After a strong performance in the primary market, seven stocks, which totaled 5,820 crore, will face critical listing test over the next seven trading days.
These actions will be tested in the context of the disappearance of listing gains for some of the scripts listed above due to the many uncertainties on the economic front and the rise of the Covid Omicron variant.
Shriram Properties and Mapmy India, which together raised 1,640 crore yen, will be listed on Monday and Tuesday respectively, followed by Metro Brands, MedPlus Healthcare, Data Pattern, HP Adhesive and Supriya Lifescience. Unlike the previous one, it wasn’t a runaway success for all the IPOs that hit the primary market this month.
The aftermarket turmoil affected sentiment and Metro Brands, backed by Rakesh Jhunjhunwala, struggled through and was fully subscribed on the last day of the show. RateGain Travel and Technologies debuted Friday with a 20% loss to 340 yen from the issue price of 425 yen. In fact, many IPOs that hit the market this year are trading around 40% below their issue price.
Windlas Biotech, which sold its shares at 460 a coin through an IPO in August, closed at 275 on Friday, while shares of multi-channel automotive platform CarTrade Technology, which has been underwritten 20 times, closed at 904 on Friday, a steep 44% discount to its issue price of 1,618.
VK Vijayakumar, chief investment strategist, Geojit Financial Services, said the dramatic rally since last April has drawn millions of new investors to the stock market and IPOs have been taken with no regard for fundamentals.
Given the latest trend, only quality IPOs will get a good response from investors and some might even be postponed for fear of a bad response.
The benchmark Sensex has lost 2,996 points in the past month as foreign portfolio investors made profits amid the spread of the Covid Omicron strain. The possibility of the US Federal Reserve gradually raising interest rates added fuel to the fire.
Shrikant Chouhan, head of equity research, Kotak Securities, said stock markets fell 2.5% last week amid Omicron concerns, while central banks in developed markets recognized the need for ‘political action in the face of persistent inflation.
The RBI is expected to start normalizing its accommodative monetary policy early next year, subject to inflation, he added.
Fund raised during the IPO
- Properties of Shriram ₹ 600 crore
- MapmyIndia ₹ 1,040 crore
- Metro Brands 1,368 crore
- Medplus Healthcare 1,398.30 crore
- Data model ₹ 588 crore
- HP Adhesive ₹ 126 crore
- Supriya Lifescience ₹ 700 crore