After six IPOs raised Rs 14,629.5 crore in July, 18 IPOs likely in August
Euphoria in the primary markets is likely to continue in August as well and the number of IPOs both in value and volume can surpass July’s tally
Fund-raising through equity issuances via the initial public offer (IPO) route saw a 47% jump during the last month as six companies cumulatively raised Rs 14,629.50 crore through their IPOs in July compared to 5 companies raising Rs 9,922.92 crore in the month of June 2021.
Six companies that hit the street in July are Clean Science And Technology, GR Infraprojects, Zomato (being the largest so far), Tatva Chintan Pharma Chem, Glenmark Life Sciences and Rolex Rings, raised Rs 14,629.5 crore, taking the total to Rs 53,590 crore so far in 2021.
IPO performance
Nureca, MTAR Technologies, Easy Trip Planners, Tatva Chintan Pharma Chem, GR Infraprojects, Laxmi Organic Industries and Stove Kraft turned out to be multibaggers for investors as their prices have galloped anywhere between 100-350% since listing.
Clean Science And Technology, Macrotech Developers, Zomato, Barbeque-Nation Hospitality, Indigo Paints, Nazara Technologies, Sona BLW Precision Forgings, Railtel Corporation Of India, Krishna Institute of Medical Sciences, Dodla Dairy, Shyam Metalics And Energy, Craftsman Automation and Anupam Rasayan India delivered 30-90% returns.
Whereas Brookfield India Real Estate Trust REIT, Indian Railway Finance Corporation, Kalyan Jewellers India and Suryoday Small Finance Bank were wealth destructors slipping upto 33%.
While Glenmark Lifesciences and Rolex Rings are slated to list on the exchanges in first week of August.
IPO frenzy
On the subscription front nine IPOs MTAR Technologies, Nazara Technologies, Easy Trip Planners, Shyam Metalics, Indigo Paints and Laxmi Organic Industries, GR Infraprojects, Tatva Chintan Pharm Chem and Rolex Rings saw a robust response from investors as they were subscribed over 100 times.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the performance of the IPO market usually has a strong correlation to the performance of the secondary market.
“If the stock market is bullish, it attracts a large number of investors into IPOs. Particularly, new investors lured by high potential profits, get attracted to new offers and the IPO market has always done well during market booms,” added Vijayakumar.
What’s next
The euphoria in the primary markets is likely to continue in August as well and the number of IPOs both in value and volume term can surpass July’s tally. Experts said about 18 companies could raise about Rs 28,000 crore through their IPOs in August. Windlas Biotech, Devyani International, Exxaro Tiles and Krsnaa Diagnostics are scheduled to open their IPOs on August 4 and will raise Rs 3,614.39 crore in the first week of August.
Companies like Cartrade Tech, Nuvoco Vistas Corp, Medi Assist Healthcare Services, Chemplast Sanmar, Ami Organics, Vijaya Diagnostic Centre, Penna Cement Industries, Aditya Birla Sun Life AMC, Utkarsh Small Finance Bank, Fincare Small Finance Bank, Paras Defence and Space Technologies, Seven Islands Shipping, Aptus Value Housing Finance and Supriya Lifescience are in final stages of launching their IPO.