To have a brand involved in a lot of things takes a ton of effort. Every company, big or small, expects their company to attract the right kind of investors, effective marketing heads, and suitable employees with the required skill sets they want. After all, running a company is a whole different and more demanding task than owning a company. And having the trustable pillars from investors to employees allows a company to venture into the ultimate thing, i.e., IPO (Initial Public Offering).
IPO refers to the process where an existing or a new company without any shares listed on the stock exchange decides to allow the public to buy its shares. With the sale of the claims, the company collects a capital gain that it usually uses to set up its infrastructures and pay its debts or loan. 2021 has seen several IPOs listing gains that augur well for the future of the stock market. However, there were five who completely dominated the listing gains in this year.
Top 5 IPOs with the Highest Listing Gains in 2021
The following list displays the top 5 IPOs that either doubled or nearly doubled the investors' money on IPO listing gains recently. As per the experts, there is a sizable substantial frenzy in the IPO market with some of the biggest Indian IPO Filing in a decade. Also, for the first time in history, many IPOs have lined up to get themselves listed. Also, apart from the number of companies making their IPOs, there is a subscription-based interest too. The recent Zomato IPO shows it well. So, let's have a look at the top five below one by one.
1. Happiest Minds Technologies (111 percent)
Happiest Mind Technologies is a Bangalore-based digital transformation IT consulting and services company. This company is founded and led by Ashok Soota, who also happens to be the co-founder of Mindtree. The company listed its IPO in 2020 at a premium of 111 percent on BSE on 17th September 2020. The IPO listing gains more than doubled the investors' money at Rs.351 compared to the issue price of Rs.166. Also, by the end of the day, its stocks closed at Rs.371 that enabled combined trading volumes to surpass the total issue size of 42.2m equity shares. Even the company issue was subscribed 151 times, making it the 8th highest in the last decade.
2. Burger King (95 percent)
Burger King has our heart tucked in one string with all its offerings, thanks to our cravings. As a result, this QSR (Quick Restaurant Service) company has been packing an enormous listing gain this year. Having debuted in the stock market on 14th December 2021 at Rs.115.4 per share on BSE, the company has nearly doubled the investors' money by listing at a premium of 92 percent gains. The stock of this fast-growing Quick Restaurant Service further continued to rise throughout to finally close at an unbelievable 130.7 percent jump from its issued price at Rs.138.4. Also, its 156 times subscriptions made it the second most subscribed IPO of 2020.
3. MTAR Technologies (85 percent)
The third IPO on the list is MTAR Technologies. It is a Hyderabad-based company that offers manufacturing solutions and specializes in advanced machining, assembling and testing, heat treatment, and fabrication. The company had a starry debut on 15th March 2021 when it was listed at Rs.1063.9 per share on BSE. What makes this starry is its rise of 85 percent from the issue price of Rs.575. Furthermore, the Rs.6 billion IPO of the company closed the day at Rs.1082.3 after peaking at Rs.1154 in its first hour of trading itself. The MTAR Technologies IPO even put up a whooping subscription issue high by 200 times.
4. Indigo Paints (75 percent)
Indigo Paints is an Indian paint company headquartered in Pune, Maharashtra. The company had a noticeable debut when it was listed at a premium of 75 percent increase from its issued price of Rs.1490. As a result, its scrip got listed at Rs.2607 per piece on BSE. Later in the day, the IPO finally closed at Rs.3118 after a sudden stock surge of over 20 percent of the listing price. The Indigo Paints IPO performed from 20th to 22nd January this year before its debut on 2nd February.
Despite being a late entrant in the Indian paint market, the company is now listed as the fifth-largest decorative paints manufacturer in India. It now boasts a 2 percent market share across the country and was subscribed 117 times.
5. Mrs. Bector's Food (74 percent)
Mrs. Bector's Food is one of the leading companies in the Indian biscuit and bakery industry. It dominates the premium and mid-premium biscuits and bakery segments in India, especially North India. Its IPO debuted on the 23rd December 2020, where it was listed at a premium of 74 percent gains over the issue price of Rs. 288. As a result, its share price opened at Rs.501 apiece on BSE. It was a massive gain of Rs.213 over the issue price. The company closed its listed price at Rs.595.6 per share after having peaked at Rs.601.2 momentarily. The IPO listing happened on the expected lines as per the investors' expectations.
The company raised Rs.5.4 billion through its IPO sale, where it was subscribed 198 times, thus making it the highest subscribed listing of 2020.
To Invest or to Not Invest in an IPO?
With all the hustling happening on the IPO for listing gains, there will be a question that many of you may have. Whether to invest in an IPO for listing gains or not? A common motivation behind this would be an opportunity to make quick sizable returns by investing in the company's share. Well, the idea isn't a new one, which there is no guarantee that you will make again as everything is dependent on the demand for the IPO, global factors, market sentiment, and short-term look, etc. But this does also explains the reasons for IPO rush in 2021 as well.
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