CarTrade, Aptus Value, Krsnaa Diagnostics, Rolex Rings hit new lows

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of the four recently listed companies, Tech, India, Krshna Diagnostics and Rolex Rings, hit fresh lows since their listings on the bourses on Tuesday. These stocks were down between 2 per cent and 4 per cent on the BSE in intra-day trade.

Tech, a company that operates online platforms for buying and selling of vehicles, hit a new low of Rs 1,365, down 4 per cent on the BSE. The company had debuted on August 20, 2021, and hs fallen 16 per cent below its issue price of Rs 1,618 per share.

Tech is a multi-channel auto platform provider company that operates various brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto, and AutoBiz.

“The major disappointing factor from CarTrade was that its IPO was 100 per cent offer-for-sale (OFS), therefore, no money will go into business for future expansion while high competition and low entry barriers are other risk factors,” said Santosh Meena, Head of Research at Swastika Investmart.

He, however, added that as the market is interested in new edge technology stocks whereas anchor book and HNIs subscription were decent for the CarTrade IPO, aggressive investors should hold this company for the long term.

of Krshna Diagnostics (KDL), meanwhile, were quoting lower for ninth straight trading day. The stock of the healthcare services provider hit a new low of Rs 768.45, down 4 per cent in intra-day trade today. It slipped 30 per cent from its 52-week high level of Rs 1,099.50, hit on its listing day (August 16, 2021). Currently, the stock is trading 19 per cent below its issue price of Rs 954 per share.

KDL offers a range of technology-enabled diagnostic services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology services to public and private hospitals, medical colleges, and community health centres pan-India.

A substantial portion of the revenue from operations depends on payments under contracts with public health agencies. If KDL is unable to negotiate and retain similar fee arrangements, if the contracts are cancelled, or if it is unable to realize payments due to it, its business may be materially and adversely affected.

Most of KDL’s diagnostic centres have been established and are operated under public private partnership contracts awarded by government agencies through a competitive bidding process. There can be no assurance that KDL will qualify for, or that it will successfully compete and win such tenders, are among key concerns, according to HDFC Securities.

IPO frenzy to continue in Oct-Nov, 30 firms look to mop up ₹ 45,000 cr: Report

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Hectic fundraising through initial public offerings (IPOs) is expected in October-November, with at least 30 companies are looking to collectively raise over ₹45,000 crore through initial share-sales, merchant banking sources said.

Of the total fundraising, a large chunk would be garnered by technology-driven companies.

The successful IPO of food delivery company Zomato, which was overwhelmingly subscribed by over 38 times, encouraged new-age tech companies to come out with their primary share-sales.

Historically, companies like Zomato have raised funds from private equity players and the IPO has opened up a new source of funding for new-age tech companies, Jyoti Roy, deputy vice-president (equity strategist) of Angel One, said.

The firms that are expected to raise funds through their IPOs during October-November include Policybazaar ( ₹6,017 crore), Emcure Pharmaceuticals ( ₹4,500 crore) Nykaa ( ₹4,000 crore), CMS Info Systems ( ₹2,000 crore), MobiKwik Systems ( ₹1,900 crore), the merchant banking sources said.

In addition, Northern Arc Capital ( ₹1,800 crore), Ixigo ( ₹1,600 crore), Sapphire Foods ( ₹1,500 crore), Fincare Small Finance Bank ( ₹1,330 crore), Sterlite Power ( ₹1,250 crore) RateGain Travel Technologies ( ₹1,200 crore) and Supriya Lifescience ( ₹1,200 crore) may float their IPOs during the period under review, they added.

Angel One’s Roy attributed the impressive IPO pipeline in the coming month to several factors, including a stronger-than-expected recovery in the economy after the second wave, continued FPIs and domestic flows in the markets and an increase in retail participation in the stock market in the past one year.

Going forward, the IPO boom is expected to extend in the coming year if the prevailing market situation remains constant or doesn’t change much, Kaushlendra Singh Sengar, founder and CEO at INVEST19, said.

