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After a wonderful showing in the primary market, seven stocks, which cumulatively raised ₹5,820 crore, will face the acid test of listing over the next seven trading days.
These stocks will be tested in the backdrop of vanishing listing gains for some of the scrips listed earlier due to the many uncertainties on the economic front and rise of the Covid Omicron variant.
Taking stock
Shriram Properties and Mapmy India, which together raised ₹1,640 crore, will get listed on Monday and Tuesday, respectively, followed by Metro Brands, MedPlus Healthcare, Data Pattern, HP Adhesive and Supriya Lifescience. Unlike earlier it was not a run-away success for all the IPOs that hit the primary market this month.
The turbulence in the secondary market has hit sentiment and Rakesh Jhunjhunwala-backed Metro Brands struggled to sail through and was fully subscribed on the final day of the issue. RateGain Travel and Technologies debuted on Friday with a loss of 20 per cent at ₹340 against the issue price ₹425. In fact, many IPOs that hit the market this year are trading about 40 per cent below their issue price.
Windlas Biotech, which sold its shares at ₹460 a piece through an IPO in August, closed at ₹275 on Friday while shares of multi-channel auto platform CarTrade Technology, which was subscribed 20 times, closed at ₹904 on Friday, at a steep 44 per cent discount to its issue price of ₹1,618.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said the spectacular rally since last April attracted millions of new investors to stock market and IPOs were subscribed without any regard for fundamentals.
Given the latest trend, only quality IPOs will get good investor response and some may even get postponed on fear of poor response.
Market watch
The benchmark Sensex has lost 2,996 points in the last one month as foreign portfolio investors booked profit amid the spread of the Covid Omicron strain. The possibility of the US Federal Reserve raising interest rates in a graded manner added fuel to the fire.
Shrikant Chouhan, Head of Equity Research, Kotak Securities, said the equity markets declined 2.5 per cent in the past week owing to Omicron concerns, while Central banks of developed markets acknowledged the need for policy action in the face of persistent inflation.
The RBI is expected to start normalising its current accommodative monetary stance early next year subject to inflation, he added.
Fund raised in IPO
- Shriram Properties ₹600 crore
- MapmyIndia ₹1,040 crore
- Metro Brands ₹1,368 crore
- Medplus Healthcare ₹1,398.30 crore
- Data Pattern ₹588 crore
- HP Adhesive ₹126 crore
- Supriya Lifescience ₹700 crore
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