In the fast-paced world of finance, initial public offerings (IPOs) are a beacon signaling growth and opportunity. Yet for many investors, navigating this terrain feels akin to decoding an enigmatic puzzle fraught with unpredictability.
IPO Weekly Wrap – This week’s IPO activity is a testament to the market’s vitality, highlighted by eight major mainboard IPOs captivating the investment community’s attention and underscoring an enduring appetite for new equity ventures.
Of particular note is Motisons Jewellers staggering 159.61 times subscription rate—a clear indicator of investor enthusiasm, setting an optimistic tone for what lies ahead. Stay tuned as we unwrap the nuances of this week’s IPO landscape, you won’t want to miss it.
Key Takeaways
- Eight new mainboard IPOs opened for subscription, with three listings beginning to trade this week. This shows a lot of action in the stock market for new companies.
- Investors were very excited about some IPOs, like Motisons Jewellers which was subscribed 159.61 times. Happy Forgings and Azad Engineering also saw lots of interest.
- Three companies that started trading did great on their first day. India Shelter Finance shares jumped up by 25.7 percent, DOMS Industries by 77.2 percent, and Inox India by 43 percent over their offering prices.
- There is so much interest from everyone – big professional investors called QIBs, rich people known as high net-worth individuals, and regular folks too (retail investors). They are all getting into these new share sales.
IPO Weekly Wrap
8 mainboard IPOs opened for subscription this week, with 3 mainboard listings also taking place. The stock market saw a surge in activity and interest in IPO debuts, signaling a strong start to the new year.
Mainboard IPO Market Activity
8 mainboard IPOs opened for subscription
Mainboard IPO market activity is heating up. Last week, investors showed keen interest as eight new mainboard IPOsopened for subscription. Here’s a closer look at the activity:
1. Motisons Jewellers
- The Initial Public Offering (IPO) of Motisons Jewellers saw an overwhelming response from investors, with the subscription reaching 159.61 times on December 20, final day of the bidding.
- This level of participation highlights the confidence and enthusiasm among investors for this IPO.
- The IPO managed to raise Rs 151.09 crore with a price band set between Rs 52-55 and a lot size of 250 equity shares. This indicates both investor trust in the company’s potential for growth and their willingness to invest in it at its initial stages as it enters the stock market.
- Size
- Total Issue Size : 2.08 Crore Shares
- Total Bids : 333.12 Crore Shares
- Subscription details
- Retail Portion subscribed by 122.28 times.
- HNI portion got subscribed by 233.91 times.
- QIB portion got subscribed by 157.4 times.
- Current Grey Market Premium (GMP) stands at 127%
- Caution: Promoter of this stock had involved in IPL betting in the past and also received orders from Bank Securities Fraud Branch, Central Bureau of Investigation, Mumbai (“CBI”) in relation to a loan transactions.
2. Muthoot Microfin
- Muthoot Microfin’s IPO saw strong interest from investors, with the subscription being 11.52 times on the final day of bidding.
- The price band for Muthoot Microfin’s IPO was set at Rs 277-291 per share, attracting significant attention from potential shareholders.
- In addition, the lot size for Muthoot Microfin’s IPO was a minimum of 51 equity shares, allowing for broader participation in the offering.
- Investing enthusiasts and beginner investors should take note of Muthoot Microfin’s successful IPO subscription and its attractive price band for individual equity shares. This highlights the company’s appeal to a wide range of potential investors and presents an opportunity worth considering in the current market landscape.
- Size
- Total Issue Size : 2.43 Crore Shares
- Total Bids : 28.09 Crore Shares
- Subscription details
- Retail Portion subscribed by 7.61 times.
- HNI portion got subscribed by 13.2 times.
- QIB portion got subscribed by 17.47 times.
- Current Grey Market Premium (GMP) stands at 10.3%
3. Suraj Estate Developers
- Suraj Estate Developers’ IPO received overwhelming response from investors, being subscribed 15.65 times, on final day – 20 December 2023. This indicates strong confidence in the company’s growth prospects and management team.
- The IPO successfully raised Rs 400 crore within the price range of Rs 340-360 per share, with a lot size of 41 shares, underlining substantial investor interest in the real estate sector.
- The considerable subscription level reflects a positive market sentiment towards Suraj Estate Developers’ future performance. As an initial public offering that garnered significant attention, this event provides valuable insights for aspiring investors looking to understand market dynamics and gauge public response to emerging opportunities in the stock market.
