By Ruchir SankhlaThe Nifty 50 closed on Monday with a sharp fall, sliding over 1.2%. The sell-off follows a weekend escalation in the Middle East after the US and Israel launched coordinated strikes across Iran. The attack and the reported killing of Iran’s Supreme Leader Ayatollah Ali Khamenei has heightened fears of a wider regional conflict, as Iran retaliated with a wave of missile and drone attacks targeting Israel, US military bases, and US-allied Gulf states.
Crude oil prices jumped sharply as markets priced in possible supply disruptions. Concerns over tanker access to the Strait of Hormuz have added to supply fears. For India, a major oil importer, sustained high crude prices could raise inflation and widen the current account deficit.
Amid the global turmoil, domestic data remains steady. The HSBC India Manufacturing Purchasing Managers’ Index rose to 56.9 in February, a four-month high, driven by strong domestic demand. The reading signals continued growth in factory activity and suggests that the local economy remains firm. The market will remain shut on March 3 for Holi.
Apart from US-Iran tensions, the market will also focus on speeches from Federal Reserve officials, final PMI readings from major economies, US jobless claims, retail sales, and the US employment report.
Vinod Nair, Head of Research at Geojit Investments, said, “Domestically, a risk-off tone prevails as the earnings season tapers and global macro factors take precedence. With FII flows remaining cautious and volatility likely to persist, markets are expected to stay in the consolidation range.”
It's another packed week for the IPO market. Five companies are launching new issues, while four others are scheduled to list on the exchanges, following nine listings last week.
Most IPOs open below their issue price
Gaudium IVF And Women Health, India’s first fertility chain to go public, made a cautious debut on February 27. The Rs 165 crore IPO was subscribed 7.3X and listed at a modest 5.1% premium to the issue price of Rs 79. The stock is trading at 4.7% above its issue price.
Renewable energy provider Clean Max Enviro Energy made a weak debut on March 2. The Rs 3,100 crore IPO was subscribed just 0.9X. The shares listed at a discount of 8.8% against the issue price of Rs 1,053. Following the debut, the shares witnessed strong selling interest and are currently trading 17.6% below the issue price.
Shree Ram Twistex, a cotton yarn manufacturer, had a disappointing stock market debut on March 2. The Rs 110.2 crore IPO was subscribed a robust 43.7X. However, the stock listed at a steep discount of 34.6%, compared to the issue price of Rs 104. The stock is trading down by 31.4% from its issue price.
Gaudium maintains positive returns; Clean Max continues to slide
In the SME segment, six firms debuted.
Manilam Industries, a manufacturer of decorative laminates, faced a rough start on February 27. Despite the Rs 40 crore IPO being subscribed 5.9X, the stock listed at a 20% discount to the issue price of Rs 69. The company plans to use the proceeds to fund capacity expansion and solar panel installations.
Yashhtej Industries, a Maharashtra-based soybean processor and solar power player, had a difficult debut on February 25. The Rs 88.9 crore IPO was subscribed 1.4X, but failed to find momentum, listing at a 20% discount to its issue price of Rs 110. The stock remained under pressure as investors are cautious about the company’s recent diversification into the solar segment.
Fractal Industries, a garment manufacturer, delivered a modest performance on February 24. The Rs 49 crore IPO saw a subscription of 5.4X and listed at a 6% premium to the issue price of Rs 216. Though the stock quickly hit the lower circuit shortly after listing due to profit-booking, it is currently trading 1.9% higher.
Kiaasa Retail, a women’s ethnic wear brand, made a cautious market debut on March 2. Despite a healthy subscription of 2X, the stock listed at a 3.1% discount to its issue price of Rs 127. The company will use funds to expand its retail footprint and open new exclusive brand outlets.
Accord Transformer and Switchgear, a manufacturer of electrical power equipment, saw a positive start on March 2, listing at an 8.7% premium over its issue price of Rs 46. The Rs 25.6 crore IPO was subscribed 332.1X. The company plans to use the capital for new machinery and working capital to support its order book in the renewable energy sector.
Mobilise App Lab, an IT solutions provider, delivered a weak performance upon its debut on March 2. The Rs 20.1 crore IPO, which was oversubscribed 93.1X, listed at a 19.9% discount to its issue price of Rs 80. The company plans to deploy the funds toward product development, talent hiring, and upgrading its cloud-based infrastructure.
Four IPOs gear up for market debut this week
PNGS Reva Diamond Jewellery, a diamond and gold jewellery company, closed its Rs 380 crore IPO on February 26. The issue saw a moderate response, being subscribed 1.2X overall at a price band of Rs 367-386. The company intends to use funds to establish 15 new showrooms and for marketing activities. The shares will list on March 4.
Omnitech Engineering, a high-precision component manufacturer, closed its Rs 583 crore IPO on February 27. The issue received a moderate response with an overall subscription of 1.1X. Demand was primarily institution-led, while retail participation remained muted. The company is set to debut on March 5.
PNGS Reva attracts steady retail bidding; Omnitech lags
Two SME IPOs are also listing this week.
Yaap Digital, a digital marketing firm, closed its Rs 80.1 crore IPO on February 27. The issue saw a steady interest with a subscription of 4X, driven by the high-net-worth (HNI) individual segment, which received a subscription of 7.2X. The shares will list on March 5.
Striders Impex, a kids' merchandise and toy distributor, closed its Rs 36.3 crore IPO on March 2. The issue saw a steady response at 1.2X, with the institutional category showing the most interest. The shares will list on March 6. The company plans to use the money for working capital requirements, investment in a new UAE-based subsidiary, and repayment of existing loans.
Mainline and SME issuers crowd this week’s calendar
SEDEMAC Mechatronics, an electronic controller maker, will open its Rs 1,087.5 crore IPO from March 4 to March 6. The price band is set at Rs 1,287–1,352. The issue is entirely an offer for sale of 80 lakh shares by existing investors. The stock is scheduled to list on March 11.
Rajputana Stainless, a stainless steel products manufacturer, will open its Rs 255 crore IPO from March 9 to March 11. The price band is set at Rs 116–122. The issue is a mix of a fresh issue of 1.5 crore shares and an offer for sale of 62.5 lakh shares. The stock will list on March 16.
SEDEMAC outpaces Rajputana Stainless on earnings growth
This week, three SME IPOs open for subscription.
Acetech Ecommerce, a digital retail and distribution platform, will launch its Rs 49 crore IPO between February 27 and March 4. The offering consists entirely of a fresh issue of 44 lakh shares. With a price band of Rs 106-112, the company will list on March 9.
Elfin Agro, a Rajasthan-based processor of wheat products and mustard oil, will launch its Rs 25 crore IPO between March 5 and March 9. The offering consists entirely of a fresh issue of 53.3 lakh shares. With a fixed price of Rs 47 per share, the company is expected to list on March 12.
Srinibas Pradhan Constructions, an Odisha-based infrastructure and road development firm, will open its Rs 20.3 crore IPO from March 6 to March 10. The price band is fixed at Rs 91–98. The offering includes a fresh issue of 17.1 lakh shares and an offer for sale of 3.6 lakh shares. The company will list on March 13.