Shares of eight companies will make their debut on the stock exchanges on Tuesday – three on the mainboard and five on the SME platform – in one of the busiest listing days for the exchanges.
The mainboard listings are: real estate company Arkade Developers, logistics company Western Carriers (India) and financial services provider Northern Arc Capital. In the grey market, shares of these companies were trading at 8-57% premium to their issue prices on Monday.
The primary market has been buzzing in the last few months, especially after the completion of Lok Sabha polls. In less than three months since July, 22 companies have listed on the exchanges, with nine so far in September. These public issues have mobilised Rs 32,572 crore.
“It is going to continue as we have seen a lot of successful issues. We expect more IPOs, given that FPIs are also buying and there is adequate availability of funds,” said Vinit Bolinjkar, head of research at Ventura Securities.
Sunny Agrawal, head of fundamental equity research at SBICAPS Securities, shared a similar view. “It looks like the IPO market will remain robust, given that we have some big names like Hyundai India, Swiggy and NTPC Green in the pipeline. There is liquidity in the market. As long as that is there, the primary market should remain strong.”
On Tuesday, investors of Northern Arc Capital are likely to get the highest listing returns, as its stock were trading at 57% premium to its issue price. Western Carriers (India) was trading at a premium of nearly 9%, indicating modest first-day gains for its investors.
Grey market data for companies listing in the SME segment showed that two companies – Popular Foundations and Pelatro – did not have any premium, indicating a subdued listing.
On the other hand, shares of Envirotech Systems, Deccan Transcon and Osel Devices are likely to list at 55-80% premium.
Over the past few weeks, the investor sentiment for SME IPOs has taken a hit, with the SEBI issuing warning of “pump-and-dump” schemes by some companies/promoters, and the BSE holding the listing of Trafiksol ITS Technologies.
Experts said this has led to some caution among investors, leading to relatively-lower returns on some SME IPOs in the last couple of weeks.