Paytm, Nykaa & other new-age tech firms raise ₹1.2 lakh crore through IPOs in 2021: Report

Raising the highest amount of money through IPOs to date, new-age technology brands including Paytm, Zomato, Nykaa, Policybazaar, and others have collected a record amount of Rs 1.2 lakh crore through their initial public offerings in 2021. Amid COVID concerns, the Indian stock market went through an unstable pace further taking new heights at the year-end. Apart from that, the Indian primary market which was also buzzing throughout the year with a total of 63 companies with their initial public offerings, also led to a collection of Rs 1,18,704 crore (USD 15.4 billion) through IPOs this year.

The raisings becoming the highest-ever in a calendar year comes after 2017 which was the previous best year with a raise of Rs 68,827 crores. Also, the money raised in 2021 is 62% more than the total amount of Rs 73,003 crores that was raised in the preceding three years from 2018-2020. Earlier in 2020, a total amount of Rs 26,613 crores was raised through IPOs in India and also is one-fifth of the total mop up in this year. 

Speaking on the same, Pranab Haldea, the Managing Director of Prime Database Group said that the IPOs from the new-age loss-making technology startups followed by strong retail participation and huge listing gains were the key highlights which led to the record fundraising in the market. Also, the fundraising has increased the investors' interest in IPOs. Notably, the benchmark indices of the Indian stock market also touched new heights this year with the Bombay Stock Exchange hitting a record high of 62245.43 points and the National Stock Exchange at 18604.45 points. 

Record fundraising by tech companies in 2021

With the largest-ever IPO in India, One 97 Communications which is the parent company of Paytm raised a whopping amount of 18,300 crores through its initial public offering. While it was subscribed 1.89 times, it also made a disaster debut at the stock market by crashing at 27% from its issue price on the first day. Following Paytm, the second-largest IPO was Zomato as it raised Rs 9,375 crores through its IPO getting subscribed 38.25 times. 

Furthermore, the parent company of Policybazaar and Paisabazaar, PB Fintech raised Rs 5,710 crores from the primary market to its fresh issue of equity shares and offer of sale by existing shareholders. Subscribed by 16.59 times, it made a market debut at a 17% premium over the issue price. 

Last but not the least, online beauty e-commerce platform Nykaa through its strong debut at the stock market raised Rs 5,352 in its initial public offering and got subscribed by 81.78 times. 

Apart from these, other companies also came with their IPOs including Indian Railway Finance Corporation Limited, Star Health and Allied Insurance Company, Indigo Paints, MedPlus Health Services, Barbeque Nation, Kalyan Jewelers, and others.

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