Bharti Hexacom Raised ₹4,275 Cr

Not only are secondary markets setting new records, but the primary market is also thriving. Three IPOs closing this week are set to make this the best first half for primary markets in 17 years.

 

As per media report, 38 companies from various sectors such as co-working spaces, furniture retailing, and online ticket booking have raised nearly ₹32,000 crore so far. Among the IPOs, Bharti Hexacom raised the most with ₹4,275 crore, followed by Aadhar Housing Finance at ₹3,000 crore, now trading 85% above its offer price. The smallest IPO was Vibhor Steel Cubes, which raised ₹72 crore.

 

Most of these have been successful, attracting strong investor interest and yielding substantial returns with significant gains. The average listing gain marked at 25% and an average return of 49% is traced by this week highlighting the market's potential for substantial profitability.. Four stocks—Jyoti CNC Automation, Exicom Tele-Systems, JNK India, and TBO Tek—delivered returns between 100% and 300% over their offer price.

 

In June, Bharti Hexacom, Le Travenues Technology, BLS E-Services, DEE Development Engineers, and Vibhor Steel Tubes, rallied between 57% and 92%. Another 18 gained between 8% and 44%, with only eight stocks trading below their offer price. Aadhar Housing Finance's ₹3,000-crore offer has returned 33% over its offer price, with the IPO subscribed 27 times.

 

Investor appetite for IPOs surged amid overall stock market growth. Nine IPOs, including Vibhor Steel Tubes, BLS E-Services, Mukka Proteins, Exicom Tele-Systems, Vraj Iron and Steel, Kronox Lab Sciences, Nova AgriTech, Awfis Space Solutions, and DEE Development Engineers, were subscribed 100 to 320 times. Another 22 IPOs were subscribed between 13 and 100 times.

 

Reasons for IPOs Growth

 

There are multiple reasons for such growth. The price may have been buoyed by favorable business prospects, reasonable pricing, and a robust secondary market supported by steady domestic and foreign investment flows. An analysis reflects that the most recent IPOs received strong responses. However, not all IPOs performed well on exchanges, some IPO shares fell below the issue price. Capital Small Finance Bank dropped the most, trading 26% below the offer price.

 

Gopal Snacks was 18% below its offer price. However, the performance is not uniformly positive. Other companies trading below their offer price include Akme Fintrade, RK Swamy, SRM Contractors, Entero Healthcare Solutions, GPT Healthcare, and Popular Vehicles and Services. 

 

At least three dozen companies, including Afcons Infrastructure, Ola Electric, Swiggy, NSDL, Asirwad Micro, Premier Energies, Shiva Pharmachem, One MobiKwik Systems, Waaree Energie, and CJ Darcl Logistics, are expected to hit the market this year.

 

Shapoorji Pallonji Group’s flagship infrastructure engineering and construction company, Afcons, is set to launch its IPO next month to raise ₹7,000 crore. Electric scooter maker Ola Electric also launched its IPO a few days before.

 

Conclusion:

The Indian primary market is experiencing a robust resurgence, reminiscent of the 2007 peak. The high subscription rates, with some IPOs, demonstrate strong investor interest and confidence in the market. However, the market is not without risks, as evidenced by some underperforming IPOs. Investors should remain cautious and selective, balancing optimism with due diligence to navigate the opportunities and risks in the evolving market landscape.

 

Disclaimer: This blog is posted solely for educational purposes. The securities mentioned are examples and not recommendations. It is based on various secondary sources from the internet and is subject to change. Please consult an expert before making any related decisions.

 

Disclaimer: This blog is posted solely for educational purposes. The securities mentioned are examples and not recommendations. It is based on various secondary sources from the internet and is subject to change. Please consult an expert before making any related decisions.