Even as the market week ended Friday was a blockbuster for the IPO market, an expert said the Indian market is retaining its positive trajectory and the momentum is likely to continue going forward. During the week, a total subscription amount of Rs 3.5 lakh crore and more than 1.5 crore applications getting processed in T+3 is a new global record.
Mahavir Lunawat, managing director of Pantomath Capital Advisors, said, “The Indian market is retaining its positive trajectory. The primary market stole the spotlight in the week ending December 1, 2023, with a line-up of IPOs capturing investor interest. Tata Technologies IPO, as expected by the Street, witnessed robust demand from all sections of investors.”
A total of 5 IPOs were listed this week — Tata Technologies IPO, Gandhar Oil Refinery IPO, Fedbank Financial Services IPO, Flair Writing Industries IPO, and Rockingdeals Circular Economy SME IPO.
All IPOs, except Fedbank Financial Services IPO, gave overwhelming returns on the listing day. Tata Technologies posted as high as 140 per cent listing gains as compared to its IPO listing price, Gandhar Oil Refinery posts 75 per cent profit, and Rockingdeals Circular SME IPO records 115 per cent gain. Flair Writinf Industries recorded 65 per cent listing gains.
Though all other IPOs got fully subscribed on the first day, Fedbank Financial Services, which initially garnered a muted response, witnessed full subscription on the third day.
“Total subscription amount of Rs 3.5 lakh crore and more than 1.5 crore applications getting processed in T+3 is a new global record. This must be attributed to the efficient process laid out by the market regulator SEBI and able handling by the ecosystem participants such as investment bankers and registrar,” Lunawat said.
He said the surge in IPO activity is attributed to the eagerness of companies to tap into capital markets before or after the Lok Sabha elections, coupled with robust economic activity and positive sentiments from both domestic and foreign investors towards India.
“This momentum is likely to continue well into 2024,” Lunawat said.
Apart from the primary market, the week was also great for the secondary market. On Friday, a stronger-than-expected GDP growth in Q2, coupled with expansion in manufacturing PMI for November gave a shot in the arm to market bulls. The S&P BSE Sensex soared 493 points, or 0.74 per cent, Friday to settle at 67,481 levels. The Nifty50, on the other hand, closed at a record closing peak of 20,268, up 135 points or 0.67 per cent. It scaled a new peak of 20,291.55 in the intraday trade.
