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Notwithstanding the huge volatility in equity markets, nine companies have raised ₹6,120 crore in this week through the primary market and most of these issues were oversubscribed several times.
Incidentally, Azad Engineering IPO which closed on Friday, raised ₹740 crore and the issue was subscribed 1.01 crore shares, on Friday, the final day of bidding.
Cryogenic tank maker INOX India, which raised ₹1,459 crore on Monday through IPO, made a blockbuster debut on the stock exchanges, listing at 41 per cent above the issue price on Thursday. The shares of Inox India were listed at ₹933 a piece, more than the issue price of 660. The shares did hit an all-time high of ₹978. On Friday, the stock was down 3 per cent at ₹910.
Mahavir Lunawat, Managing Director, Pantomath Capital Advisors, a leading mid-market investment bank said IPOs serve as a bellwether for market sentiment and investor appetite, making them an essential aspect to monitor.
The excitement surrounding these offerings could potentially stimulate market activity, paving the way for a vibrant trading week, he added.
Another 27 companies have already obtained the green light from the market regulator SEBI to float their public issues to raise around ₹29,000 crore. About 29 companies are awaiting for approval to cumulatively raise about ₹34,000 crore.
Muthoot Microfin, which raised ₹960 crore, was oversubscribed 12 times and the listing is expected on Tuesday. The issue was priced at ₹277-₹291 a share with a lot size of 51 shares. The existing promoters had offloaded shares worth ₹200 crore in the IPO. It was the fourth largest microfinance company in terms of gross loan portfolio.
Auto components maker Happy Forgings issue of ₹1,008 crore was subscribed 82 times driven largely by high demand from institutional buyers. The issue that was priced at ₹808-850 a share had an offer for sale portion worth ₹608 crore.
The smallest of the issues, RBZ Jewellers raised ₹100 crore and the issue subscribed 17 times. The public offer, which closed on Thursday, comprises only of fresh issues of shares and there was no offer for sale component. The price band for the issue was fixed at ₹95-100 a share with lot size of 150 equity shares followed by multiples of 150.
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