IPOs give average 50% returns in 2022 despite fall in number: Analysis

Despite the fall in share sales through initial public offers so far this year, these issues have given a good 50 per cent average returns, while the Sensex gained only 1.6 per cent, shows an analysis.

So far in 2022, 51 IPOs have raised Rs 38,155 crore, down from Rs 64,768 crore through 55 issues in the same period last year.

There were only eight big-ticket issues -- with the over Rs 20,500-crore LIC being the biggest but one of the worst performers -- in 2022 compared to the last year, where 33 companies raised more than Rs 1,000 crore each, according to an analysis by Bank of Baroda house economist Dipanwita Mazumdar.

Till September 2021, the IPOs gave a return of 74 per cent, whereas Sensex had risen by 20 per cent but 16 of those big-ticket IPOs with issue size of above Rs 1,000 crore are operating at a discount.

In all of 2021, companies raised Rs 1,21,680 crore from the market and the boom can be attributed to the Sensex rally as the index jumped from 40,000 points to 60,0