If you’ve recently come across the term Initial Public Offering (IPO) or read our blogs on IPOs, you may have wondered, what were the biggest IPOs in India?
Well, if that’s the case, you’ve come to the right place. This blog is all about the biggest IPOs in the history of India. Knowing what the biggest and the best IPOs were worth gives us a benchmark to compare our existing or future investments with.
But before we delve into a list of the 9 biggest IPOs in India, let’s figure out what an IPO means. Psst… If you’re an investor who values your money, stick around till the end of this blog to know if you should invest in IPOs. You can also consult a Cube Wealth coach or download a Cube Wealth application.
9 Of The Best Indian IPOs Since 2000
The following list includes some IPOs that may come across as obvious to many and others that you wouldn't really expect to see on a list like this. Bear in mind that most of these stocks are trading well below their IPO price.
1. Coal India IPO
- IPO year: 2010
- IPO value: ₹15,200 crore
- Issue date: 18th to 21st October 2010
- Listing date: 4th November 2010
- Price Per Share: ₹225 to ₹245
- Current Price Per Share: ₹125.20
- Current Market Cap: ₹76,695.15 Cr
2. Reliance Power IPO
- IPO year: 2008
- IPO value: ₹11,700 crore
- Issue date: 15th to 18th January 2008
- Listing date: 11th February 2008
- Price Per Share: ₹405 to ₹450
- Current Price Per Share: ₹3.20
- Current Market Cap: ₹900.45 Cr
3. General Insurance Corporation (GIC) IPO
- IPO year: 2017
- IPO value: ₹11,256.83 crore
- Issue date: 11th to 13th October 2017
- Listing date: 25th October 2017
- Price Per Share: ₹855 to ₹912
- Current Price Per Share: ₹138.10
- Current Market Cap: ₹24,201.95 Cr
4. Oil and Natural Gas Corp (ONGC) IPO
- IPO year: 2004
- IPO value: ₹10,534 crore (adjusted for inflation)
- Issue date: 5th to 13th March 2004
- Price Per Share: ₹680 to ₹750 (adjusted for inflation)
- Current Price Per Share: ₹80.30
- Current Market Cap: ₹100,956.74 Cr
5. New India Assurance IPO
- IPO year: 2017
- IPO value: ₹9,585.82 crore
- Issue date: 1st to 3rd November 2017
- Listing date: 13th November 2017
- Price Per Share: ₹770 to ₹800
- Current Price Per Share: ₹118.05
- Current Market Cap: ₹19,487.60 Cr
6. DLF IPO
- IPO year: 2007
- IPO value: ₹9,187.5 crore
- Issue date: 11th to 14th June 2007
- Listing date: 5th July 2007
- Price Per Share: ₹500 to ₹550
- Current Price Per Share: ₹184.50
- Current Market Cap: ₹45,644.75 Cr
7. HDFC Standard Life Insurance IPO
- IPO year: 2017
- IPO value: ₹8,695.01 crore
- Issue date: 7th to 9th November 2017
- Listing date: 17th November 2017
- Price Per Share: ₹275 to ₹290
- Current Price Per Share: ₹660.80
- Current Market Cap: ₹133,456.82 Cr
8. Cairn India IPO
- IPO year: 2006
- IPO value: ₹8,616 crore
- Issue date: 11th to 15th December 2006
- Listing date: 9th January 2007
- Price Per Share: ₹160 to ₹190
- Current Price Per Share: NA
- Current Market Cap: NA
Cairn India amalgamated with Vedanta Ltd in 2018.
9. ICICI Prudential Life Insurance IPO
- IPO year: 2016
- IPO value: ₹6,057 crore
- Issue date: 19th to 21st September 2016
- Listing date: 29th September 2016
- Price Per Share: ₹300 to ₹334
- Current Price Per Share: ₹454.50
- Current Market Cap: ₹65,247.42 Cr
10. Life Insurance Corporation Of India
- IPO year: 2022
- IPO value: ₹93,675 Cr
- Issue date: 4th to 9th May 2022
- Listing date: 17th May 2022
- Price Per Share: ₹902 to ₹949
- Current Price Per Share: ₹633.75
- Current Market Cap: ₹40,100 Cr
FAQs Around IPOs
What Is An Initial Public Offering (IPO)?
