerce to fintech and edtech, indicating a vibrant and varied market for investors in the coming year.

Final Thoughts on IPOs in 2023

The IPO market in India was on fire in 2023, as investors showed strong appetite for new listings from diverse sectors. The majority of the IPOs delivered stellar gains on the debut day, rewarding the risk-taking investors. The IPO frenzy was driven by several factors, such as favourable market conditions, high liquidity, digital transformation, and strong growth prospects.

However, not all IPOs are created equal, and some of them may face challenges in sustaining their valuations in the long run. Therefore, investors should do their homework and analyse the fundamentals, financials, and growth potential of the companies before investing in IPOs.

The IPO market in 2024 is expected to remain buoyant, as more companies from emerging sectors like edtech, fintech, healthtech, and e-commerce are likely to go public. The IPO market in India is evolving and maturing, and it offers a great opportunity for both entrepreneurs and investors to create wealth and value.

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