Is IPO buzz dying, or there’s still steam left?
This week, two IPOs are launching, one healthcare company and another is a specialty chemical manufacturer. The two will together raise a total of Rs 2,465 crore from the public market on September 1.
There were hardly any popular listings post-Zomato. However, other small-to-medium sized companies approached the stock market. The next-in-line are Vijaya Diagnostic Centre and Ami Organics. Both these issues will conclude on September 3.
A Little About the Upcoming IPOs
Vijaya Diagnostic Centre is South India’s prominent diagnostic chain. The price band is set at Rs 522-531 per share. The issue is entirely an offer for sale (OFS) of 35,688,064 equity shares by the promoters, Dr S Surendranath Reddy and investors Karakoram and Kedaara Capital Alternative Investment Fund. The shares are likely to list on the stock exchanges on September 14. On the other hand, Ami Organics’ price band is set at Rs 603-610 per share. The public offering consists of a new issue of equity shares worth Rs 300 crore and a promoter and existing shareholder offer for sale (OFS) of up to 6,059,600 shares.
Is IPO buzz over?
A-list companies like Mobikwik, Paytm, Nykaa, PolicyBazaar etc., have filed their IPO papers with SEBI. All these companies are expected to launch their IPOs this year itself. Investors feel that the IPO buzz died since 5 out of 8 public offerings in August saw a lukewarm listing. In fact, the bundling of too many IPOs led to a discounted listing. Experts feel that the sentiment will improve when the well-valued IPOs will hit the market. There is a lot of steam left right now, considering all the big ones are preparing themselves before the big opening.
Closing Comments
So far this fiscal year, 20 companies have generated more than Rs 45,000 crore through initial public offerings (IPOs). There are still four months left for this year to end, and a list of well-valued IPOs are in line to get listed. Companies that are expected to launch public offerings this month are Arohan Financial Services, Penna Cement, Shri Bajrang Power and Ispat Limited. It’s believed that the IPO frenzy will continue, given the high retail and high-net worth individuals (HNI) participation. Also, robust quarterly earnings will further boost the IPO pipeline.
Teji Mandi (TM Investment Technologies Pvt. Ltd.) is a SEBI registered investment advisor. Information in this article should not be construed as investment advice. Please visitwww.tejimandi.com to know more.