IPO watch: After the heavy beating in the Indian markets during spread of first wave of Covid-19, there is a rise in the number of companies getting listed at Indian bourses. According to stock market experts, the company promoters are trying to take benefit of rebound in the Indian markets post-Covid-19 and the recent rise in the number of IPOs can be attributed to this reason as well. Apart from this, they also maintained that there is certain section of investors who invest in IPOs only and once the IPO is listed they come out with whatever listing gain is available to them. They went on to add that current market scenario is looking conducive for quality companies with strong financials to get listed at the Indian bourses and various company promoters who were planning to get their companies listed are doing the same.
Highlighting the reason for rise in IPO's listing these days Avinash Gorakshkar, Head of Research at Profitmart Securities said, "After Covid-19 first wave, market bounced back strongly and hence equity return suddenly become high. So, those company promoters who were planning to list their company started launching IPOs of their companies. They were trying to take advantage of the market momentum in post-Covid rebound. Apart from this, there is a certain section of investors, who have fished out money from the equities as third wave of Covid-19 fear is still around. Such investors are investing in IPOs and they come out of their holdings with whatever listing gains they get from the public issue."
Gorakshkar said that those companies that had strong financials and better business model and outlook, received rave response from such investors and as a result quality companies with strong financials have been able to give listing premium around 100 per cent or more than 100 per cent.
Here we list out the following 5 IPOs of recent time, that have either doubled or almost doubled bidders’ money on listing date itself.
1] Tatva Chintan IPO: The chemical specialty company shares got listed at both NSE and BSE on 29th July 2021 delivering listing premium to the tune of 95 per cent to its successful bidders. Tatva Chintan shares got listed at BSE at ₹2,111.80 while at NSE it got listed at ₹2,111.85. TTatva Chinttan IPO price band was fixed at ₹1073 to ₹1083 per equity share. Immediately after the listing, it made intraday high of ₹2,534.20 at NSE and ₹2,486.30 at BSE — almost close to its 20 per cent upper circuit levels. So, those who got Tatva Chinttan shares allotted during finalisation process of the share allottment, had a great chance of booking more than 100 profit on their investment.
2] GR Infra IPO: The engineering company shares got listed at NSE and BSE on 19th July 2021 delivering more than 100 per cent listing premium to its successful bidders. GR Infra shares listed at ₹1700 at BSE and at ₹1,715.85 at NSE. The public issue price was fixed at ₹828 to ₹837. The public issue was subscribed 102.58 times of its offer.
3] Clean Science IPO: This chemical manufacturer company's shares got listed at Indian bourses on 19th July 2021. Against itts issue price of ₹880 to ₹900, this share got listed at ₹1,784.40 at BSE and at ₹1,755.00 at NSE — delivering around 98 per cent listing gain to the successful bidders on its listing date.
4] Burger King IPO: India's fastest growing quick service restaurant chains' shares were listed at NSE and BSE on 14th December 2020. Against the issue price of ₹59 to ₹60, Burger King shares got listed at ₹115.35 at BSE and at ₹112.50 at NSE — giving around 92 per cent return to its successful bidders on the listing date.
5] Happiest Minds IPO: This Bengaluru-based IT service company shares got listed on 17th September 2020. Against its issue price of ₹165 to ₹166, the public issue was listed at ₹351 at BSE and at ₹350 at NSE — delivering more than 111 per cent return to the successful bidder of the issue on listing date itself.
