August I also saw several new age companiesincluding prominent names like Ola Electric, Unicommerce and Brainbees Solutionstaking advantage of public markets.
The long awaited IPO Ola Electric managed to raise around Rs 6,145 crore, but investor demand was mixed, resulting in 4x oversubscription. This was reflected in the company’s listing, which missed expectations.
However, after its debut, the company’s shares doubled in value, rewarding investors in the secondary market. Although the stock subsequently posted profits, it is currently trading 56% above the offering price.
Brainbees Solutions, which operates the FirstCry platform, also launched its Rs 4,193 crore IPO in August and received a good response from investors. Since its debut, the stock has performed well, showing a gain of 38% compared to the offer price. Among the internet companies, Unicommerce stole the limelight with its IPO being subscribed over 100 times. This strong sentiment continued in its market debut, where the stock traded at a remarkable 118% premium, making it one of the best performing companies on the street. Overall, a total of 8 companies made their debut on the street in August, with only one negative debut. Ceigall India.
SME market
The SME market also saw significant activity, with 20 companies launching their public offerings in August, despite concerns about regulation and caution among advisers.
The SME market kept pace with the blue-chip IPO segment, with 20 companies launching public offerings in August despite regulatory concerns and caution from market advisors.
Around 22 SMEs raised a cumulative total of Rs 758 crore in August, making it the third best month this year for capital This wave of activity highlights the resilience and optimism within the SME sector, even amid a more cautious market environment.
As expected, subscription numbers skyrocketed, with eight IPOs receiving responses of 300 or more times. Aesthetic engineers topped the list with a subscription rate of more than 700 times, closely followed by Braceport Logistics with a demand of 657 times.
The price cap on SME platforms limited listings to a maximum of 90%. However, the post-listing surge saw eight companies post multibagger returns on the first day.
What’s next?
He IPO Market The industry has recently seen a remarkable rebound, driven by market confidence and strong economic growth. In August alone, 17 companies submitted DRHP applications to the regulator, the highest number of monthly applications in more than a year.
Analysts anticipate that the IPO market will remain vibrant for the remainder of the year due to these favorable market conditions.
“The IPOs that have come out recently have performed exceptionally well, boosting the confidence of both companies and investors. This renewed optimism is prompting investors to look for opportunities in the primary market and promoters to raise funds through IPOs. Foreign investors are also preferring India’s primary market for its potential for higher returns,” said Pantomath Capital Advisors.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of The Economic Times)
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