Dalal Street To Remain Busy This Week With The New Listings And IPO Launches
Introduction: Dalal Street is set to remain busy this week with six companies lining up to launch their Initial Public Offerings (IPOs) and five new listings. It is expected to be one of the busiest weeks in terms of primary market activity, as investors will have a handful of choices while venturing into Indian equities.
This blog post provides an overview about these upcoming business deals, along with an analysis on potential opportunities for investors who are looking forward towards investing in stocks and IPOs.
Additionally, it also takes a look at what kind of impact the new listings and IPOs may have on the stock markets going forward– from increased trading volume to rising investor sentiment.
Get ready — because this article dives into all that you need to know about IPO & listing events on Dalal Street!
Synopsis
Overview of Dalal Street Activities This Week
This week marks a busy period for the securities market as Dalal Street sees five new entrants in the equity markets with maiden public offerings. Indian Renewable Energy Development Agency (IREDA), Tata Technologies, Gandhar Oil Refinery India, Fedbank Financial Services, and Flair Writing Industries are all gearing up to make their mark on the exchange.
Businesses have been keen to leverage the Indian capital markets to attract investment by going public through IPOs that ensure quick distribution of funds from institutional investors like FIIs, HNIs and NRIs with minimal paperwork or risk associated with loans/debit/credit orders.
With SME segment finally getting an opportunity to raise funds through tokenized offerings known ASBA investing based on cheques or net-banking is also gaining traction. Mutual fund investments too witnessing major participation stories making startups go mainstream.
New Listings
This week, five new companies will be making their debut on the Dalal Street markets — Indian Renewable Energy Development Agency (IREDA), Tata Technologies, Gandhar Oil Refinery India, Fedbank Financial Services and Flair Writing Industries.
Indian Renewable Energy Development Agency (IREDA)
The Indian Renewable Energy Development Agency (IREDA) is a Mini Ratna government company dedicated to promoting and developing renewable energy in India. Established in 1987 as a non-banking financial company, the state-run organization offers unique investment opportunities to investors looking for exposure to this growing sector.
This week most likely by Wednesday 29th November 2023, IREDA will hit the stock exchanges BSE, NSE with an objective of raising Rs 1,290 crore through fresh issue of shares that will augment capital.
The IREDA IPO offers an array of potential investment benefits such as renewable play on climate needs and growth position it takes towards assisting its clients in achieving their green goals by providing finance for new project developments or business expansion related to renewables such as solar power plants or wind turbine installations.
Tata Technologies
Tata Technologies, part of the Tata Group conglomerate, is a global technology leader specializing in engineering and digital solutions for industries such as automotive, industrial eqipment, aerospace & defense.
Having recently won its maiden order from an automotive giant worth ₹2 billion ($28 million), the company made headlines when it announced that it will be launching India’s biggest public offering this week with its IPO estimated at ₹20.283 billion ($285 million).
This marks the first-ever IPO by a Tata Group entity and investors are eagerly awaiting to invest in what has been hailed as a “momentous occasion” for both the group and Indian markets.
Tata Technologies most likely to get listed in BSE and NSE by 30th November 2023. Allotment status shall be verified in BSE.
Gandhar Oil Refinery India
Gandhar Oil Refinery India, part of the five companies aiming to raise nearly Rs 7400 crores through IPOs this week has mono-focused on raising ₹500.69 crore in total for equity shares from the public markets.
The IPO price band is set at Rs 160-169 per equity share and was subscribed 64.07 times on its final date. Moreover, ninety lakhs of the allotted Anchor bid quota were taken during pre-openings itself at a price of ₹169 each by institutional investors taking 30% size of the total issue size off board ahead of listing day boosting investor sentiment and motivating even small retail investors to participate in this iconic IPO launch! With such an overwhelming surge in subscription proves that there are long term investment opportunities lying down this path due to which it may pave a way for increased trading volume as well leading to market volatility while instilling confidence among investors with their research chops rather than just blind faith for investing among novice traders alike.
The basis of allotment will get finalized by 30th November 2023 and the firm most likely to get listed by 5th December 2023.
Fedbank Financial Services
Fedbank Financial Services is launching its Initial Public Offering (IPO) last week, aiming to raise over ₹1,092 crore in capital. The company will issue and sell 7,80,18,866 equity shares through the listing; a portion of the funds raised are earmarked for fresh equity Issue worth Rs 600 crore along with an offer for sale.
Fedbank Financial Services Ltd is a non-banking lending subsidiary of Federal Bank and listing its shares on NSE and BSE will allow the company tap into new sources of liquidity and also avail various benefits that come up with public floatation such as enhanced visibility & credibility among peer companies.
