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IPOs in top gear: September 2020 witnesses 8 launches; busiest month in a decade

IPOs in top gear: September 2020 witnesses 8 launches; busiest month in a decade

IPOs in top gear: September 2020 witnesses 8 launches; busiest month in a decade
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By Pranati Deva  Sept 25, 2020 1:29:49 PM IST (Published)

September 2020 has ended a long dry spell of the IPO markets, which were severely hit due to the COVID-19 pandemic. The month has been one of the busiest months for the primary markets in a decade, witnessing the launch of 8 IPOs.

September 2020 has ended a long dry spell of the IPO markets, which were severely hit due to the COVID-19 pandemic. The month has been one of the busiest months for the primary markets in a decade, witnessing the launch of 8 IPOs. Before this, more than 8 IPOs in a single month was launched in September 2011.

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These 8 IPOs include Happiest Minds, Route Mobile, CAMS, Chemcon Specialty, Angel Broking, UTI AMC, Likhitha Infrastructure, and Mazagon Dock. These IPOs together are looking to raise over Rs 7,000 crore.
The new IPOs come after a four-month-long hiatus during which companies stayed away from the primary market. After the failed IPO of Antony Waste Handling Cell in March, the next IPOs came only in July – Rossari Biotech and Mindspace Business Parks REIT. They together raised Rs 5,000 crore from investors amid heavy demand.
The IPOs have also witnessed strong subscriptions and robust listings this month and as per experts investor are looking forward to more IPOs after the gap of 6 months.
Happiest Minds Technologies was the first IPO of the month and its stock more than doubled on their debut The stock soared 124 percent over its issue price on the first day itself. The Rs 702-crore IPO was subscribed 151 times.
The stock has left the big listings of DMart and IRCTC behind, as both delivered a little over 100 percent premium on their respective debuts. Back in 2017, Avenue Supermarts was listed with 102 percent premium while IRCTC last year witnessed a 101 percent premium, over their issue prices.
Meanwhile, the Rs 600 crore issue of Route Mobile was subscribed 73 times and it also listed at over 100 percent premium to issue price. The stock has already rallied over 150 percent since listing.
This week saw the launch od 3 IPOs - Computer Age Management Services (CAMS) and Chemcon Speciality Chemicals and Angel Broking.
The CAMS IPO was open for subscription between 21-23 September at a price band of Rs 1,229-1,230 per share. The Rs 2,244-crore IPO of Computer Age Management Services (CAMS) has seen a strong response from investors and was subscribed 46.98 times.
Meanwhile, Chemcon was also open for subscription during 21-23 September. It had a price band of Rs 338-340 per share and the specialty chemicals company was looking to raise Rs 318 crore at the upper end of the band. The issue was subscribed over 148 times in 3 days.
Riding on the IPO wave of retail investors, Angel Broking seeks to raise Rs 600 crore through its three-day IPO that opened from 22 September to 24 September. The price band was fixed at Rs 305-306 apiece and the issue saw a 3.95 times subscription. It was the first by a stockbroking firm in two-and-a-half years to launch an IPO.
Going ahead, UTI Asset Management Company and state-owned shipbuilder Mazagon Dock and Likhita Infartstructure will launch their offerings just before the month ends. As per experts, these may see heavy subscriptions due to huge listing gains in the earlier listings.
UTI Mutual Fund will launch its Rs 2,160-crore IPO on September 29. The price band for the IPO is Rs 552 to Rs 554 per share. At the top end, UTI will be valued a Rs 7,000 crore. The IPO opens on September 29 and closes on October 1.
The government is looking to raise Rs 440 crore by divesting a 15.2 percent stake in Mazagaon Dock through its initial public offering (IPO). It is set to launch its IPO on September 29 and close on October 1 with a price band set at Rs 135-145. The Centre currently holds a 100 percent stake in the shipbuilding firm. Mazagon Dock is a defence public sector undertaking shipyard under the Department of Defence Production, MoD.
Oil and gas pipeline infrastructure service provider Likhitha Infrastructure on Wednesday said it has a fixed price band of Rs 117-120 per share for its IPO, which will open on September 29. At the upper end of the price band, the company will raise Rs 61.2 crore through the IPO. It will close on October 1.
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