Mrs Bectors Food Specialties, the biscuits and bakery products maker, was the seventh IPO to get fully subscribed on the first day of bidding in 2020.
The Rs 540.54-crore public issue of Mrs Bectors received subscription of 2.3 times on December 15, the first day of its bidding schedule with highest interest from retail investors, employees and HNIs.
The portion set aside for retail investors was subscribed 4.4 times on December 15 and that of employees 1.4 times, while the reserved portion of non-institutional investors witnessed 66 percent subscription.
Mrs Bectors Food was the fifteenth IPO this year.
Happiest Minds Technologies was the first IPO to get full subscription on the day one of bidding itself in 2020, subscribing 2.86 times, while Chemcon Speciality Chemicals IPO witnessed highest subscription of 5.18 times on very first day.
Burger King India, Route Mobile, Mazagon Dock Shipbuilders and Likhitha Infrastructure had seen 1-3 times subscription.
Retail investors' participation played a key role this year. In fact, retail participation has been very strong in the secondary market, too, given the consistent SIP flows into equity.
The portion set aside for retail investors in Happiest Minds and Burger King India IPO was subscribed around 15 times on the first day, followed by Chemcon Speciality Chemicals (9.8 times) and Mazagon Dock Shipbuilders (5.65 times).
15 companies raised Rs 30,800 crore through IPOs in 2020 with SBI Card having the biggest IPO size of Rs 10,355 crore. After SBI Card IPO in March, there was not a single IPO due to COVID-19 pandemic and lockdown, but IPO market came back in action from July onwards and since then 14 companies so far launched their IPOs.
Experts expect the primary market to remain active in 2021 as well, with new age technology, healthcare and consumer companies launching IPOs.
"The revival in the second half (H2) helped the IPO market to gain traction in CY20. COVID Capital, new phase of fundraising, dominated the market wherein companies through QIPs and rights issue raised capital to shore up their balance sheet and for consolidation. Investors preferred to invest in sector leaders or dominant players anticipating that such companies would emerge stronger and as winners post-COVID," V Jayasankar, Senior ED & Head ECM at Kotak Mahindra Capital Company said.
"Outlook remains optimistic for the equity capital markets (ECM) business. In CY21, we may continue to see heightened IPO activity dominated by resilient sectors like new-age tech, healthcare and consumer," he added.
Given the robust IPO markets, he expects many unlisted corporates to list earlier than previously envisaged. "The need for growth capital, deleveraging to support growth as well as building buffer capital to face challenges arising on account of COVID-19 will see a buoyant fundraising activity."