Three companies will launch initial public offerings (IPOs) worth ₹3,160 crore next week, hoping to benefit from an equity market awash with liquidity and a sharp increase in new retail investors.
Indian stocks have rebounded more than 50% from their lows in March when the government imposed one of the world’s strictest lockdowns to contain covid-19. This rally has ended a long spell of dry primary markets this year with three major IPOs since the outbreak witnessing strong subscriptions.
“There is a flush of IPOs from mid-sized firms to take advantage of the buoyant market conditions and a significant rise in retail participation. More importantly, there is a willingness to pay premium valuation to firms with differentiated business models and a reputed management team,” said Gaurav Dua, senior vice president and head of capital market strategy and investments, Sharekhan by BNP Paribas.
Two IPOs will open for subscription on Monday: Computer Age Management Services (CAMS) and Chemcon Speciality Chemicals Ltd, followed by Angel Broking on Tuesday.
The CAMS IPO will be open for subscription on 21-23 September at a price band of ₹1,229-1,230 per share. Existing shareholder NSE Investments Ltd is looking to sell its entire stake through the offering, which will fetch it ₹2,242 crore at the upper end of the band.
With a price band of ₹338-340 per share, the share sale of Chemcon will be open for subscription during 21-23 September. The specialty chemicals company aims to raise ₹318 crore at the upper end of the band.
Riding on the strong wave of retail investors, Angel Broking will seek to raise as much as ₹600 crore through its three-day IPO that will close on 24 September. The price band has been fixed at ₹305-306 apiece.
Huge listing gains seen in all the stock market listings in the last few months have lured investors, resulting in IPOs seeing heavy subscriptions.
Shares of Happiest Minds Technologies Ltd more than doubled on their debut on Thursday. The stock soared 138% over its issue price on the first day itself. The ₹702-crore IPO was subscribed 151 times last week. The ₹600 crore issue of Route Mobile, which was subscribed 73 times, will list on Monday.