The Most Successful IPOs in Stock Market History

In recent years, the Indian stock market has cultivated a vibrant IPO scene. Over the past two decades, there have been many stellar public issues that have not only benefited the issuing company immensely but have also managed to provide investors with benchmark-beating returns.

Here’s an overview of some of the top IPOs in the history of the Indian stock market.

Most Successful IPOs in the Indian Stock Market In Terms of Funds Raised 

Undersubscription is one of the major risks of any large public issue. However, despite this risk, many Indian companies have successfully raised funds worth tens of thousands of crores. Let’s take a closer look at some of the most successful IPOs in terms of funds raised.

Life Insurance Corporation (LIC) 

The public issue of the state-owned Life Insurance Corporation was opened for subscription starting from May 04, 2022, to May 09, 2022. The price band of the IPO was set at Rs. 902 to Rs. 949 per share with a discount of Rs. 45 per share for retail investors.

The total size of the issue was Rs. 21,000 crores which the company managed to successfully raise. The shares of LIC were listed on the stock exchanges on May 17, 2022, at Rs. 872 per share, down by about 8.11% from the issue price.

One 97 Communications (Paytm) 

One 97 Communications Limited, the parent company of Paytm, came up with a public issue worth Rs. 18,300 crores in 2021. The issue opened for subscription from November 08, 2021, to November 10, 2021.

The pricing of the issue was set at Rs. 2,080 to Rs. 2,150 per share with a 5% discount for retail investors. Although the company’s public issue was successfully subscribed, it listed at a discount of 9.30% from its issue price of Rs. 1,950 per share.

Most Successful IPOs in the Indian Stock Market In Terms of Performance 

Despite being successful at raising funds from the public, many IPOs ultimately struggle to perform. However, there are a few issues that have been successful in terms of performance.

Let’s take a closer look at two of the best-performing IPOs that also raised significant funds in the Indian stock market.

Coal India 

Coal India is a state-owned corporation that has managed to make it to the list of the most successful IPOs in India. Opened to the public from October 18, 2010, to October 21, 2010, the issue managed to raise about Rs. 15,200 crores, holding the title of the biggest IPO for about 11 years till the public issue of Paytm came along.

The issue was priced at Rs. 225 to Rs. 245 per share with a discount of 5% for retail investors. When it was finally listed on the exchanges on November 04, 2010, the price opened at Rs. 291 per share, at a premium of about 25% from the issue price.

Zomato 

Zomato, India’s largest food delivery and aggregator network, came out with its public issue in 2021. The total issue size of the IPO was around Rs. 9,375 crores and was priced very nominally starting from Rs. 72 to Rs. 76 per share.

When the shares were finally listed on July 27, 2021, they opened at Rs. 116 per share, up by about 52.63% from the issue price. This made it one of the best-performing IPOs in terms of value created for investors.  

Conclusion

After going through a golden phase, the Indian IPO scene is currently enduring tough times (as of May 2023). However, the market sentiment may turn positive in the future, with more companies coming out with larger-than-ever successful IPOs.