24 IPOs raise over ₹9,500cr in June as market rebounds
What's the story
India's primary market has seen a surge in activity this June, with 24 companies raising a total of ₹9,525 crore. The small and medium enterprises (SME) segment led the way, accounting for 75% of the total funds raised. The mainboard segment contributed to the remaining 25%. This uptick comes after a period of subdued activity since February.
Market recovery
Revival in market activity
The revival in market activity can be attributed to the Reserve Bank of India (RBI)'s successive interest rate cuts and its unwavering faith in a consumption-driven economy. These factors have helped restore investor confidence, pushing equities higher. Many companies are now looking to revive their stake sale plans that were previously shelved due to unfavorable market conditions.
Subscription trends
Sacheerome IPO tops the chart
Investor response to the new issues has been mixed. Nearly half of the initial public offerings (IPOs) were subscribed to less than 10 times, while eight companies saw a strong demand with subscriptions between 90 and 291 times. Sacheerome topped the chart with its issue subscribed 291 times, followed by Eppeltone Engineers, Mayasheel Ventures, Influx Healthtech, and Monolithisch India, which were all subscribed to over 100 times.
Market debut
Several stocks have debuted with strong gains
Several of these stocks have debuted with strong gains amid robust investor demand. For instance, Eppeltone Engineers debuted at ₹243, a 90% premium over its IPO price of ₹128. Currently, it is trading 89% above its issue price. Monolithisch India was listed at ₹243, a 61.9% gain over its IPO price of ₹143, and is now trading 92.9% higher. Overall, 15 stocks, including SME and mainboard one,s are trading above their respective issue prices.
Future listings
Pipeline for new listings looks promising
The pipeline for new listings in July looks promising, with 26 issues likely to hit Dalal Street in the first two weeks. Bidding for most of these IPOs has already opened for investors. Among them are Kalpataru, Ellenbarrie Industrial Gases, Globe Civil Projects, AJC Jewel Manufacturers, Shri HareKrishna Sponge Iron, Icon Facilitators, and Abram Foo,d which are expected to debut on exchanges on July 1.