Investors may find IPO opportunities from Fedbank Financial Services attractive due to their potential favorable return prospects. This IPO launch can be seen as good news by investors who are looking for more options in investments which have been fewer after Covid19 crisis hit markets worldwide.
The basis of allotment to get complete by 30th November 2023 and the probable listing date would be 5th December 2023.
Flair Writing Industries
Flair Writing Industries recently opened its initial public offering (IPO) on November 22 and closed it on November 24, attracting subscriptions worth Rs 177.9 crore from investors through an anchor book.
Flair is a well-known writing instruments manufacturer in India, involved in the development and production of pens, markers and pencils. The company’s IPO was set to list its shares on both exchange houses – BSE & NSE – which will happen on December 5.
The primary objective of the IPO for Flair Writing Industries is to raise funds that will be used for repaying existing debt and meeting working capital requirements among other corporate purposes from available resources.
Its potential listing can potentially create more liquidity opportunities for retail investors as well as market players by creating new investment avenues while acquiring seasoned assets.
Note: As part of T+3 timeline, all of the above closed IPOs should get listed in NSE and BSE by this week. Considering 27th November 2023 Monday as market holiday, the listing may vary which we need to wait and watch.
IPO Launches
This week, Dalal Street will witness the introduction of several IPOs through the SME segment from companies varying in business sectors.
SME Segment
The SME segment of the Indian stock market has been gaining traction with increased interest from retail investors, especially since last year. Companies looking to go public via an IPO usually place their offer in either the Main Board or SME segments depending on their size and requirements.
An equity share placement for an SME listing is legally recognized as a “public issue” according to Section 67 (1) (i), Chapter XII of SEBI’s Regulations Act 1992.
This week will see several new IPOs launch in this segment with companies like Pentagon Rubber, Swashthik Plascon, Graphisads Limited and AMIC Forging Limited set to pave the way for other businesses that are interested in joining Dalal Street by listing themselves through an initial public offering.
Potential Impact on Market
The market can expect heightened trading volume and volatility in the after-market sessions post new listing and IPO launches; investors’ sentiments could be impacted based on both long-term investment perspectives or simply short-term liquidity goals.
Increased Trading Volume
The presence of Initial Public Offerings (IPOs) and new stock listings on Dalal Street this week will result in an influx of investor participation, thus increasing the overall trading volume.
Higher volumes can indicate that more traders are looking to buy and sell stocks which could influence or move prices significantly for specific stocks. When investors find opportunities they believe offer possibilities for better-than-average returns, an increased total trade amount typically follows due to eagerness around the buying opportunity.
This turn of events has potential to create market volatility as prices rapidly fluctuate depending upon current supply and demand dynamics which may then affect stock prices accordingly.
In addition, with higher trading volume comes greater liquidity which is beneficial because it allows investors greater flexibility when buying or selling shares on a given security since orders aren’t subject to extreme delays caused by lack of liquidity in markets.
It also increases competition between buyers and sellers for the underlying assets, pushing closer towards equilibrium values where fair value naturally exists as determined by economic conditions like growth rate prospects etc., making assessing true worth somewhat easier.
Market Volatility
As stock markets become increasingly interconnected by fear and greed, volatility is often present. Market volatility refers to large fluctuations in prices over a short period of time.
It can be driven by factors including economic uncertainty, market sentiment shifts, geopolitical tensions, or even rumors or speculation around the next earnings report announcement.
During periods of high volatility investors should proceed with caution as the rapid price movements both result from and induce greater levels of risk for interested parties.
Fortunately there are strategies available that can assist investors in leveraging times of heightened activity on Dalal Street such as wise use of stop-loss orders to reduce potential losses or shorting stocks if they recognize an impending downtrend shortly before it occurs.
Investors must also acknowledge their own personal risk tolerance when formulating investment plans and utilize methods such as dollar cost averaging which allow them to benefit from volatile swings without sacrificing all capital at once.
Investor Sentiment
The recent global market sell-off, resulting in investors losing Rs 7.3 lakh crore due to economic and geopolitical concerns has impacted investor sentiment across the board. The movements of Foreign Institutional Investors (FIIs), along with new Initial Public Offerings (IPOs) are expected to affect trading volume and volatility in India’s equity markets this week.
In addition, corporate earnings will play a huge role in determining market sentiment, being one of the most important factors that affects investor behaviour.
