Top 10 Most Successful IPO in India: A Comprehensive Analysis

An Initial Public Offering (IPO) is when a private company first offers its shares to the public. It’s like opening the doors of your company to everyone who wants to invest. This allows the company to raise money and also gives regular people a chance to own a part of it. In India, many companies have used IPOs to grow and become big names. But which ones have been the most successful IPO in India? This article dives deep into the top 10 IPO in India 2024, exploring their journey from listing to today.

What Makes an IPO “Successful”?

Before we jump into the list of top 10 biggest IPO in India, let’s understand what makes an IPO successful. There are a few key things:

• Listing Gains: How much the share price goes up on the first day of trading.
• Long-Term Performance: How the share price performs over months and years.
• Investor Returns: How much profit investors make from their investment.

This article will consider all these factors to identify the most successful IPO in India. We’ll explore the most successful IPO in India from different perspectives.

Recommended Read :- What Is Angel Investing & How Does It Work?

Top 10 Most Successful IPO in India

Here’s a look at some of the most successful IPO in India for long term, considering their listing gains, long-term performance, and overall impact:

(Note: Due to the dynamic nature of stock markets, specific data like current stock prices may change. The data below is for illustrative purposes and should be verified with current market information.)

1. DMart (Avenue Supermarts Ltd.) (2017)

DMart, a popular retail chain, had one of the most successful IPO in India. It was highly anticipated, and when it finally listed, it created a buzz.

• Issue Price: ₹299
• Listing Date: March 21, 2017
• Listing Gains: Over 100% (Listed around ₹600)

DMart’s success can be attributed to its strong business model, focus on value pricing, and efficient operations. This made it one of the most successful IPO in India.

2. IRCTC (Indian Railway Catering and Tourism Corporation) (2019)

IRCTC, the company that handles online ticketing and catering for Indian Railways, also had one of the most successful IPO in India.

• Issue Price: ₹320
• Listing Date: October 14, 2019
• Listing Gains: Over 100% (Listed around ₹644)

IRCTC’s monopoly in its sector and strong brand recognition contributed to its most successful IPO in India status.

3. CDSL (Central Depository Services (India) Limited) (2017)

CDSL, a depository that holds securities in electronic form, had a very strong IPO. It’s considered one of the most successful IPO in India by many investors.

• Issue Price: ₹149
• Listing Date: June 30, 2017
• Listing Gains: Over 75% (Listed around ₹265)

CDSL’s business model is closely tied to the growth of the stock market, which contributed to it being one of the most successful IPO in India.

4. HDFC AMC (HDFC Asset Management Company Limited) (2018)

HDFC AMC, one of India’s leading asset management companies, also had a most successful IPO in India.

• Issue Price: ₹1,100
• Listing Date: August 6, 2018
• Listing Gains: Around 65% (Listed around ₹1,735)

The strong brand name of HDFC and the growing mutual fund industry in India helped make this one of the most successful IPO in India.

5. SBI Cards and Payment Services (2020)

SBI Cards, the credit card arm of State Bank of India, had a much-anticipated IPO. It’s considered among the most successful IPO in India in the financial sector.

• Issue Price: ₹755
• Listing Date: March 16, 2020 (timing was challenging due to the start of the COVID-19 pandemic)
• Listing Gains: Around 13% initially (Listed around ₹800, but faced market volatility soon after)

Despite launching during a turbulent market period, SBI Cards’ strong backing and the growing credit card market in India contributed to its relative success, making it noteworthy among the most successful IPO in India. It demonstrated resilience even in tough times.

6. Polycab India (2019)

Polycab, a leading manufacturer of wires and cables, witnessed a good response to its IPO. This is another example of the most successful IPO in India from the manufacturing sector.

• Issue Price: ₹538
• Listing Date: April 16, 2019
• Listing Gains: Around 20% (Listed around ₹640)

Polycab’s established presence in the market and its strong distribution network made it an attractive investment, contributing to its place among the most successful IPO in India.

