IPO

2020 IPO Performance in India: Detailed Analysis

The stock market has closed for 2020. It is now time to review the year and analyze the performance of 2020 IPO’s in India.

There were 40 new companies that were listed on Bombay Stock Exchange and National Stock Exchange this year.

To keep this article short, we will only cover the major IPO’s of 2020.

IPO 2020 Performance

CompanyIPO
Price
2020-End
Price
GainListing Date
Route Mobile3501099214%Sep 21 2020
Burger King60175192%Dec 14 2020
Rossari Biotech425936120%Jul 23 2020
Happiest Minds166344107%Sep 17 2020
Mrs Bectors28851479%Dec 24 2020
Gland Pharma1500234056%Nov 20 2020
Mazagon Dock14521850%Oct 12 2020
CAMS1230181848%Oct 1 2020
Chemcon34049947%Oct 1 2020
Likhitha Infra12016437%Oct 15 2020
Mindspace27532116.60%Aug 7 2020
Equitas SFB3337.513.60%Nov 2 2020
SBI Cards75585112.70%Mar 16 2020
Angel Broking30633810.50%Oct 5 2020
UTI AMC5545560.36%Oct 12 2020

It has been a very difficult year to get allotment in IPOs. But for the purpose of analyzing the performance – what if you were lucky enough to get 1 lot of each IPO you subscribed to.

How much money would you earn or lose at the end of 2020?

Let’s analyze the IPO performance:

CompanySharesCost for 1
IPO lot
2020-end
Value
Route Mobile4014,00043,960
Burger King25015,00043,750
Rossari Biotech3514,87532,760
Happiest Minds9014,94030,960
Mrs Bectors5014,40025,700
Gland Pharma1015,00023,400
Mazagon Dock10314,93522,454
CAMS1214,76021,816
Chemcon4414,96021,956
Likhitha Infra12515,00020,500
Mindspace20055,00064,200
Equitas SFB45014,85016,875
SBI Cards1914,34516,169
Angel Broking4914,99416,562
UTI AMC2714,95815,012
Total₹ 2,62,017₹ 4,16,074

As you can see from the table above – 2.62 lakh invested in all the IPO’s of 2020 would be valued at ₹ 4.16 lakh at the end of the year 2020. That is, gains of nearly 59%.

Route Mobile IPO

Route Mobile
  • IPO Price: ₹ 350 per share
  • IPO Subscription: 73 times
  • Listing Date: September 21st 2020
  • Closing Price on Listing Day: ₹ 651
  • Market Price on 31st December 2020: ₹ 1099
  • Gain from IPO Price: 214%
  • Gain from Listing Day Closing: 69%

Route Mobile was founded in 2004 and in its first few years of operation, the company used to provide SMS services. As the company grew, they expanded into automated service providers – which includes OTP or transactional messages you receive on your mobile phone, and other smart communication services in Voice and Email.

The company claims to operate from more than 18 countries around the world and provides service to more than 30,000 clients.

Read more about the company here.

After getting an excellent response for its IPO, Route Mobile gave more than 100% returns on the day it was listed. The stock price dropped during the day of its listing and closed at ₹ 651 per share.

Since then, the stock has been consistently in an uptrend – closing 2020 at market price of ₹ 1099 per share.

Burger King India IPO

Burger King India
  • IPO Price: ₹ 60 per share
  • IPO Subscription: 157 times
  • Listing Date: December 14th 2020
  • Closing Price on Listing Day: ₹ 138
  • Market Price on 31st December 2020: ₹ 175
  • Gain from IPO Price: 192%
  • Gain from Listing Day Closing: 27%

Burger King belongs to the QSR category of restaurants – which has other companies like Jubilant FoodWorks (Domino’s) and Westlife Development (McDonald’s)

It was one of the most-hyped IPO’s of 2020. Everyone wanted to subscribe to the Burger King IPO, especially retail investors.

Since the company is loss-making, only 10% of the IPO was reserved for retail investors.

The demand for the IPO was excellent and listing gains were outstanding.

But what followed was sheer madness. A day after its listing, the stock price of Burger King started hitting upper circuits of 20%. The price rallied till ₹ 219.15 per share, after which it started crashing with lower circuits.

After a few days of circuits, the stock price has now settled at ₹ 175 per share.

Rossari Biotech IPO

Rossari Biotech
  • IPO Price: ₹ 425 per share
  • IPO Subscription: 79 times
  • Listing Date: July 23rd 2020
  • Closing Price on Listing Day: ₹ 742
  • Market Price on 31st December 2020: ₹ 939
  • Gain from IPO Price: 121%
  • Gain from Listing Day Closing: 27%

Rossari Biotech is a manufacturer of textiles specialty chemicals. It provides customized solutions to the apparel, animal & poultry feed, and FMCG industries. The company operates in 18 countries including India, Bangladesh, Vietnam and Mauritius.

