The robust market for initial public offerings in 2021 has made fortunes for many investors as over 60 companies got listed on exchanges during the year. Companies like Latent View Analytics, MapmyIndia were amongst IPOs that made huge profits for investors.
The bull run in Indian equities that continued from mid-2020 up until late 2021 made good money for many investors and promoters along the way. Analysts say the IPO frenzy is over and may remain still for some time.
“I think the market flies but not for every company, for good companies there is still enough demand because overall sentiment of the market has changed. The IPO frenzy is now over as there has been a bit of mismatched expectations of promoters and investors who are asking for a fairly low value. Therefore promoters are thinking if they should list now or wait,” said Yatin Shah, co-founder & joint CEO at IIFL Wealth.
“This reconciliation factor, which is clearly seen among many founders and promoters which were thinking of the next value and today they are not getting that. This is specially for tech companies where 100% new demand is not there. This phase will continue for some time,” added Shah.
Chairperson of data and analytics company registers a wealth of ₹5,500 crore post stellar IPO listing gains
The IPO boom helped even chairperson and executive director, AV Venkatraman of LatentView Analytics aged 52 to enter the list of India’s richest man. Venkatraman is the richest new entrant in this software & services sector with a wealth of ₹5,500 crore, as per IIFL Wealth Hurun India Rich List 2022 report.
For those who don’t know, shares of Latent View Analytics made a strong listing on the National Stock Exchange (NSE) and BSE as it more than doubled investors’ money by listing at 169% premium over the issue price. Interestingly, the company’s IPO witnessed one of the highest subscriptions by 326 times.
The 15-year old company provides analytics services such as data and analytics consulting, business analytics and insights, advanced predictive analytics, data engineering, and digital solutions.
Surat based company’s boss becomes richest man post IPO listing
Another IPO star is Ashwin Desai aged 71, founding promoter and MD of Aether Industries, which was launched in 2022 when the IPO frenzy was almost over. Desai debuted on the list of rich individuals with a wealth of ₹10,300 crore.
The company managed to get listed on the Indian exchanges at a 9.99% premium supported by positive market momentum. Aether Industries — which is based out of Surat, Gujarat — focuses on producing advanced intermediates and specialty chemicals involving complex, differentiated chemistry and technology core competencies.