Making a similar statement, Nikhil Kamath, co-founder of True Beacon and Zerodha, said if the bull run continues for the next 1-2 years, the IPO rush will continue. Moreover, the technology sector is expected to remain a major market driver.

So far, in 2021, as many as 40 companies have floated their IPOs to raise ₹64,217 crore. Further, Aditya Birla Sun Life AMC will launch its ₹2,778-crore initial share-sale on September 29.

Apart from these, PowerGrid InvIT, the infrastructure investment trust (InvIT) sponsored by Power Grid Corporation of India, mopped up ₹7,735 crore through its IPO, and Brookfield India Real Estate Trust raised ₹3,800 crore via its initial share-sale.

This was way higher than ₹26,611 crore raised by 15 companies through initial share-sales in the entire 2020.

Such impressive fundraising through IPOs was last seen in 2017 when firms mobilised ₹67,147 crore through 36 initial share-sales.

According to Kamath, IPOs rely heavily on market cycles and the IPO exuberance that has been witnessed in the last 18 months is a function of the current bull cycle. Companies look to take advantage of investor sentiments.

“The market is touching new highs and the strong response that we see in the primary market is nudging companies who were sitting on the fences to come and take advantage of the buoyant market,” Vikas Singhania, CEO of TradeSmart, said.

He, further, said that companies are raising money for growth capital or inorganic growth opportunities in the future.

Many of the IPOs are an offer for sale (OFS), where private equity players or the promoter wants to cash out part of their holding.

“Nowadays, the entire process of IPO garners a lot of attention for such companies that act as an indirect promotion,” Kamath said.

Initial share-sales are receiving tremendous applications from investors and IPOs have been subscribing multifold times. This has pushed companies to raise funds through IPO.

The initial share-sales of almost a dozen companies including Paras Defense and Space Technologies, MTAR Technologies, Easy Trip Planners, Devyani International, Rolex Rings, Tatva Chintan Pharma Chem and Nazara Technologies subscribed over 100 times.

Interestingly, the ongoing calendar year saw most of the IPOs opening with a premium over the issue price suggesting a strong investor appetite.

Laxmi Organic Industries, MTAR Technologies, Easy Trip Planners, GR Infraprojects, Clean Science and Technology, Macrotech Developers and Ami Organics which got listed this year, are trading above their issue price, giving smart returns in the range of 110 to 320 per cent, since listing, to investors.

INVEST19’s Sengar said that with the current favourable interest rate scenario along with high liquidity, financial institutions offer IPO funding products at lower rates. The lower cost of funding will continue to support the IPO boom.

Further, PSU disinvestment will be a blockbuster to support to ongoing IPO boom. Listing of LIC is expected to happen in 2021-2022, which will be one of the largest IPOs in the history of the Indian market. This will aid the current ongoing buoyancy in the IPO market for 2022, he added.

Earlier this month, Sebi Chairman Ajay Tyagi said that growth-oriented technology companies have raised ₹15,000 crore through initial share sales in the last 18 months and IPOs worth around ₹30,000 crore by such firms are in the pipeline.

“Growing number of unicorns in the startup ecosystem is a testimony of the new-age tech companies coming of age in our economy. These companies often follow a unique business model focusing more on rapid growth than immediate profitability,” he had said.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Why 2021 could be the year of IPOs? All you need to know about action so far in primary market

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There has been a huge rush of Initial Public Offerings (IPOs) in the primary market this year. The number of companies which have debuted on bourses or have submitted IPO papers with the Securities Exchange Board of India (SEBI) is so much so that the Reserve Bank of India had to say that ‘2021 could be India’s year of IPOs.’

“…growth impulse is igniting financial markets. 2021 could well turn out to be India’s year of the IPO. Debut offerings by Indian unicorns - unlisted start-ups - kicked off by a food delivery app’s stellar IPO that was oversubscribed 38 times, have set domestic stock markets on fire and global investors in a frenzy,” the RBI has said in an article on the ‘State of Economy’. The RBI was hinting at successful Zomato IPO, which listed at 53 per cent premium on NSE.