7. Info Edge (India) Ltd. (1996)

Info Edge, the parent company of popular websites like Naukri.com, Jeevansathi.com, and 99acres.com, had an IPO much earlier than most on this list. This makes it a significant example of the most successful IPO in India over the long term.

• Issue Price: ₹30
• Listing Date: 2006
• Listing Gains: Significant gains over time, becoming a multi-bagger.

Info Edge’s success lies in its early recognition of the potential of online classifieds in India. This foresight made it one of the most successful IPO in India with substantial long-term returns for investors.

8. InterGlobe Aviation (IndiGo) (2015)

IndiGo, India’s largest airline by market share, had a very successful IPO. This is an example of the most successful IPO in India within the aviation industry.

• Issue Price: ₹765
• Listing Date: November 10, 2015
• Listing Gains: Around 15% (Listed around ₹890)

IndiGo’s focus on low-cost operations and efficient management contributed to its success, securing its position as one of the most successful IPO in India.

9. Bajaj Finserv (2007)

Bajaj Finserv, the financial services arm of the Bajaj Group, has also been considered one of the most successful IPO in India.

• Issue Price: ₹1000
• Listing Date: 2007
• Listing Gains: Substantial gains over the long term.

Bajaj Finserv’s diversification into various financial services and strong brand reputation have contributed to its long-term success, making it one of the most successful IPO in India.

10. Muthoot Finance (2011)

Muthoot Finance, a leading gold loan company, had a successful IPO. It represents an example of the most successful IPO in India from the non-banking financial company (NBFC) sector.

• Issue Price: ₹175
• Listing Date: April 26, 2011
• Listing Gains: Moderate gains on listing, with consistent growth over time.

Muthoot Finance’s strong presence in the gold loan market and its focus on rural areas have contributed to its stable performance, making it a noteworthy example of the most successful IPO in India.

This expanded list of most successful IPO in India NSE provides a broader view of the most successful IPO in India across different sectors and timeframes. Remember that past performance is not indicative of future results, and careful research is always essential before investing.

Factors Contributing to the Most Successful IPO in India

Several factors contribute to making an IPO one of the most successful IPO in India:

1. Market Conditions

The overall market conditions play a significant role in the success of an IPO. When the stock market is performing well (a bullish market), investors are more likely to invest in new companies, leading to higher listing gains and better subscription rates. In contrast, during a bearish market, when the stock market is not performing well, investors might be more cautious, leading to lower interest in IPOs.

2. Company Performance

A company’s past performance and financial health are crucial indicators of its potential success in an IPO. Here are some aspects to consider:

• Revenue Growth: Companies that have consistently increased their revenue over time are often more attractive to investors.
• Profitability: Companies that are profitable and show strong earnings are seen as less risky investments.
• Low Debt Levels: Companies with low levels of debt are perceived to be in a better financial position.
• Solid Business Model: A clear and sustainable business model indicates that the company has a plan for long-term success.

3. Investor Sentiment

Investor sentiment refers to the overall attitude of investors towards the market or a particular company. Positive media coverage, strong interest from institutional investors, and favorable industry trends can boost investor confidence and interest in an IPO. If investors believe that a company has strong growth prospects, they are more likely to invest in its IPO.

4. Pricing Strategy

The pricing of the IPO is another critical factor. The company and its underwriters (investment banks that help bring the IPO to market) need to set a price that balances attracting investors and raising enough capital for the company. If the IPO is priced too high, it might deter potential investors. If it’s priced too low, the company might not raise as much capital as it could. A well-balanced pricing strategy can lead to higher subscription rates and listing gains.

5. Industry Trends

The industry in which the company operates also affects the success of an IPO. For instance, if the technology sector is booming, a tech company’s IPO is likely to attract more interest and investment. Keeping an eye on industry trends and choosing the right time to go public can significantly enhance an IPO’s success.

The success of an IPO in India is influenced by several factors, including market conditions, company performance, investor sentiment, pricing strategy, and industry trends. Understanding these factors can help investors make informed decisions and potentially reap higher returns.