FII flows and IPO action are often used as a barometer of investor sentiment; these activities can create short-term shifts in trading volumes while broader stock trends depend more upon earnings report releases from companies listed on Dalal Street exchanges such as NSE or BSE across different sectors like energy, automotive manufacturing etc. This could increase liquidity for some stocks leading to higher demand and improved prices or drive down prices depending upon overall fundamentals present by each company respectively.
Analysis of New Listings and IPO Launches
A detailed assessment of these offerings must be conducted to evaluate the respective company profiles, market expectations and potential risks or opportunities for investors.
Company Profiles
- Indian Renewable Energy Development Agency (IREDA): Established in 1987, IREDA is a public sector enterprise headquartered in New Delhi, India. It is the government-funded entity under the Ministry of New and Renewable Energy to promote renewable energy technologies, including finance, manufacturing, research & development for energy projects.
- Tata Technologies: An Indian multinational information technology services and engineering consultancy company founded in 1989 with headquarter in Mumbai, India. It provides IT products such as product lifecycle management software, automotive engineering design services EPC service providers and industrial equipment manufactures services all over the world.
- Gandhar Oil Refinery India: This refinery giant was established in 1984 and is located near the Kutch coast of Gujarat state, India. It focuses on refining crude oil into quality petroleum products such as diesel, kerosene jet fuel, petrol etc., with overwhelming market presence in Gujarat as well as neighbouring states like Madhya Pradesh and Maharashtra.
- Fedbank Financial Services: It is one of the largest private sector banks in India founded by late Sri K P Hormis Tharakan in 1967 under different heads like digitization banking operations across 1000+ branches by the latest technology and innovative products which caters to urban & rural markets nationwide mostly for retail banking solutions offered through its associate companies for e-commerce related activities .
- Flair Writing Industries: Founded in 1999 the business commenced with production facility for ball pens & Gel Pens until 2004 after which it diversified into Parker Pens & other corporate gifting product categories including pen sets, desktop stationery items catalogues etcs.
Market Expectations
Dalal Street is expected to be an exciting and busy place this week with the launch of several new listings and IPO launches. As these companies prepare to enter the markets, analysts have begun to speculate upon what potential opportunities or risks may exist for investors, particularly those that are considered beginners or inexperienced in stock trading.
Though difficult to predict with accuracy how any company will perform on its initial listing day, there are certain indications and trends which can allow us to analyze how a company might fare after they go public.
Generally speaking, market expectations focus on the underlying fundamentals of a company such as profits generated over the previous years, current management strategies being employed by executives, product offerings etc., all of which could affect its future performance.
Additionally, analyzing broader economic trends or political developments that could influence economic circumstances surrounding a particular industry may also form part of market analysts’ forecasts.
Potential Opportunities for Investors
The upcoming week is presenting a number of potential opportunities for investors on the Dalal Street through its new listings and IPO launches. The five initial public offerings (IPOs) include companies like Swashthik Plascon and Graphisads Limited, each offering unique selling points for prospective traders.
These listings may provide promising long-term investments with high dividend rates, capital appreciation potential, or even increased trading volume that could serve as lucrative options in different market scenarios.
At the same time, these investments come with elements of risk that need to be considered; certain IPOs may offer higher returns but have more volatile stock prices than others while some debutants might not manage to penetrate an already saturated market sector successfully.
Conclusion
The upcoming IPO launches and new listings on Dalal Street in the week ahead are expected to bring a significant level of activity for traders, investors, and other market participants.
With five maiden public offerings expected to mobilize over Rs 7400 crore and seven IPOs mop-up another Rs 110 crore, there will be no shortage of opportunities or potential risks for investors.
Companies such as IREDA, Tata Technologies, Gandhar Oil Refinery India, Fedbank Financial Services Ltd, Flair Writing Industries Limited ,and IdeaForge Technology have all made their plans to launch new IPOs before next month’s end.
Whether these investments translate into returns is something that only the future can tell – but one thing is certain: both novice and experienced investors should exercise caution while navigating Dalal Street this week as volatility could remain high with so many new listings replenishing the markets.
FAQs
1. What is the Dalal Street?
The Dalal Street is India’s leading stock market for trading securities including bonds, commodities and mutual funds.
2. How busy will it be this week with listings and IPO launches?
This week will be a bustling one on the Dalal Street with new companies going public through their Initial Public Offerings (IPO) and existing companies listing shares in exchanges anew.
3. Who should invest in such IPOs or Listings?
Investors are advised to seek professional financial or investment advice before investing in any IPO or listing, as market conditions vary greatly from company to company and investor to investor.