The IPO road to wealth: Successful IPOs propel entrepreneurs into the rich list

• Public market debuts of companies and their stellar listing gains became a wealth creator in 2023.
• Eight entrepreneurs whose stocks listed in the last one year entered the Hurun India Rich list.
• Some IPOs that stumbled last year like Zomato and PB Fintech also made a comeback.

The IPO market has been shining for the last one year with stellar debuts and listing gains. That created wealth for its investors and the entrepreneurs alike. Many of whom entered the 360 ONE Wealth Hurun India Rich List 2023.

The rich list launched by Hurun in partnership with 360 ONE wealth has some insights into how successful IPOs propelled some names into the Hurun India Rich List.

Ramesh Kunhikannan secured a spot in the 360 ONE Wealth Hurun India Rich List 2023 with ₹8,200 crore in wealth, thanks to Kaynes Technology's strong stock market debut. The Mysore-based company rose by 32.5%, on the back of integrated electronics manufacturing and Electronics System Design and Manufacturing (ESDM), including IoT solutions.

At the age of 83, Jagdish Prasad Chowdhary entered the list with ₹4,800 crore in wealth, courtesy the successful IPO of Titagarh Wagons, a leading private sector wagon manufacturer in India.

At 49, Ranjit Pendurthi made his debut with ₹4,700 crore in wealth, driven by the oversubscribed 32-times IPO of Archean Chemical Industries, a specialty chemicals manufacturer.

Ajay P Thakker & family made their debut with ₹3,000 crore in wealth, backed by the stock market debut of Jupiter Life Line Hospitals, a multi-specialty hospital chain.

Electronics Mart India had a strong debut with a 52% premium, fueled by a 72-fold subscription rate for its public issue. As a result, the promoters, Pavan Kumar Bajaj and Karan Bajaj, secured spots on the 360 ONE Wealth Hurun India Rich List 2023 with individual net worths of ₹2,400 crore and ₹2,300 crore, respectively.

Harsha Engineers International's impressive IPO led to the debut of Harish Rangwala and Rajendra Shantilal Shah in the Hurun rich list, both accumulating ₹1,700 crore in individual wealth.

The stock market in general has been rewarding in the last one year. The cumulative wealth of 1,319 individuals in the list increased by 8.5%.

“The BSE Capital index achieved an all-time high, with a remarkable 40% return during the review year. This surge was primarily driven by heightened government spending on infrastructure projects, propelling the industrial products sector to outperform,” said Anas Rahman Junaid, MD and Chief Researcher, Hurun India.

“The industrial products sector emerged as the top performer, welcoming 33 new entrepreneurs and witnessing a staggering 87% increase in cumulative wealth compared to the previous year,” he added.

While the Junejas of Mankind Pharma were already in the list last year, its stellar public debut also pushed up their wealth considerably. Two sets of promoters of the company Ramesh Juneja & family and Rajeev Juneja and family saw their wealth swell 107% each in the last year.

IPOs make a comeback

According to the report, startup founders on the list experienced a collective wealth dip of ₹85,000 crore.

“However, amidst these challenges, there is optimism as some IPOs that stumbled last year are making a comeback. Notably, entrepreneurs like Deepinder Goyal of Zomato and Yashish Dahiya of PB Fintech have seen their wealth increase by over 70%, suggesting that startup wealth creation will persist, albeit within a changing landscape,” says the report.

Apart from four companies, every IPO listed in this financial year has resulted in positive listing gains. Out of the 29 IPOs, only seven have produced single-digit listing gains, while the majority have delivered double-digit listing gains.