However, the list is dominated by SMEs as only about 49 mainboard IPOs have debuted in the year and another batch of 8 issues – Inox Limited, Muthoot Microfin, Motisons Jewellers, Suraj Estate, Happy Forgings, RBZ Jewellers, Credo Brands and Azad Engineering – are hitting the Street this week itself.
The much-awaited IPO of Tata Technologies undoubtedly earns the award of best debutant of 2023. The stock not only doubled on listing day itself but is still trading around 148% higher from the issue price. The Rs 3,034-crore IPO also managed to break LIC’s record by garnering a record number of 73.58 lakh applications.
Although Honasa Consumer, which owns Mamaearth, also aroused interest, the stock had a series of flip-flops. After a muted listing last month, the counter fell to Rs 256 but was now trading not just above the issue price but also above the 400-level.
The biggest IPO of the year was that of Mankind Pharma (Rs 4,326 crore), the shares of which listed at a healthy 20% premium in May. The stock is now trading 75% above its issue price of Rs 1,080.
JSW Infra’s Rs 2,800 crore IPO also gave fantastic returns as it is trading 95% above its issue price.
Within the mainboard pack, top performing IPOs are Cyient, Senco Gold, IREDA, EMS, Tata Tech, Utkarsh SFB, Vishnu Prakash Punglia and Signature Global.“The success of an IPO is intricately tied to the prevailing market sentiments, and since March 2023, the market has witnessed robust bullish trends. This surge can be attributed to a robust macroeconomic outlook coupled with a substantial influx of domestic liquidity. The favorable conditions have prompted promoters to seize the opportunity and capitalize on the buoyant market sentiments, leading to a flurry of IPOs across both the mainboard and SME sectors,” said Sunil Nyati, Managing Director, Swastika Investmart.
The surge in retail investors’ participation, coupled with daily market highs, has infused newfound liquidity into the public market, said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors.
Despite big listings of Tata Tech and Mamaearth, SME IPOs managed to attract a lot of attention from retail investors as at least 13 of them doubled on listing day itself. More than 65 companies have filed IPO papers with Sebi, out of which 25 have already received the regulator’s nod.
“The buoyant trend in the IPO market is poised to persist into 2024, encompassing both the mainboard and SME segments. A substantial lineup of companies is eagerly awaiting their turn to debut in the public markets, underscoring the sustained enthusiasm for IPOs. The robust momentum in the Indian equity market, characterized by a strong bullish trajectory, is anticipated to endure throughout 2024,” Nyati said.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)