How 90% IPOs in August beat volatile India market to return up to 72% after listing
Out of 17 IPOs that listed in August, 15 gave positive listing-day returns, translating into a hit rate of about 88%. The same number of issues are also trading above their issue price as of the latest available data, which means nearly 90% of August IPOs are still in the green.
The performance shows that the primary market remained strong even as the broader secondary market stayed selective. Investor appetite was healthy across sectors such as healthcare, logistics, engineering, dairy, energy, jewellery, industrials and consumer-facing businesses.
Tempsens leads gains
Tempsens Instruments was the standout listing of the month. The company doubled investor money on debut, making it the biggest winner among August IPOs. Among others, Dhoot Transmission delivered the strongest current return. The stock was issued at Rs 871 and is now trading at Rs 1,499, giving investors a gain of 72%. It had already listed strongly at Rs 1,187, a listing-day gain of 36%.
Technocraft Ventures was another big winner. The stock listed at around Rs 311 against an issue price of Rs 212, giving a listing gain of 47%. It is now at Rs 358, up 69% from the issue price. Behari Lal Engineering also rewarded investors sharply. The stock listed at Rs 502 against an issue price of Rs 285, a gain of 76% on listing day. It is currently at Rs 469, still up 64% from the IPO price.
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Milky Mist Dairy Food gave investors both listing gains and follow-up gains. The stock listed at Rs 181 against an issue price of Rs 140, a gain of around 30%. It has since moved to Rs 217.31, taking total gains to 56%.MV Electrosystems was another strong performer. It listed at Rs 624 against an issue price of Rs 425, a gain of 47%, and is currently at Rs 646.8, up 52%.
Most IPOs hold gains
Several IPOs that listed with decent gains continued to trade above issue price. Molbio Diagnostics is currently trading nearly 42% higher over the issue price, while Shiprocket is still up 37%. Manipal Health Enterprises also held firm after listing. The stock was issued at Rs 590, listed at Rs 667 and is now at Rs 798, giving investors a gain of 35%.
Only two IPOs turn negative
Only two August IPOs are currently below their issue prices. Shankesh Jewellers listed with a small gain of 2%, but has slipped below issue price and is trading about 4% lower. Horizon Industrial Parks had a weak debut, listing 3% below issue price, and is currently down 5%.
September pipeline remains strong
The strong August report card comes just as the IPO pipeline is set to get heavier in September. Investment banking sources expect more than 20 companies to tap the market during the month, with the total fundraising pipeline potentially going up to Rs 70,000 crore if one of the two mega issues, Jio Platforms or NSE, is launched.
Jio Platforms has already received Sebi approval for its much-awaited IPO. The Reliance Industries-backed digital services company is expected to raise around Rs 37,700 crore, which could make it one of India’s largest-ever public issues. NSE is also likely to receive Sebi approval soon and may launch its IPO as early as September, according to people aware of the matter. The exchange’s tentative issue size is pegged at around Rs 30,000 crore.
The pick-up follows a busy July and August for the primary market. Companies raised about Rs 28,000 crore in July and more than Rs 23,000 crore in August, showing that issuers have returned after holding back during the volatile first half of the year.
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