- Size
- Total Issue Size : 82.35 lakh Shares
- Total Bids : 12.88 Crore Shares
- Subscription details
- Retail Portion subscribed by 9.3 times.
- HNI portion got subscribed by 18.9 times.
- QIB portion got subscribed by 24.3 times.
- Current Grey Market Premium (GMP) stands at 4.17%
4. Happy Forgings
- Happy Forgings recent IPO garnered significant attention from investors, with an impressive subscription rate of 82.07 times. This indicates a strong investor interest in the company’s offering, resulting in the raising of Rs 1,009 crore from the IPO.
- The price band for Happy Forgings’ IPO ranged between Rs 808-850 per share, reflecting a positive response from the market and potential for growth in the company’s valuation.
- Investing enthusiasts can take note of Happy Forgings’ oversubscribed IPO as a prime example of heightened equity market activity and capital raised through initial public offerings.
- Size
- Total Issue Size : 1.18 Crore Shares
- Total Bids : 68.62 Crore Shares
- Subscription details
- Retail Portion subscribed by 15.09 times.
- HNI portion got subscribed by 62.17 times.
- QIB portion got subscribed by 220.48 times.
- Current Grey Market Premium (GMP) stands at 49%.
5. RBZ Jewellers
- RBZ Jewellers’ public offer opened on December 21 and saw a whopping subscription of 16.86 times, showcasing strong investor interest. The price band for the public offer ranged from Rs 95-100 per share, with a lot size starting at a minimum of 150 equity shares.
- This indicates robust demand and confidence in the company’s potential growth, making it an IPO worth noting for investors looking to diversify their portfolios or explore new opportunities in the market.
- Size
- Total Issue Size : 79 lakh Shares
- Total Bids : 13.31 Crore Shares
- Subscription details
- Retail Portion subscribed by 24.74 times.
- HNI portion got subscribed by 9.27 times.
- QIB portion got subscribed by 13.43 times.
- Current Grey Market Premium (GMP) stands at 0%.
6. Credo Brands
- Moving from the successful IPO of RBZ Jewellers, another standout performer in the IPO market was Credo Brands, parent company of Mufti Menswear.
- This IPO witnessed a staggering subscription rate of 51.85 times, as bids were received for 71.27 crore shares against an issue size of 1.37 crore shares.
- The overwhelming interest came from Qualified Institutional Buyers (QIBs), retail investors, and high net-worth individuals who collectively led the subscription in the Credo Brands IPO.
- Size
- Total Issue Size : 1.37 crore Shares
- Total Bids : 71.27 Crore Shares
- Subscription details
- Retail Portion subscribed by 19.94 times.
- HNI portion got subscribed by 55.52 times.
- QIB portion got subscribed by 104.95 times.
- Current Grey Market Premium (GMP) stands at 48%.
7. Azad Engineering
- Highly Engineered Precision Forged and Machined Components maker “Azad Engineering” seen a much impressive subscription of 80.6 times.
- The IPO involves fresh issue of Rs. 240 crore shares and offer-for-sale (OFS) of shares worth Rs. 500 Crore.
- The price band set was Rs. 499 – Rs. 524 per share.
- With successful subscription and pricing details, it presents an intriguing opportunity in the IPO market for investing enthusiasts and beginner investors to consider as they navigate through their investment journey.
- Size
- Total Issue Size : 1.01 crore Shares
- Total Bids : 81.58 Crore Shares
- Subscription details
- Retail Portion subscribed by 23.71 times.
- HNI portion got subscribed by 87.55 times.
- QIB portion got subscribed by 179.66 times.
- Current Grey Market Premium (GMP) stands at 48%.
8. Innova Captab
- Innova Captab, pharmaceutical firm, subscription is still pending for the final day of the closure on Tuesday (26 December 2023). As of 2nd day of bidding, 22 December 2023, the IPO was subscribed 3.54 times.
- The IPO consists of fresh issue of shares worth Rs. 320 Crore and offer-for-sale (OFS) of Rs. 250 Crore.
- The price band for the offer was Rs. 426 – Rs. 448 per share.
- Size
- Total Issue Size : 90.78 lakh Shares
- Total Bids : 3.21 Crore Shares
- Subscription details
- Retail Portion subscribed by 5.02 times.
- HNI portion got subscribed by 3.28 times.
