Avg listing gains in FY22 at 26%, reflects appetite for IPOs

New Delhi, March 17

Those companies that got listed in FY22 (till December) witnessed an average of 26.2 per cent listing day gains, according to a KPMG report.

Of the total 44 companies listed during the period, 17 companies returned standalone more than 25 per cent on their debut trading session.

In terms of subscription to initial public offerings IPOs, 44 IPOs till December of FY22 witnessed an average over-subscription of 54.9 times.

"In 9M FY22, majority of the funds raised were used for capital expansion plans, indicating the optimism of economic revival in the mindset of India Inc. An increasing trend in use of funds for debt repayment, is visible over the three years," it said in the report themed 'IPOs during a global pandemic'.

In the entire FY21, the 26 companies which made their debut on the exchanges returned an average of 36.2 per cent on listing day.

"Four out of the 26 companies listed at a premium in excess of 100 per cent, in FY21, compared to one in FY20 and three in 9M FY22," the report said.

"While less than half of the IPOs in 9M FY22 witnessed a listing day premium of more than 20 per cent, FY21 had half of the IPOs and FY20 had 43 per cent of the IPOs generating the same level of return."

The report further said the performance of IPOs reflects the stability in post-listing appetite among investors across the three financial years, despite having been hit by the Covid pandemic.