Healthcare, consumer firms lead the top-performing IPOs

Priya Kansara Mumbai | Updated on January 20, 2018


Trend may continue in the upcoming public offers this year also

Had you invested in a healthcare or a consumer product company IPO in the financial gone by, chances are that you would be quite pleased with your decision.

Besides being a record year for initial public offerings in recent times, 2015-16 also saw hearty investor welcome for the consumer story.

Of the top performing newly listed companies in FY16, seven are from consumer sectors.

Dr Lal Path Labs, Manpasand Beverages, Syngene International, SH Kelkar and Company and Narayana Hrudayalaya Ltd figure among the top 10 performing IPO gainers of FY16.

“FY16 has been the first year where we have not seen a single IPO from the real estate or infrastructure sectors but from the broader consumption theme. I expect this broader theme to continue in fiscal 2017,” S Ramesh, Managing Director and CEO, Kotak Investment Banking, told BusinessLine.

The strong returns posted by consumer and healthcare companies’ public offers seem to have positively rubbed-off on investors this fiscal too. The recent issue of Thyrocare Technologies saw a tremendous response with overall subscription of 73.55 times.

While the high net worth individual segment was subscribed 225 times, the qualified institutional buyers and retail quota were subscribed 73.2 and 8.7 times, respectively.

Banking and finance space also found favour with investors.

Equitas Holdings, the first listed small finance bank on the horizon, got subscribed over 17 times and closed on April 21 with 23 per cent premium over its issue price.

Ujjivan Financial Services also got an overwhelming response from investors especially HNIs and QIBs.

Overall the issue got subscribed 41 times.

Banking has been an addition to the consumption theme thanks to emerging formats such as payment and small finance banks.

According to Prime Database, for 2016-17, SEBI has cleared IPOs of 21 companies to cumulatively raise an estimated ₹8,400 crore. Of these, 14 companies form part of consumption themes like banks, textiles, automotive components, real estate, and healthcare and FMCG.

Published on May 03, 2016

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