Bigger they are, harder they fall – A look at how the country’s biggest IPOs have fared

• Hyundai Motor India, the country’s biggest IPO is currently underway.
• Ahead of the company’s listing, we look at how some of the country’s biggest IPOs have performed.
• Five out of six biggest IPOs in the country have listed at a discount.

Hyundai Motor India is raising funds through an IPO, the country’s biggest IPO so far. There have been several large initial public offerings (IPOs) over the years, from the state-owned Life Insurance Corporation of India to the payments platform Paytm. Still, nothing comes close to what Hyundai is looking for.

There have been six IPOs so far in India above the ₹10,000 crore mark and their performance has left a bad taste in the mouth for investors. Five out of the six companies that have raised over ₹10,000 crore from their IPO have listed at a discount, making it difficult for investors to exit.

Hyundai seems to be heading a similar way, as its grey market premium (GMP) has completely eroded, with investors being sceptical about the country’s biggest IPO.

In addition to the huge amount that the company is looking to raise, aspects such as increased competition in the auto sector, poor sales over the past few months and the IPO being an offer for sale (OFS) have impacted the prospects.

In this post, we look at how the biggest IPOs in India’s history have performed so far.

Here’s how India’s biggest IPOs have performed

Life Insurance Corporation of India

State-owned Life Insurance Corporation of India (LIC), which till recently held the title of the biggest IPO in India failed to impress investors. The ₹21,008 crore IPO, which had an upper price band of ₹949 was subscribed 2.95 times. On the listing day, LIC’s shares closed at ₹875.45, at a discount of ₹73.55, giving IPO investors a loss of 7.75%.

Paytm

The IPO of One97 Communications, the parent company of Paytm is one for the history books. The company’s ₹18,300 crore IPO, which had an offer price of ₹2,150 closed at ₹1,564.15 on listing day, ₹585.56 less than the offer price, giving a listing day loss of 27.25%.

Coal India

Coal India is the only exception to the list as it is the only company that opened higher than its offer price, giving investors a profitable exit. The company’s ₹15,199.44 crore IPO was subscribed 15.2 times. Coal India’s shares, which had an offer price of ₹245 closed at ₹342.35 on listing day, at a gain of ₹97.35 to investors, a 39.73% profit.

Reliance Power

Anil Ambani-owned Reliance Power’s ₹11,563.2 crore IPO, which was oversubscribed by 73 times amid much fanfare had a disastrous listing. The company’s share, which had an offer price of ₹450, closed at ₹372.5 on listing day, at a discount of ₹77.5 from the offer price, a loss of 17.22%.

General Insurance Corporation of India

General Insurance Corporation of India (GIC), which had an ₹11,175.84 crore IPO was subscribed 1.3 times. It had an offer price of ₹912 but closed at ₹870.40 on listing day, at a discount of ₹41.6 from the offer price, a loss of 4.56%.

SBI Cards

The ₹10,354.77 crore IPO of SBI Cards was subscribed 26.5 times. The company’s share, which had an offer price of ₹755 closed at ₹683.20 on listing day, at a discount of ₹71.8 from the offer price, at a loss of 9.51%.

SEE ALSO:

Hyundai IPO review – Everything you need to know about India’s biggest IPO

The Ola Electric Saga: Are surge in complaints and declining market share a wake-up call for Bhavish Aggarwal?

Hyundai To Swiggy: Everyone wants to cash in on the IPO bonanza