By paying attention to these aspects, investors can increase their chances of participating in the most successful IPO in India.

How to Invest in Successful IPOs

Investing in IPOs can be an exciting opportunity, but it requires careful planning and research. Here’s a step-by-step guide to help you invest in the most successful IPO in India.

1. Research the Company

Before investing in an IPO, it’s essential to research the company thoroughly. Here’s what you should look for:

• Company Background: Understand what the company does, its products or services, and its business model.
• Financial Health: Check the company’s revenue growth, profitability, and debt levels. Look for consistent revenue growth and strong earnings.
• Management Team: A competent and experienced management team can significantly impact the company’s success.

2. Analyze Market Conditions

Market conditions play a crucial role in the success of an IPO. Here are some factors to consider:

• Bullish Market: When the stock market is performing well, investor confidence is high, which can lead to higher listing gains.
• Economic Indicators: Keep an eye on economic indicators such as GDP growth, inflation rates, and interest rates.

3. Understand the IPO Process

Knowing how the IPO process works can help you make informed decisions. Here’s a simple breakdown:

• Filing with SEBI: The company files a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
• Approval and Pricing: After SEBI’s approval, the company and its underwriters set a price band for the IPO.
• Bidding Period: Investors can place their bids within the price band during the bidding period.

4. Evaluate Subscription Rates

Subscription rates indicate the level of interest in an IPO. Here’s how to interpret them:

• High Subscription Rate: A high subscription rate means strong investor interest, which can lead to higher listing gains.
• Types of Investors: Look at the subscription rates from different investor categories (retail investors, qualified institutional buyers, etc.).

5. Make a Bid

When you decide to invest in an IPO, you need to place a bid during the bidding period. Here’s how to do it:

• Choose a Broker: Select a brokerage firm that offers IPO investment services.
• Complete the Application: Fill out the IPO application form provided by your broker.
• Place Your Bid: Enter your bid price within the price band and the number of shares you want to buy.

6. Allocation of Shares

After the bidding period ends, the shares are allocated to investors. Here’s what happens next:

• Pro-rata Basis: If an IPO is oversubscribed, shares are allocated on a pro-rata basis, which means you might receive fewer shares than you applied for.
• Refunds: If you don’t get the full allocation, the remaining amount is refunded to your bank account.

7. Listing and Post-listing Strategy

Once the shares are allocated, they will be listed on the stock exchange. Here’s what you need to know:

• Listing Day: The shares start trading on the stock exchange, and you can see the listing gains or losses.
• Long-term Investment: Consider holding onto the shares for the long term if the company has strong growth potential and solid fundamentals.
• Monitor Performance: Keep an eye on the company’s performance and market conditions to make informed decisions about holding or selling the shares.

Investing in successful IPO in India requires thorough research, understanding market conditions, and following the IPO process carefully. By paying attention to the company’s financial health, market sentiment, subscription rates, and long-term potential, you can increase your chances of making profitable investments.

Benefits of Investing in an IPO

Investors can derive several potential benefits from participating in an Initial Public Offering (IPO). Here are some of the key advantages:

1. Profit Potential

If the company’s stock price increases after the IPO, investors who bought shares at the offering price can sell them at a profit on the open market. This capital gain potential is one of the primary attractions for IPO investors.

2. Access to Early Stage Opportunities

IPOs allow investors to get in on the ground floor of a company’s public trading journey. This can provide an opportunity to invest in promising companies with significant growth potential before they become widely known.

3. Liquidity

For existing shareholders of the company, such as founders, employees, or early investors, going public provides an avenue to sell their shares and convert their ownership into liquid assets. This liquidity can be valuable, especially for individuals who may have been holding onto their shares in a private company for an extended period.

4. Portfolio Diversification

Including IPOs in an investment portfolio can contribute to diversification. Investing in a range of assets, including companies at different stages of development, can help spread risk and potentially enhance overall portfolio performance.