Private companies are allowed to have a limited number of investors by law. So if a private company wants to bring more investors on board, it has to go public.
The process of going public is initiated through an Initial Public Offering (IPO). An IPO allows the company to trade on the stock exchange. So regular investors from outside the company can buy and sell shares.
IPOs are more commonplace in India than most Indians think. There have been 43 IPOs in 2020 alone. Compared to the number of IPOs since 2008 (164), this is promising. Some of these IPOs even hold the title of the biggest IPOs ever seen in India.
Should You Invest In An IPO?
There are risks and rewards to each investment and IPOs fall under the high risk-high reward category. IPOs allow investors to get in cheap and get potentially high returns in the future along with brand exposure.
But of course, not every investor is comfortable with the uncertainty and high risk-high reward potential of IPOs. The great Warren Buffet himself avoids IPO investments. Except, he still regrets not investing in Amazon's IPO.
Even so, investing in any market instrument would depend on your investment goals, risk tolerance, age, and other factors. Remember to always consult a trained financial professional before investing in IPOs.
Does Applying For IPO On First Day Increase Chances?
The first applicant accepted or the first come, first served rule are not used for IPO allocation. It depends on how investors react to the IPO. You can be given the number of lots you requested if the IPO is under subscribed and has not received a positive response from investors. The allocation of shares to retail investors, on the other hand, depends on the total number of shares available in the retail quota divided by the minimum lot size, if the IPO is oversubscribed due to significant demand from investors. You can also consult a Cube Wealth coach or download a Cube Wealth application.
Where to check IPO Application and Allotment Status?
After the allotment is complete, investors can verify their IPO allocation by going to the registrar's website. BSE, NSE, CDSL, and NSDL also provide email and SMS notifications to IPO investors regarding the updated IPO allotment status.
IPO allotment status offers information on how many shares were assigned to the investor in an IPO. The registrar of the IPO manages the allotment process for the IPO. The day that the public is informed of the allotment status on the website of the IPO registrar is known as the "IPO allotment date."
Is investing in IPO's less risky than directly investing in stock market?
No. Its not less risky investing in an IPO, but its a great way to start investing in some firms. Not every IPO offers profitable profits.
The following are a few hazards of applying to an IPO:
1. Stock lists for less than the initial issue price.
2. The issue was significantly oversubscribed, and the investor was not allocated.
3. Any errors made in the refund processing could cause a delay in receiving the money for unallocated shares.
4. You might lack sufficient knowledge of the business.
Although, it completely depends on the goal and what kind of risk an investor is ready to take. It is always best to do your own part of research and take decisions wisely.
How is IPO listing price decided?
How well an IPO is listed on the stock exchange and how this affects the IPO listing price will depend on a number of factors:
1. Demand
2. Growth Prospects of the Company
3. Current market Conditions
4. Grey Market Premium
5. The OFS (Offer for Sale) Value
6. Market Sentiments
7. Global Factors
How is the cut off price of IPO decided?
The investment bankers start the price discovery process after the IPO closes. There are numerous bids at varied rates as there is no announced fixed price. A weighted average of all the received offers is used by the bankers to determine the final price. The cut-off price is the final price that is chosen. You can also consult a Cube Wealth coach or download a Cube Wealth application.
Conclusion
In conclusion, the Indian IPO market has witnessed several major offerings over the years, with nine standout IPOs making a significant impact on the financial landscape. These IPOs, characterized by substantial valuations and investor interest, have not only provided companies with capital for growth but have also offered investors an opportunity to participate in the success of these prominent Indian enterprises. These large-scale IPOs are indicative of the robust nature of India's corporate sector and its ability to attract both domestic and international investments. As the Indian economy continues to evolve, it is expected that the IPO market will remain dynamic, with the potential for even more significant offerings in the future.
The offer price at which the shares are released to investors is known as the "cut-off price," it can be any price that falls within the given price range.
Note:
Facts & figures are true as of 20-10-2021. All information mentioned is for educational purposes and relies on publicly available information. None of the information shared here is to be construed as investment advice. We strongly recommend you consult a Cube Wealth coach before investing your money in any stock, mutual fund. PMS or alternative asset.
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