IPO pulse on D-Street: ₹2.5 lakh crore raised by 5 issues in week-long frenzy
Investors on D-Street placed bids worth a total of ₹2.59 lakh crore in the five recently concluded mainboard initial public offerings (IPOs). The week-long bidding frenzy gripped investors as the five companies -Tata Technologies Ltd., Gandhar Oil Refineries Ltd., Fedbank Financial Services Ltd., Flair Writing Industries Ltd, and Indian Renewable Energy Development Agency (IREDA) Ltd sustained the IPO pulse in India’s primary markets.
Analysts noted that the week ending November 24 was one of the busiest weeks for primary market in recent years, as the five mainboard IPOs opened to raise ₹7,377 crore.
‘’The huge appetite for equities stems from the confidence that investors have in the India growth story and the large universe of fast-growing, well-managed companies, which expected to deliver good profits,” said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors Pvt. Ltd. – a mid-market investment bank.
Out of the ₹2.5 lakh crore bids placed, Tata Technologies garnered the biggest share with ₹1.56 lakh crore worth bids placed in the three-day issue. Tata Technologies IPO was oversubscribed by 70 times on the final day.
Tata Technologies IPO attracted massive interest from investors as it is the first issue from the Tata Group after nearly 20 years. Tata Consultancy Services (TCS) was the last IPO from the Tata Group which got listed on the bourses in 2004.
Coming to IREDA IPO – India’s first PSU IPO in 18 months – became the seventh most subscribed PSU IPO over the last decade. IREDA IPO was subscribed 39 times in the issue that closed on Thursday. Bids worth ₹58,471 crore were placed during the bidding period of the PSU issue.
On the other hand, the Fedbank Financial Services IPO witnessed a comparatively muted response, compared to the other mainboard IPOs this week. Fedbank Financial Services IPO closed with an overall subscription of 2.20 times on the final day.
Additionally, Flair Writing Industries IPO saw bids placed for 67.27 crore shares worth over ₹20,000 crore and the issue was subscribed over 46 times on the final day. Bids worth ₹20,454 crore were placed in the three-day issue.
Leading manufacturer of white oil – Gandhar Oil Refinery also saw robust response from investors in its public issue. Bids worth ₹23,000 crore were placed and Gandhar Oil Refinery IPO was subscribed over 64 times on the third and final day of its issue.
Earlier this year, capital markets regulator Securities and Exchange Board of India (SEBI) had announced the reduction in the timeline for listing shares on stock exchanges following the closure of IPOs. The regulation has cut the listing timeframe from the extant T+6 to T+3.
‘’Reduced timeline means that investor money would be blocked for a shorter duration of time while for a company. Investors now have the opportunity for having early credit and liquidity for their investment, which enable investors to analyse and participate in more number of IPOs opening parallel, as we gear for bigger capital formation,” added Lunawat.
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Updated: 24 Nov 2023, 09:31 PM IST
