The upcoming week, commencing November 28, promises an active primary market, featuring the listing of seven companies. Among these, five companies will be entering the mainboard segment, while five IPOs are set to open for subscription.
Following the successful closure of eagerly anticipated IPOs from Tata Technologies, Indian Renewable Energy Development Agency (IREDA), Gandhar Oil Refinery India, Fedbank Financial Services, and Flair Writing Industries last week, these companies are poised to make their market debut on both the BSE and NSE within the T+3 timeline.
In August of this year, the Securities and Exchange Board of India (SEBI) mandated companies launching IPOs from September to opt for voluntary listing in the T+3 timeline, a departure from the previous T+6 timeline. This change will become obligatory for all companies initiating IPOs starting December 1, 2023.
IREDA is poised to lead the listing on the stock exchanges on November 29, with the confirmed issue price set at Rs 32 per share. The basis of allotment for the IPO shares was finalized on November 24, and investors can now verify their share allotment status on either the BSE website or the IPO registrar portal.
The equity shares of IREDA are anticipated to be credited to demat accounts by November 28, a day ahead of the scheduled listing. During the subscription period from November 21 to 23, the IPO received robust demand, with qualified institutional buyers oversubscribing 104.57 times their allotted quota, high net worth individuals (HNIs) 24.16 times, retail investors 7.73 times, and employees 9.8 times their reserved portion. Overall, the offer was subscribed 38.8 times, indicating significant investor interest.
The remaining four companies—Tata Technologies, Gandhar Oil Refinery India, Fedbank Financial Services, and Flair Writing Industries—are set to list their shares on both the BSE and NSE on November 30, following the closure of their public issues on November 24. These offers were open for subscription starting from November 22.
By November 28, all four companies are expected to finalize the basis of allotment for their IPO shares, with the transfer of equity shares to the demat accounts of successful investors slated for November 29.
The Tata Technologies IPO, marking the first from the Tata Group in over 19 years, received an overwhelming response from investors. The offer was oversubscribed 69.4 times, with qualified institutional buyers and high-net-worth individuals subscribing 203.41 times and 62.11 times their allotted quotas, respectively. The IPO raised Rs 3,042.51 crore at an issue price of Rs 500 per share.
Gandhar Oil Refinery India’s IPO, focused on white oils manufacturing, garnered a subscription of 64.07 times. Meanwhile, Flair Writing Industries, a manufacturer of writing instruments, saw its IPO oversubscribed 46.68 times. However, Fedbank Financial Services, a non-banking finance company, experienced a lower response from investors, with the offer subscribed just 2.2 times.
In the grey market, an unofficial platform for trading in the IPO shares till the listing, Tata Technologies attracted the maximum premium, at 80 percent over the issue price of Rs 500 per share, amongst five companies, while IREDA IPO shares traded with around 30 percent premium, Flair Writing over 25 percent premium and Gandhar Oil Refinery quoted with more than 40 percent premium, but Fedbank saw muted action, analysts on anonymity said.
SME Segment
Meanwhile, the rest of the action will be taking place in the SME segment (small and medium enterprises), as a total of five IPOs will be opening for subscription during the coming week.
Colorants manufacturing company Deepak Chemtex’s Rs 23-crore initial public offering will be opened between November 29 and December 1, with a price band at Rs 76-80 per share, while forged components maker AMIC Forging will also be opening its public issue during the same period, with a price band of Rs 121-126 per share and intends to raise Rs 34.8 crore.
The Rs 10.25-crore offer by Chennai-based Net Avenue Technologies, the online digital direct-to-consumer business for Indian ethnic wear and accessories, will be opened on November 30, with a price band of Rs 16-18 per share. The closing date will be December 4.
Further, the bidding for the Rs 53.4-crore Graphisads IPO will also start on November 30 and will close on December 5. It is a fixed price issue with a price of Rs 111 per share. It is a marketing, advertising, and communications agency.
Marinetrans India will be the last maiden public issue in the SME segment next week, opening on November 30 and closing on December 5. The company that provides transport management and freight-related services aims to mobilize Rs 10.92 crore via public issue at a price of Rs 26 per share.
Swashthik Plascon, the PET bottles, and PET preforms manufacturer, will be closing its Rs 40.76-crore offer on November 29, with a price band at Rs 80-86 per share. The issue was subscribed 44 percent on debut, i.e. November 24.
Apart from this, Arrowhead Seperation Engineering will be listing its shares on the BSE SME on November 28 after its IPO getting more than 90 times subscriptions during November 16-20, while Rocking Deals Circular Economy will debut on the NSE Emerge on November 30.
The Rs 21-crore public issue by Rocking was subscribed over 210 times during November 22-24 and the offer price has been finalised at Rs 140 per share.