Happiest Minds Technologies IPO

Happiest Minds Technologies
  • IPO Price: ₹ 166 per share
  • IPO Subscription: 151 times
  • Listing Date: September 27th 2020
  • Closing Price on Listing Day: ₹ 371
  • Market Price on 31st December 2020: ₹ 343
  • Gain from IPO Price: 107%
  • Gain from Listing Day Closing: -7.4%

One of the reasons Happiest Minds generated the kind of hype it did, was because of its founder Ashok Soota – who served as the President of Wipro between 1984 to 1999 and then co-founded a successful IT company like Mindtree.

The IPO was over-subscribed 151 times. The listing gain was more than 100% – but those who bought shares of the company on the day it got listed, would be in notional loss of around 7.5% right now.

Mrs Bectors Food Specialities IPO

Mrs Bectors Food Specialities
  • IPO Price: ₹ 288 per share
  • IPO Subscription: 198 times
  • Listing Date: December 24th 2020
  • Closing Price on Listing Day: ₹ 596
  • Market Price on 31st December 2020: ₹ 514
  • Gain from IPO Price: 78%
  • Gain from Listing Day Close: -13.7%

The IPO of ‘Mrs Bectors’ came immediately after the hype created by ‘Burger King’. The story of its founder, Mrs Rajni Bector, was found to be inspiring too.

The company makes biscuits, burger buns and various kinds of spreads and sauces.

The IPO was subscribed 198 times and listing gains were pretty much guaranteed.

On the day of listing, the shares of Mrs Bectors gave more than 100% returns to its IPO investors.

Stock prices dropped after the IPO, closing the year at ₹ 514 per share. Returns for those who got allotment in the IPO was excellent, but those who bought the shares on listing day haven’t made any money.

Gland Pharma IPO

Gland Pharma
  • IPO Price: ₹ 1500 per share
  • IPO Subscription: 2 times
  • Listing Date: November 20th 2020
  • Closing Price on Listing Day: ₹ 1820
  • Market Price on 31st December 2020: ₹ 2340
  • Gain from IPO Price: 56.02%
  • Gain from Listing Day Close: 28.59%

Established in Hyderabad in 1978, Gland Pharma has grown over the years from a contract manufacturer of small volume liquid parenteral products, to become one of the largest injectable-focused companies. It has a global footprint across 60 countries, including the United States, Europe, Canada, Australia, India and other markets.

The IPO of Gland Pharma did not attract the kind of interest like other IPO’s in 2020, but the story was different after listing.

Listing day gains were excellent, but the fundamentally-strong company continued its rise – closing the year at ₹ 2340 per share – a gain of 56% over its IPO price.

Mazagon Dock IPO

Mazagon Dock Shipbuilders
  • IPO Price: ₹ 145 per share
  • IPO Subscription: 157 times
  • Listing Date: October 12th 2020
  • Closing Price on Listing Day: ₹ 172
  • Market Price on 31st December 2020: ₹ 218
  • Gain from IPO Price: 50.41%
  • Gain from Listing Day Close: 26.80%

Mazagon Dock is a PSU-company which specializes in the construction of warships and submarines – which are required by the defense for the safety and security of the nation.

The IPO garnered tremendous interest as it was coming at a time when the market was in a bull-run. The IPO was subscribed 157 times, the listing gain was decent compared to other IPOs this year – but the stock has continued its upward trend, closing the year 50% above its IPO price.

CAMS IPO

CAMS Computer Age Management Services
  • IPO Price: ₹ 1230 per share
  • IPO Subscription: 47 times
  • Listing Date: October 1st 2020
  • Closing Price on Listing Day: ₹ 1402
  • Market Price on 31st December 2020: ₹ 1818
  • Gain from IPO Price: 47.80%
  • Gain from Listing Day Close: 29.67%

CAMS or ‘Computer Age Management Services’ is another one of those fundamentally strong companies that was listed this year. CAMS is a mutual fund transfer agency to the Asset Management Companies in India. It has a market share of more than 70%.

The popular ‘myCAMS Mutual Fund App’, which has more than 1 million downloads on the Google Play Store, also belongs to the company.

The IPO of CAMS was subscribed 47 times. It gave decent listing gains, but more importantly, continued to rise steadily in the remaining days of 2020.

Chemcon Speciality Chemicals IPO

Chemcon Speciality Chemicals
  • IPO Price: ₹ 340 per share
  • IPO Subscription: 149 times
  • Listing Date: October 1st 2020
  • Closing Price on Listing Day: ₹ 585
  • Market Price on 31st December 2020: ₹ 499
  • Gain from IPO Price: 46.74%
  • Gain from Listing Day Close: -14.72%

Chemcon Chemicals is a leading manufacturer of Pharmaceutical chemicals and generates most of its revenue from this segment. Hetero Labs, Laurus Labs, Aurobindo Pharma, Lantech Pharmaceuticals, Macleods Pharma are the key customers of its Pharma chemical business.

