Indian stock markets have risen multifold in 2017 with the key equity indices rising about 28%. There were many shares from small-cap to large-cap categories which have beaten these stellar returns even. The domestic stock market rally wasn’t limited to secondary markets but the primary market where companies issue shares for the first time through IPO (initial public offerings) also received a heavy response. There were about seven IPOs which got subscribed over 100 times and a few ones which got a bumper debut on stock exchanges. This year there were some of the biggest IPOs in the history of Indian capital markets, namely from ICICI Lombard’s Rs 5,700 crore issue to GIC’s Rs 11,370 crore public offer.
In 2017, there were some high profile issues also such as HDFC group came with a public offer of HDFC Standard Life Insurance after 22 years and BSE which became India’s first stock exchange to be listed on the exchange. Amid the ongoing euphoria in domestic equities, we bring you shares of 3 companies to buy which came up with high-profile IPOs in 2017 and gain up to 21% in new year 2018.
SBI Life — Axis Securities
Shares of SBI Life Insurance Company have been flat from the issue price of Rs 700 since their debut on bourses. The stock of SBI Life made a lifetime low of Rs 629. The research and brokerage firm Axis Securities has given a ‘buy’ rating with a target price of Rs 850 implying an upside of 21% from its current market price of around Rs 700.“SBI Life with its unparalleled distribution network, leadership in New Business Premium (NBP) among private insurers, strong management team and top quartile service ratios is a proxy play to the huge opportunity in India’s life insurance space,” Axis Securities said in a report.
Godrej Agrovet — Axis Securities
Shares of Godrej Agrovet have risen more than 20% from the issue price of Rs 460. Axis Securities has given a buy rating with a further upside of 14% to a target price of Rs 648 from the current market price of Rs 568. “Leader in animal feed with customer stickiness. 5-7x growth opportunity as industry shifts from non-compound to compound feed. Benefits from strong brand, R&D, sales on cash & carry and pan-India distribution,” Axis Securities said.
Mahindra Logistics — Axis Securities
Shares of Mahindra Logistics have also been flat from the issue price of Rs 429. Axis Securities has given a target price of Rs 525 which implies an upside of 19% from the current market price of Rs 440. Shares of Mahindra Logistics made an all-time low of Rs 405.1 on NSE.