India’s primary market is showing no signs of slowing down, even after mopping-up ₹1.5 lakh crore from investors this week. An eclectic mix of companies are hitting the primary markets ranging from ‘gathia’ (Gujarati snack) makers, apparel brands to marketing agencies will make their case for investors in the coming months.
This flow of new IPOs will continue to hit the market, experts predict, thanks to the stellar response received of the issues that hit this week. All IPOs, barring the Fedbank Financial Services issue, were subscribed at least twice over on the first day. Tata Technologies offering was lapped up like hot cakes on a winter morning as it was swiftly overbooked within hours.
Investors Have Come Through
Munish Aggarwal, managing director of Equirus Group tells Business Insider India. “In fact, a lot of them were launched parallelly because there is a lot of equity in the market. QIBs are very active too,” he comments. The QIB quota of four of five IPOs live this week, barring Fedbank, were subscribed over 100 times the shares on offer.
Until Elections do us apart
Next week, there will be a breather to the mainboard IPO rush, but five SME issues will be live. Going the number of draft red herrings filed 48 companies in the first half of FY24, the IPO party might roll over to the next year too.
Consumer-Centric Companies
Consumer-centric companies like ghatia-maker Gopal Snacks, Choice Brands which sells men’s apparel, marketing agency Graphisads, Net Avenue Technologies that sells Indian ethnic wear directly to consumers are some of the issues that will make a bid for investors.
Upcoming Public Issues
Upcoming public issues include Gopal Snacks, Choice Brands, Graphisads, Net Avenue Technologies, Deepak Chemtex, AMIC Forging, and Swashthik Plascon.
Listing Gains in Focus Next Week
If the grey market premiums are anything to go by, next week will be much better for the issues that were open this week. Analysts say that those who missed out on share allotment due to heavy oversubscription might try to buy from the secondary market – and that’s pushed the listing gains expected for issues live this week — anywhere between 23-78%.
No business is too small or too niche for investors who are all set to buy into the India growth story. Institutions as well as retail investors are ready to make their bets on new, fast-growing companies. And, IPOs are coming for them.