The year 2014 marked the return of retail investors, particularly from high net worth segment, into primary markets. According to NSE, six companies, including Wonderla Holidays, Snowman Logistics and Sharda Cropchem, have tapped capital markets to raise funds through initial public offering.

Among them, Snowman Logistics and Sharda Cropchem witnessed huge interests from retail investors.

Snowman’s show The public issue of the country’s largest cold chain solutions provider was subscribed by 60 times. The non-institutional portion (individual investors bidding over ₹2 lakh on the offer) of Snowman Logistics had been subscribed 221 times.

Similalry. the HNI portion in Sharda Cropchem was subscribed 251 times.

Of the six issues, Loha Ispaat, which tried to raise funds in March, was forced to withdraw the issue due to lack of investors’ interest.

Of the five successful IPOs, three companies have rewarded their shareholders with stellar returns. The stock of Snowman Logistics, which is currently trading at ₹95, rose two-fold since its listing in September.

Wonderla Holidays at ₹295 has also risen 100 per cent from the issue price of ₹125.

The stock of Sharda Cropchem gained over 60 per cent to ₹253 against the issue price of ₹156.

Monte Carlo disappoints Monte Carlo Fashions, which hit the market on December 3-5 and received strong response from investors, slipped to ₹564 against the issue price of ₹645.

Another loser was Shemaroo Entertainment. The stock is currently ruling at ₹158.7, down from the offer price of ₹170.

With 20 companies, including Videocon D2H, Rashtriya Ispat Nigam and Adlabs Entertainment, planning to tap the capital market with IPOs, 2015 is set to see higher activity in the primary market.

But the aura will sustain only if the economic reforms and secondary market maintain the momentum.

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