Initial public offers (IPOs) have had a dream run so far this year, contributing to the bullish sentiment on the street. However, some of the IPOs haven't matched up to the expectations, eliciting a lukewarm response from investors lately. That begs the question: Is IPO euphoria over or is there still some more steam left?
Barring a few companies such as Devyani International and Tatva Chintan, all IPOs in the current quarter so far have not generated the kind of response that debutants managed earlier this year.
While the public offers of Devyani International and Rolex Rings in August saw subscription of 117 times and 130 times respectively, those of Tatva Chintan and GR Infraprojects in the previous month secured bids equivalent to 180 and 103 times their issue sizes.
Also, out of the 14 IPOs successfully completed so far this quarter, more than half have secured subscriptions of up to 44 times — the worst being the issues of Nuvoco and Chemplast last month, which were only subscribed around two times each.
|IPO||Subscription||Listing||CMP vs issue price|
|Aptus Value Housing Finance India Limited||17.2x||5.67% discount||+3.97%|
|Chemplast Sanmar Limited||2.17x||1.66% premium||+13.18%|
|Nuvoco Vistas Corporation Limited||1.71x||14.91% discount||-1.32%|
|CarTrade Tech Limited||20.29x||1.12% discount||-9.93%|
|Devyani International Limited||116.71x||56.56% premium||+38.33%|
|Krsnaa Diagnostics Limited||64.4x||5.35% premium||-2.51%|
|Windlas Biotech Limited||22.47x||5% discount||-14.24%|
|Exxaro Tiles Limited||22.68x||5% premium||+10.71%|
|Rolex Rings Limited||130.44x||38.89% premium||+20.50%|
|Glenmark Life Sciences Limited||44.17x||4.17% premium||-6.85%|
|Tatva Chintan Pharma Chem Limited||180.36x||95% premium||+88.37%|
|Zomato Limited||38.25x||52.63% premium||+79.28%|
|G R Infraprojects Limited||102.58x||104.99% premium||+88.18%|
|Clean Science and Technology Limited||93.41x||95% premium||+73.78%|
That's not all. There are two IPOs that are currently open and actively receiving bids till Friday, September 3.
At the end of the second day of bidding, while the IPO of Ami Organics has been fully subscribed, with bids of 3.90 times the issue size, that of Vijaya Diagnostic Centre has not received even half the bids compared to the issue size. At the end of the second day, its public offer is at 47 percent subscription.
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Earlier this year, a number of IPOs attracted more than 100 times subscription in the primary market.
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Some of the companies that received blockbuster responses for their IPOs are: MTAR Technologies (201 times), Nazara Technologies (176 times), EasyTrip Planners (159 times), Shyam Metalics and Energy (121 times), IndiGo Paints (117 times) and Laxmi Organic Industries (107 times).
(Edited by : Ajay Vaishnav)
First Published: IST