- QIB portion got subscribed by 1.09 times.
- Current Grey Market Premium (GMP) stands at 48%.
3 mainboard listings in the week
Let’s keep the momentum going from the eight IPOs that opened for subscription and dive into the week’s mainboard listings. The activity on the mainboard was buzzing, with three companies making their market debut.
1. India Shelter Finance
- First up, India Shelter Finance: On December 20th, this finance company stepped into the spotlight. Its shares started trading at a 25.7 percent premium, that is Rs. 620, over their initial offering price of Rs. 493.
- That means investors who bought in early saw the value of their shares jump as soon as India Shelter Finance hit the market.
- Earlier, the IPO was subscribed 36.71 times and the company raise Rs. 1200 crore through IPO.
- Retail investors displayed notable interest by purchasing 9.95 times the subscription from their quota.
- QIBs exhibited substantial confidence in the company by subscribing for 89.7 times their allotted shares.
2. DOMS Industries
- Next, DOMS Industries: This player didn’t just enter the field; it scored big. When it listed, its shares were priced 77.2 percent higher than, that is Rs. 1400, what they were first offered at Rs. 790.
- For those keeping track, that’s like getting nearly double your money right off the bat simply because you chose to invest on day one.
- The IPO of DOMS Industries saw a remarkable 93.52 times subscription, highlighting robust investor demand.
- Qualified Institutional Buyers (QIBs) booked a staggering 115.97 times their allotted quota, indicating high institutional interest.
- Retail investors also displayed significant enthusiasm by subscribing 69.65 times over their allotted shares.
3. Inox India
- Then Inox India: They too enjoyed a warm welcome on December 21st with a listing premium of 43 percent, at Rs. 949.65, over the issue price of Rs. 660. However, analyst were expecting a 75% premium over issue price, but market volatility played a key role.
- Picture this: You buy a slice of Inox India during its IPO, and almost half again as much gets added to your investment value when it starts trading.
- This IPO was oversubscribed by 61.28 times, indicating significant investor confidence in the company. QIBs showed particular enthusiasm, subscribing to 147.80 times their allotted quota, while HNIs subscribed to 53.20 times and retail investors subscribed to 15.3 times for the IPO.
Strong Interest in IPOs
Investors showed strong interest in IPOs, with companies like Motisons Jewellers, Happy Forgings, and Azad Engineering generating significant attention. Additionally, there was broad investor interest from QIBs, retail investors, and high net-worth individuals, indicating a promising market for new share sales lined up for the new year.
Individual IPO Subscriptions
Investors showed strong interest in individual IPO subscriptions, with companies like Suraj Estate Developers, Motisons Jewellers, Muthoot Microfin, Happy Forgings, RBZ Jewellers, and Credo Brands drawing significant attention from potential shareholders.
Broad Investor Interest
A broad range of investors, including QIBs, retail investors, and high net-worth individuals, have shown strong interest in the recent IPO market activity, indicating a positive market sentiment and potential for future growth.
If you want to know more about the latest IPO developments and how they could impact your investment strategy, keep reading our IPO Weekly Wrap for all the insightful details.
Please see through our last week IPO Weekly Wrap and Week Ahead edition.
Conclusion
The IPO market saw busy activity this week, with 8 mainboard IPOs opening for subscription and 3 listings taking place. Strong interest was evident in companies like Motisons Jewellers, Happy Forgings, and Azad Engineering.
There’s a positive outlook for the next week on these IPO’s listing. The market continues to show bullish sentiments, making it an exciting time for investors looking to venture into IPO trading.
FAQs
1. What is an IPO?
An Initial Public Offering (IPO) is when a company offers its shares to the public for the first time, allowing individuals to invest in the company.
2. How can I stay updated on upcoming IPOs?
To keep track of upcoming IPOs, you can access financial news websites like us.
3. Should I consider investing in IPOs?
Investing in IPOs can offer opportunities but also involves risks, so it’s important to conduct thorough research and consider consulting with a financial advisor before making investment decisions.
4. How do companies benefit from conducting an IPO?
By going public through an IPO, companies gain access to capital from public investors, which can be used for expansion, acquisitions, debt repayment, or other corporate purposes.
5. Is it possible for individual investors to participate in an IPO?
Yes, individual investors have the opportunity to purchase shares of a newly listed company during its IPO through brokerage firms that facilitate such transactions.