LIC IPO – the biggest public issue in India’s share market – opened for subscription today, with a plan to raise up to Rs 21,000 crore. LIC public issue has opened amid investor euphoria, with institutions and individuals seemingly keen on getting a slice of the hyped up IPO. However, bigger doesn’t necessarily mean better; in fact, going by history, the biggest of the public share issues have only destroyed investor wealth over the years.
In four of the last five biggest IPOs, both private and PSUs, investors have lost nearly up to their entire investments. Investors in Paytm (One97 Communications), Reliance Power, Coal India Ltd, and General Insurance Corporation have lost 20-97% of their original investments in these public issues. On the other hand, while SBI Card and Payment Services stock is in green since its issue two years ago, it has massively underperformed the benchmark indices.
As LIC IPO opens today, here’s a look at 5 biggest public issues so far and how they have fared
One97 Communications (Paytm):
Share price down 72.04% since IPO 6 months ago
Issue price: Rs 2,150
Current price: Rs 601
IPO date: November 2021
Issue size: Rs 18,000 crore
The initial public offering of Paytm parent One97 Communications opened for subscription last year in November, and saw 1.89 times subscription, led by QIBs and retail investors. Paytm stock has not fared well post listing. Its all-time high was on the listing day itself at Rs 1,955, while its all-time low is at Rs 521.
Share price down 23.6% since IPO 11 years, 6 months ago
Issue price: Rs 245
Current price: Rs 187
IPO date: November 2010
Issue size: Rs 15,199 crore
Coal India raised Rs 15,199 crore in what was India’s biggest initial public offering of shares at the time. The State-run miner is the world’s largest coal miner. Coal India shares debuted on stock exchanges in November 2010. Its all-time high was Rs 447, while its all-time low is at Rs 109.
Share price down 96% since IPO 14 years, 3 months ago
Issue price: Rs 450
Current price: Rs 14
IPO date: January 2008
Issue size: Rs 10,123 crore
Helped by investors’ faith in the family’s name as a result of the group of companies set up by Anil Ambani’s father, tycoon Dhirubhai Ambani, Reliance Power IPO garnered good response from investors. The IPO was sold between January 15 and January 18 of 2008 and was subscribed about 70 times. Apart from enjoying the status of the ‘biggest IPO ever’ title at that time, this issue had another distinction. It was subscribed within the first few minutes of its book-building process. Reliance Power shares hit an all-time high of Rs 530 and all time low of Re 1 per share.
General Insurance Corporation of India
Share price down 85% since IPO 4 years, 6 months ago
Issue price: Rs 912
Current price: Rs 133
IPO date: October 2017
Issue size: Rs 11,256 crore
The IPO of the reinsurer which was opened during October 11-13, 2017, was oversubscribed 1.38 times. General Insurance Corporation of India shares listed at a discount on bourses. While the stock has rallied 10% in the last one month, it has plunged 68% in the last five years. Currently, General Insurance Corporation of India shares hit an all-time high of Rs 899 and all time low of Rs 81.5 per share.
SBI Cards & Payment Services:
Share price up 8.6% since IPO 2 years, 1 month ago
Issue price: Rs 755
Current price: Rs 820
IPO date: March 2020
Issue size: Rs 10,341 crore
The company, owned by India’s largest lender the State Bank of India raised Rs 10,341 crore from the public issue. This IPO was a big draw among investors in 2020. The issue was sold between March 2 and March 5, and garnered 26.54 times subscription. SBI Cards and Payments stock hit an all-time high of Rs 1,165 and all time low of Rs 495 apiece.