August also saw several new-age companies, including marquee names like Ola Electric, Unicommerce, and Brainbees Solutions, tapping the public markets.
The highly anticipated IPO of Ola Electric successfully raised about Rs 6,145 crore, but investor demand was mixed, resulting in a 4x subscription. This was reflected in the company’s listing, which fell short of expectations.
However, following its debut, the company’s shares doubled, rewarding investors in the secondary market. Although the stock subsequently experienced profit booking, it is currently trading 56% above the offer price.
Brainbees Solutions, which operates the FirstCry platform, also launched its Rs 4,193 crore IPO in August and received a healthy response from investors. Since its debut, the shares have performed well, showing a 38% gain compared to the offer price.Among internet companies, Unicommerce stole the spotlight with its IPO being subscribed over 100 times. This strong sentiment continued into its market debut, where shares were listed at a remarkable 118% premium, making it one of the standout performers on the Street.Overall, a total of 8 companies made their debut on the Street in August, with only one negative debut from Ceigall India.
SME Market
The SME market also saw significant activity, with 20 companies launching their public offers in August, despite concerns about regulation and caution from advisors.
The SME market kept pace with the mainboard IPO segment, with 20 companies launching public offerings in August despite regulatory concerns and caution from market advisors.
Around 22 SMEs raised a cumulative Rs 758 crore in August, making it the third-best month this year for capital raising. This wave of activity highlights the resilience and optimism within the SME sector, even amid a more cautious market environment.
As anticipated, subscription numbers soared, with 8 IPOs receiving responses of 300 times or more. Aesthetik Engineers topped the list with a subscription rate of over 700 times, closely followed by Braceport Logistics with a demand of 657 times.
The pricing cap on SME platforms limited listings to a maximum of 90%. However, the post-listing surge led to 8 companies delivering multibagger returns on Day 1.
What next?
The IPO market has witnessed a notable upswing recently, driven by strong market sentiments and robust economic growth. In August alone, 17 companies filed DRHPs with the regulator, the highest number of monthly filings in over a year.
Analysts anticipate that the IPO market will remain vibrant for the remainder of the year due to these favorable market conditions.
“Recently listed IPOs have performed exceptionally well, boosting confidence among both companies and investors. This renewed optimism is prompting investors to look at opportunities in the primary market and driving promoters to raise funds through IPOs. Foreign investors also favour India’s primary market for its potential for higher returns,” said Pantomath Capital Advisors.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)