See Zee Business Live TV Streaming Below:

With the success of the IPOs in the Indian primary market so far, it appears that the IPO craze and rush is not going to fizzle down anytime soon. Paras Defence and Space Technologies Limited, the latest in the list, only confirms the confidence IPO enjoys from the investors. This issue went to script history with maximum subscription so far in the history of IPOs in India.

More than 40 companies have been already listed and many are in the pipeline to make their entry in the stock market this year. The buzz in the primary market has been such that it even caused panic among a section of investors that it may impact the secondary market negatively, however, Sensex on Friday took the list possible time of 246 day to add 10,000 points from 50,000 to 60,000.

From startups to chemical firms, this year has seen action in almost all sectors in the primary market. From Indian Railway Finance Corporation Limited (IRFC) IPO on January 8, 2021 to Paras Defence and Space Technologies Limited, there have been 43 companies have made their presence in the stock market till September 24, as per the NSE data.

Interestingly, a majority of these offerings have given massive return to investors. Many of these issues have even opened on 100 per cent or more premium and have witnessed many-fold subscription.

As per a report by news agency PTI in late August, as many as 23 companies have submitted documents with the SEBI, seeking permission for IPO. Interestingly, these requests were received within 20 days of August.

As per the same report, Rs 70,000 crore has been raised through more than 40 IPOs till August 20, while 23 companies that have submitted paper with the market regulator to raise Rs 40,000 crore capital from the primary market.

IPOs that have been listed so far and those that will be listed the next week on the NSE (the data is as per NSE in chronological order of the listing of the issue) are:

  1. Paras Defence and Space Technologies Limited

  2. Quadpro ITeS Limited SME

  3. Sansera Engineering Limited

  4. Indiabulls Housing Finance Limited

  5. BEW Engineering Limited

  6. Ami Organics Limited

  7. Vijaya Diagnostic Centre Limited

  8. Aptus Value Housing Finance India Limited

  9. Chemplast Sanmar Limited

  10. CarTrade Tech Limited

  11. Nuvoco Vistas Corporation Limited

  12. Krsnaa Diagnostics Limited

  13. Windlas Biotech Limited

  14. Exxaro Tiles Limited

  15. Devyani International Limited

  16. Rolex Rings Limited

  17. Glenmark Life Sciences Limited

  18. Tatva Chintan Pharma Chem Limited

  19. Zomato Limited

  20. Clean Science and Technology Limited

  21. G R Infraprojects Limited

  22. India Pesticides Limited

  23. Krishna Institute of Medical Sciences Limited

  24. Dodla Dairy Limited

  25. Shyam Metalics and Energy Limited

  26. Sona BLW Precision Forgings Limited

  27. Macrotech Developers Limited

28 Barbeque-Nation Hospitality Limited

  1. Nazara Technologies Limited

  2. Suryoday Small Finance Bank Limited

  3. Kalyan Jewellers India Limited

  4. Craftsman Automation Limited

  5. Laxmi Organic Industries Limited

  6. Anupam Rasayan India Limited

  7. Easy Trip Planners Limited

  8. MTAR Technologies Limited

  9. Heranba Industries Limited

  10. RailTel Corporation of India Limited

  11. Nureca Limited

  12. Stove Kraft Limited

  13. Home First Finance Company India Limited

  14. Indigo Paints Limited

  15. Indian Railway Finance Corporation Limited

Of the above list, Tatva Chintan Pharma Chem Ltd, G R Infraprojects Limited and Indigo Paints Limited IPOs were the most successful ones with all of these issues giving over 100 per cent premium to their investors, as per NSE listing day details. Similarly, Zomato Limited, Clean Science and Technology Ltd, MTAR Technologies

Limited and Nureca Limited were other IPO success stories, with listing gains of over 50 per cent.

Furthermore, the list does not stop here as many more exciting issues are set to be listed on exchanges later this year. Arohan Financial Services Limited, Fincare Small Finance Bank, ESAF Small Finance Bank, MobiKwik, Aditya Birla Sun Life AMC, Adani Wilmar, policy Bazaar, Aadhar Housing Finance, Ruchi Soya Industries FPO and more are expected to hit the market in 2021.