2023 IPO Frenzy: India Takes Global IPO Crown; Tata Tech Best Listing, Plaza Wires Most Subscribed

In a year dominated by Initial Public Offerings (IPOs), 2023 has proven to be a boon for investors, with a staggering 90 out of 105 public issues delivering positive returns. The most highligted IPOs were Mankind Pharma, Netweb Tech, Tata Technologies, RR Kabel, and Concord Biotech. However, stealing the spotlight as the Best IPO of 2023 is Plaza Wires, setting records with a subscription rate of 161 times, a 49% premium on the listing, and an impressive 90% gain from the issue price.

The Plaza Wires IPO, priced at Rs 54 per share, debuted on the exchanges at Rs 76 per share, with an issue size of Rs 71.30 crores. Currently, it continues to trade at a remarkable 90% above its issue price, making it the star of this year's IPO frenzy.

Securing the second position is IdeaForge, boasting a subscription rate of 106 times, a listing premium of 93%, and a current gain of nearly 20% from the issue price. With an issue size of Rs 567 crores and an issue price of Rs 672 per share, IdeaForge has become a favourite among investors, offering substantial returns since its listing at Rs 1,300 per share.

Utkarsh Small Finance Bank follows closely, subscribed 101.9 times, listing with a 92% premium, and currently trading with gains of 106% from the issue price. Investors who jumped on board at the IPO price of Rs 25 per share and witnessed its debut at Rs 40 per share have seen their investments soar.

Continuing down the impressive lineup of 2023's standout Initial Public Offerings (IPOs), Aeroflex Industries takes the spotlight as the fourth in the rankings. Subscribed a remarkable 97.1 times, this IPO listed with a premium of 51%, hitting the exchanges at Rs 190 per share, a significant leap from its issue price of Rs 108 per share. Investors who got on board have been rewarded handsomely, with current gains exceeding 40%. The issue size for Aeroflex Industries stood at a substantial Rs 351 crores.

Sliding into the fifth position is Ratnaveer Precision, having garnered a subscription rate of 94 times. This IPO listed with a premium of 32%, debuting on the exchanges at Rs 123.20 per share, a notable increase from its issue price of Rs 98 per share. Investors in Ratnaveer Precision are currently enjoying gains of more than 20%, with the issue size set at Rs 165 crores.

Following closely is Netweb Technologies, which secured an impressive subscription rate of 90.4 times. Listing with a premium of 82.1%, this IPO made a striking debut on the exchanges at Rs 947 per share, soaring from its issue price of Rs 500 per share. Investors who seized the opportunity are currently witnessing gains of over 160%. The issue size for Netweb Technologies amounted to Rs 631 crores.

Vishnu Prakash R Punglia grabs the seventh spot, having achieved a subscription rate of 87.8 times. Listed with a premium of 47.2%, this IPO hit the exchanges at Rs 165 per share, surpassing its issue price of Rs 99 per share. Investors in Vishnu Prakash R Punglia are enjoying gains of more than 123%, with the issue size set at Rs 308.90 crores.

Continuing the impressive lineup is Tata Technologies, which garnered a subscription rate of 69.4 times. Listing with an extraordinary premium of 163%, this IPO made waves by debuting on the exchanges at Rs 1,200 per share, significantly higher than its issue price of Rs 500 per share. Investors are currently reaping gains of nearly 150%, with the issue size standing at a massive Rs 3,042 crores.

Cyient DLM takes the penultimate spot, having been subscribed 67.3 times. Listed with a premium of nearly 60%, this IPO hit the exchanges at Rs 403 per share, a substantial increase from its issue price of Rs 265 per share. Investors in Cyient DLM are witnessing gains of more than 150%, with the issue size reaching Rs 592 crores.

In the tenth position is IKIO Lighting, securing a subscription rate of 66.3 times. Listed with a premium of 41.7%, this IPO debuted on the exchanges at Rs 392.50 per share, surpassing its issue price of Rs 285 per share. Investors in IKIO Lighting are currently enjoying gains of 22%, with the issue size reaching Rs 607 crores.

Aeroflex Industries garnered the highest number of applications at 27,68,343, while Plaza Wires Limited led subscriptions overall, an impressive 160.97 times, including staggering figures for both retail and HNI subscriptions.

Manish Chowdhury, Head of Research at StoxBox, predicts that the IPO rush will continue into 2024, fueled by a positive equity outlook and strong retail participation. While specific names are yet to be determined, potential candidates include Ola Electric, EbixCash, Navi Technologies, Wellness Forever, and Tata Play.

In November, the primary market witnessed bumper listings, including Tata Technologies and Gandhar Oil Refinery, keeping investors engaged with subscriptions and listings. According to an EY report, India has emerged as the global leader in the number of IPOs year-to-date in 2023, with a remarkable 21 IPOs in the Indian main market during the third quarter alone.

However, the global IPO market saw a shift in landscape in 2023, with improved Western market sentiment offset by China's cool-down as per an EY report. The global IPO market closed the year with 1,298 IPOs raising US$123.2 billion, lagging behind 2022's pace but showing increased deal volumes in the Americas and EMEIA.

Despite a strong equity market rally and low volatility, public offerings remained muted in many developed markets, largely due to aggressive monetary policies. The expectation of interest rate reductions in the face of easing global inflation is anticipated to boost investor confidence in IPOs, potentially revitalizing IPO activity.

The year also witnessed emerging IPO hotspot markets outpacing traditional powerhouses, with Indonesia, Malaysia, and Turkey seeing increases in deal volume and proceeds. Meanwhile, India, Saudi Arabia, and Thailand recorded an uptick in the number of IPOs. In contrast, Hong Kong's IPO market experienced a 20-year low in proceeds, and Mainland China saw a slowdown in IPO issuance in the latter half of 2023.

As the curtain falls on the remarkable year of IPOs, these outstanding performers have not only attracted massive investor interest but have also delivered substantial returns, highlighting the dynamism and resilience of the IPO market in 2023. Investors, both institutional and retail, are now eagerly looking ahead to 2024, with hopes of more promising opportunities considering that multiple companies are rushing to be listed before the General elections of 2024.