IPO roundup: Primary market route remains busy but this time with some caution

There has been no dearth of companies lining up to make their way to the bourses keeping the health of the primary market strong over the past few months but the week gone by has been particularly crucial for the IPO market. It is crucial not only because it saw four companies getting listed on the exchanges but also because it was a week that saw some cool off in the euphoria surrounding the IPOs and valuations attempted to catch up with fundamentals.

Companies like Windlas Biotech, Devyani International, Krsnaa Diagnostics and Exxaro Tiles raised Rs 3,614 crore and got listed on exchanges. Also, 17 companies including three SMEs have filed Draft Red Herring Prospectus (DRHP) with SEBI in the week between August 15 to August 27.

 

*Note: Some Figures Are Indicative Or Source-Based

Dehradun-based Windlas Biotech is one of the top companies in the domestic pharmaceutical formulations contract development and manufacturing organization (CDMO) in India.

The company had set an issue price of Rs 448-460/share. The issue was subscribed over 22X.

Windlas Biotech made a weak debut on exchanges listing at Rs 439/share, down almost 5 percent as compared to its issue price of Rs 460/share. The stock closed its first week on the exchanges with being down over 20 percent from its issue price.

Devyani International operated popular chains in India like KFC, Pizza Hut and Costa Coffee. The company had set an issue price of Rs 86-90/share. The issue was oversubscribed over 116X, generating bids for 1,313.79 crore  equity shares against an offer size of 11.25 crore equity shares.

Devyani International made a strong debut on exchanges listing Rs 141/share, a premium of 56 percent over its issue price of Rs 90/share. The company closed its first week on the exchanges by trimming its overall gain by 16 percent from the high it made on the listing day itself.

Krsnaa Diagnostics is India’s largest diagnostic services provider, both in Radiology and Pathology. The company is present in 14 states and 1800+ locations across the country.

The company had set an issue price of Rs 933-954/share. The issue was subscribed 64X with retail portion getting subscription of 42X.

The company made a subdued listing on the exchanges, listing at a premium of 7 percent to its issue price. The stock closed its debut week on exchanges with being down 16 percent from its high and 3 percent from issue price.

Exxaro Tiles is engaged in the manufacturing, marketing activities of vitrified tiles. It supplies its products to large infrastructure projects i.e. residential, educational, commercial, hotels, hospitals, government, builders or developers, religious institutions. It also exports tiles to different countries across the globe i.e. Poland, Bosnia, the USA, and others.

The company had set its issue price at Rs 118-120/share. The issue was subscribed 23X, receiving bids worth 25.97 crore bids against the issue size of 1.15 crore  shares. The quota reserved for retail investors saw a 17.64 times subscription.

Exxaro Tiles also made a subdued listing on the exchanges listing at a premium of 5 percent at Rs 126/share. The company made a high of Rs 132/share and closed the week nearly 7 percent down from the high point. For the week, shares of Exxaro Tiles are up 2.5 percent from its issue price.

The week between August 15 to August 22 saw one staring listing in the form of Devyani International whereas Windlas Biotech disappointed its investors at least on a listing day. In the same period (the previous week) Market snapped its 2-week gaining streak with Sensex dropping 0.2 percent and Nifty 0.5 percent. Nifty Bank also fell over 3 percent & Midcap Index nearly 2 percent.