The primary market really benefitted from the buoyancy seen in secondary market, especially in second half of 2020, majorly backed by liquidity.
Investors welcomed quality and niche business-owned companies as well as companies that are expected to benefit from the economic recovery in the coming year. Also, a majority of companies launched their IPOs at attractive valuations.
Total 16 companies hit Dalal Street in 2020 to raise funds via the IPO route, of which 15 have already been listed on BSE and NSE. The only one remaining - Antony Waste Handling Cell - is expected to debut on the first day of January 2021.
The companies listed this year after a blockbuster IPO include Angel Broking, SBI Card, Equitas Small Finance Bank and UTI AMC.
Among the listed entities, top four companies - Route Mobile, Burger King India, Rossari Biotech and Happiest Minds Technologies - turned multibaggers as they gave a 114-228 percent return compared to issue price.
Route Mobile is a leading cloud communication platform provider, catering to enterprises, over-the-top (OTT) players and mobile network operators (MNO).
Rossari Biotech is the specialty chemical manufacturer. Burger King is the India's fastest growing quick service restaurant chains, while Happiest Minds Technologies is a digital transformation, infrastructure, security, and product engineering services company.
Next four stocks - Mrs Bectors Foods Specialities, Gland Pharma, Mazagon Dock Shipbuilders and Computer Age Management Services - gained 40-94 percent.
UTI Asset Management Company gave the lowest return among listed entities, rising nearly a percent over issue price.
Companies, in total, raised more than Rs 31,000 crore via public issues in the current year and in the coming year, experts feel the fund raising is expected to be higher than 2020.
"I believe 2021 will also witness good numbers of IPOs from varied sectors, and liquidity in the markets and recent success of quality IPOs will aid to smooth fund raising in the primary market. Some of the notable names that could see IPOs in 2021 are LIC, Kalyan Jewellers, Grofers, Barbeque Nation, NSE, Railtel, among others," Sanjeev Hota, Head of Research at Sharekhan by BNP Paribas told Moneycontrol.
The liquidity has been the king so far, which led almost all asset classes higher. FIIs invested more than Rs 1.5 lakh crore in 2020, including the monthly record inflow of over Rs 70,000 crore in November.
As a result, the benchmark indices registered more than 14 percent gains in current year, and over 82 percent from their March 23's low. The broader markets also joined the bulls' party and run ahead of benchmarks by giving 88 percent and 108 percent return from March lows.
The improving economic trends, expected strong earnings growth after better-than-expected September quarter data, vaccine progress, controlled COVID-19 infections in India compared to western world that hit badly by the virus, government's initiative through several measures to boost economy and RBI policy measures among others helped the market rally this year.