5. Market Visibility and Transparency

Once a company goes public, it becomes subject to regulatory requirements that mandate regular financial reporting and disclosure. This increased transparency can provide investors with more information about the company’s financial health, operations, and plans, aiding in more informed investment decisions.

Best IPOs to Invest in India

Few companies have what it takes to become the most successful IPO in India. Here are some of the best IPOs to invest in 2024:

1. OYO Rooms

• Since its launch in 2013, OYO Rooms has become a leading player in the hospitality services space.
• Now the company is taking a big step forward with its Rs. 8,430 crore IPO. It includes an Rs. 7,000 crore primary offering and a Rs. 1,430 crore secondary offering from existing investors and shareholders.
• With this move, OYO is sure to take the digital hospitality services industry to the next level.

2. Droom

• Droom, the leading online automobile marketplace, is gearing up to go public in 2024.
• It recently filed with SEBI for a Rs. 3,000 crore offer. It features a fresh share issue of Rs. 2,000 crores and an OFS of Rs. 1000 crores.
• The proceeds will be put toward organic and inorganic growth initiatives, general corporate expenses, and other exciting new projects.

3. MobiKwik

• MobiKwik is one of the leading digital payment platforms in India.
• The IPO announcement was made in July 2021.
• It indicates that the IPO will consist of Rs. 1,500 crores in the form of a fresh equity share issue.
• As well as an offer for the sale of Rs. 400 crores from selected promoters and shareholders.

4. Snapdeal

• Snapdeal is set to make waves with its highly anticipated initial public offering (IPO) worth Rs. 1,250 Crores.
• This offering will provide existing shareholders and investors with an opportunity to sell their shares.
• It’s sure to be a momentous occasion for the e-commerce giant, and a major moment in Indian history.

5. Ola

• In 2024, Indian tech start-up Ola is expected to go public with an impressive issue size of Rs. 15,000 crores.
• Ola recently wrapped up its pre-IPO funding round, so get your investor hats on and start preparing your portfolio!

IPO Performance in India

Companies launch IPOs even during times when the stock market is experiencing a downturn. Let’s dive deeper into this and explore the historical performance of some of the most successful IPOs in India:

• Back in 1977, Reliance made history by becoming the first-ever Indian company to go public. They held an IPO, and it proved to be an absolute success. To this day, it remains one of the most successful IPOs in India. This happened even before the formation of the SEBI.
• The 2008 crash was not enough to stop Indian companies from launching their IPOs. V-Guard Industries launched theirs on 13th March 2008. It was oversubscribed by 4 times!
• The Indian retail investor scene exploded during the lockdown in 2020. The public was eager to get in on the action. The raging success of finance-themed films only served to ignite the public’s interest further. A staggering 1.5 Crores of Demat accounts were opened. Many companies launched their IPOs as amateur investors poured money without any research.
• Around mid-2022, the pandemic became a thing of the past. But not much had changed in the IPO scene. Although some retailers have opted to do their due diligence before investing, many are still throwing their money in without doing any research. This is evidenced by the LIC IPO being undersubscribed while Adani Wilmar soared to great heights.

Conclusion

Investing in the most successful IPO in India can be a lucrative opportunity if done wisely. One of India’s standout IPOs is Sigachi Industries, which delivered an impressive listing gain of 270.4% for its investors. Other significant IPOs, such as Tata Technologies and Paras Defence and Space Technologies, also experienced notable listing gains. These offerings have showcased strong financial results and high demand from investors, marking them as exceptional successes in the Indian market. Such successful IPOs not only provide considerable returns to investors but also highlight the substantial growth potential of the companies behind them.

Innovative, low-investment ideas for the hidden entrepreneur in you! Explore our guide on Business Ideas.

Frequently Asked Questions (FAQ’s)

Other Related Reads

• Understanding The Different Types Of Companies In India And Their Features
• Top 10 Stocks for Long Term Investment in 2023
• How to Invest in Stock Market in India: Guide for Beginners
• How to Register a Startup in India? Here’s Your Step-by-Step Guide!