Interest for the IPO was tremendous. It was over-subscribed nearly 150 times. Listing gains were excellent too, but those who bought shares of the company on the listing day – would have incurred losses.

Likhitha Infrastructure IPO

Likhitha Infra
  • IPO Price: ₹ 120 per share
  • IPO Subscription: 9.5 times
  • Listing Date: October 15th 2020
  • Closing Price on Listing Day: ₹ 137
  • Market Price on 31st December 2020: ₹ 164
  • Gain from IPO Price: 36.79%
  • Gain from Listing Day Close: 19.82%

Likhitha Infra is an oil and gas pipeline infrastructure service provider in India.

The IPO was subscribed nearly 10 times. The listing gains were decent, and the stock price has continued to rise. 

Mindspace Business Parks REIT IPO

Mindspace Business Parks
  • IPO Price: ₹ 275 per share
  • IPO Subscription: 13 times
  • Listing Date: August 7th 2020
  • Closing Price on Listing Day: ₹ 304
  • Market Price on 31st December 2020: ₹ 321
  • Gain from IPO Price: 16.66%
  • Gain from Listing Day Close: 5.53%

Mindspace Business Parks is a REIT business. The company has a portfolio of 5 integrated business parks which provide superior infrastructure and amenities for its clients. Mindspace has a well-diversified business with more than 170 clients – including several multi-national companies.

The IPO of Mindspace was over-subscribed by 13 times. Listing gains were around 10%, and the year ended with the stock price rising nearly 17% above its IPO price of 275.

Equitas Small Finance Bank IPO

Equitas Small Finance Bank
  • IPO Price: ₹ 33 per share
  • IPO Subscription: 2 times
  • Listing Date: November 2nd 2020
  • Closing Price on Listing Day: ₹ 33
  • Market Price on 31st December 2020: ₹ 37.5
  • Gain from IPO Price: 13.64%
  • Gain from Listing Day Close: 13.64%

Equitas Small Finance Bank is a small finance bank founded in 2007 by Equitas as a microfinance lender. The headquarters of the company is in Chennai. Equitas began banking on 5 September 2016 as a subsidiary of its holding company Equitas Holdings.

The response to the IPO was lukewarm. It was oversubscribed 2 times. Those who were hoping for listing gains were disappointed, as the stock listed below its IPO price in the morning. On the listing day, the price closed at ₹ 33 which was the same as its IPO price.

Year-end prices were about 14% higher.

SBI Cards IPO

SBI Cards
  • IPO Price: ₹ 755 per share
  • IPO Subscription: 27 times
  • Listing Date: March 16th 2020
  • Closing Price on Listing Day: ₹ 681
  • Market Price on 31st December 2020: ₹ 851
  • Gain from IPO Price: 12.70%
  • Gain from Listing Day Close: 24.95%

HDFC Bank is the leader in the Credit Card business in India. SBI Cards comes second with a market-share of 18%.

It was the most hyped IPO of 2020. But the timing of the listing, unfortunately, coincided with the global stock market crash in March 2020.

The shares listed at a discount of nearly 10% and continued to crash in April and May. It touched a low of ₹ 495 in May, before it began its upward trend June onwards.

Those who bought shares during the fall have earned excellent notional gains. The rest who were patient enough were rewarded as the share price closed 13% above its IPO price at the end of 2020.

Angel Broking IPO

Angel Broking
  • IPO Price: ₹ 306 per share
  • IPO Subscription: 4 times
  • Listing Date: October 5th 2020
  • Closing Price on Listing Day: ₹ 276
  • Market Price on 31st December 2020: ₹ 338
  • Gain from IPO Price: 10.46%
  • Gain from Listing Day Close: 22.46%

Angel Broking is currently the 4th largest broker in India. It’s behind Zerodha, Upstox and ICICI Direct – in terms of active clients.

Interest for the IPO wasn’t great, even though it was over-subscribed 4 times. The listing was disappointing too, with the stock price of the company opening below the IPO price and closing at 10% discount.

However, we are currently in a bull market. All stocks are going up. Angel Broking was no different, as the share price closed 10% above its IPO price at the end of 2020.

UTI AMC IPO

UTI AMC
  • IPO Price: ₹ 554 per share
  • IPO Subscription: 2.3 times
  • Listing Date: October 12th 2020
  • Closing Price on Listing Day: ₹ 476
  • Market Price on 31st December 2020: ₹ 556
  • Gain from IPO Price: 0.36%
  • Gain from Listing Day Close: 16.81%

UTI AMC is the largest asset management company in India in terms of Total AUM (assets under management). It is the 7th largest AMC in India in terms of mutual fund quarterly-averaged AUM.

Response for the IPO was dull. Listing day was poor, as the stock price closed more than 15% below its IPO price. However, if an investor bought on the listing day at the discounted price – he would have earned gains by the end of the year.

Overall, 2020 was a good year for IPOs. 2021 has many more exciting companies that are scheduled to list at the stock market. The list will be published very soon. Keep visiting for updates.

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