IPOs for an investor is an attempt to participate in a stock which has no past history in terms of stock performance but considering fundamentals, business line and its valuation in comparison to the company's peers listed on the exchanges, investors take a buy or investment call.
It is typically said that IPO listing has nothing to do with the fundamentals of the company i.e. if a company lists at a discount that doesn't imply that is weak fundamentally, market momentum also to an extent is responsible for the good or weak listing for the scrip heading on to bourses.
Now as we saw the delivery platform going ahead with its Rs. 9375 crore which is the fourth largest since 2010, here are listed all such IPOs which have been the largest in terms of issue size:
1. Coal India:
The mining and minerals company came up with its IPO in the year 2010 which has been the largest in terms of issue size of Rs. 15,475 crore. The issue price for the IPO was fixed at Rs. 245 per share. The company on listing made good gains by listing at a price of 287.75 and zoomed on an intra-day basis to an high of Rs. 340.
Though the company's stock price has come crashing down to Rs. 147.05, the dividend yield of the stock which currently is at Rs. 10.88% is a big positive for the scrip of Coal India.
2. GIC Re:
The reinsurance company came up with its IPO in 2017 with an aim to aggregate a fund amounting to Rs. 11,373 -IPO size. The issue price for the issue was decided at Rs. 912 and against it the stock made a weak listing. The issue was thrown open for the purpose of augmenting the company's capital base for supporting business growth and maintain current solvency levels as well as for general corporate purposes.
Last the scrip of GIC Re as on July 16, 2021 traded at a price of Rs. 185 per share on the NSE, suggesting steep correction from the issue price.
3. New India Assurance:
The general insurance company opened its Rs. 9600 crore IPO on November 1, 2017 and IPO price band for the issue was pegged between Rs. 770 to Rs. 800. The issue of the company integrated both fresh share issuance as well as OFS of 9.6 crore shares. This insurance scrip also listed at a weak discount of Rs. 750.
New India Assurance as of July 16, 2021 trades at a price of Rs. 165.15 and recorded a 52-week high of Rs. 197 per share.
Next is the new age start up i.e. Zomato widely looked upon food delivery needs. The company's currently IPO offer is currently open to aggregate Rs. 9375 crore. The company has good response with subscription of 18.5 times as on the last bidding day i.e. today. Majorly there is fresh issuance i.e. of Rs. 9000 crore and the rest includes OFS by InfoEdge, the company's biggest promoter group.
The shares with an IPO price band of Rs. 72-76 per share will be listed on July 27, 2021. The funds mopped through the route with be put for both inorganic as well as organic expansion.
5. HDFC Life:
This was another IPO offer thrown open in the year 2017 again by an insurance company of the larger HDFC group. The IPO size of the HDFC Life was Rs. 8,695 crore. The issue was floated on November 7 and got listed on November 17 with good listing gains of over 8% in comparison to the issue price of Rs. 290.
HDFC Life is the only stock from the rest 3 above which is trading higher than the issue price with good gains since listing. Last traded price as on July 16, 2021 is Rs. 699.4, implying gains of 141%.