By Ruchir SankhlaThe Nifty 50 closed higher on June 22, recovering from Friday’s IT-led decline, as progress in US-Iran peace talks and lower crude oil prices lifted investor sentiment.
The main trigger was the outcome of the first round of talks between the US and Iran in Switzerland. Mediators Qatar and Pakistan said both sides made encouraging progress and agreed on a 60-day roadmap to reach a final deal. This helped ease concerns over the Strait of Hormuz and pushed Brent crude below $80 per barrel.
Back home, sentiment was also supported by strong foreign inflows. FIIs bought equities worth Rs 4,859 crore on June 19, their biggest daily purchase since February. Reliance Industries also supported the market after optimism with Jio Platforms’ proposed IPO.
Looking ahead, markets will be closed on Friday for Muharram. Investors will be focusing on the outcome of talks between the US and Iran, crude oil prices and trading activity of foreign investors.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said, "The relentless selling of FPIs in India is over. The principal reason for this change in FPI activity is the stability and slow appreciation in the rupee."
The primary market is gaining momentum as the IPO pipeline expands to 14 issues. This week, six companies are scheduled to debut on the stock exchanges, after three successful listings last week.
Three SME IPOs hit the market last week
Three SME IPOs listed last week, with zero contribution from the Mainline.
Horizon Reclaim, a Haridwar-based reclaimed rubber manufacturing company, made a strong debut on June 19. The Rs 54.3 crore IPO was subscribed 282.9x and listed at a 46.6% premium to its issue price of Rs 103. The company plans to use the proceeds to repay outstanding borrowings and install plant machinery. The stock is currently trading 40% above its issue price.
Susan surges post listing, while Horizon and Utkal Speciality fall
Susan Electricals, a Ghaziabad-based wires and cables manufacturer, made a robust debut on June 18. The Rs 70.4 crore IPO was subscribed 139.3x and listed at a 46.5% premium to its issue price of Rs 127. The company plans to use the proceeds to expand its existing manufacturing facility. The stock is currently trading 69.5% above its issue price.
Utkal Speciality Industries, a paper packaging materials company, made a flat debut on June 17. The Rs 34.5 crore IPO was subscribed 1.6x and listed at its issue price of Rs 66. The company plans to use the proceeds to fund capital expenditure for expansion and the repayment of certain borrowings. The stock is currently trading 18.4% below its issue price.
Six SME IPOs head for debut, no mainboard listings
Clay Craft India, a Jaipur-based ceramic tableware manufacturer, opened its Rs 110.1 crore IPO for subscription on June 17 and closed on June 19. The issue saw strong investor interest, closing with an overall subscription of 95.9x. The company plans to use the net proceeds to set up an additional manufacturing facility at Manda, Rajasthan. The shares will list on June 24.
Diksha Polymers, a Gwalior-based plastic packaging materials manufacturer, opened its Rs 17.9 crore IPO for subscription on June 17 and closed on June 19. The issue saw modest investor interest, closing with an overall subscription of 2.8x. The shares will list on June 24.
Liotech Industries, a Rajkot-based hardware structures and accessories manufacturer, opened its Rs 36 crore IPO for subscription on June 17 and closed on June 19. The issue saw mild investor interest, closing with an overall subscription of 1.9x. The company plans to use the proceeds to purchase a new machinery. The shares will list on June 24.
Investors crowd into Avience Biomedicals and Clay Craft India IPOs
Leapfrog Engineering Services, a Bengaluru-based integrated engineering and solutions provider, opened its Rs 88.5 crore IPO for subscription on June 17 and closed on June 19. The issue closed with healthy investor demand, with an overall subscription of 2.6x. The company plans to use the net proceeds to fund capital expenditure for setting up a new assembly unit. The shares will list on June 24.
Riyaasat Lifestyle, an Ahmedabad-based ethnic wear manufacturer, opened its Rs 30.8 crore IPO for subscription on June 18 and closed on June 22 (Monday). As of the final day, the issue saw a weak response with an overall subscription of 0.2x. The company plans to use the proceeds to set up four new showrooms. The shares will list on June 25.
Avience Biomedicals, a Noida-based diagnostic kits and medical devices manufacturer, opened its Rs 30.2 crore IPO for subscription on June 18 and closed on June 22. As of the final day, the issue saw robust demand with an overall subscription of over 229.6x. The company plans to use the proceeds to set up a new manufacturing unit in Uttar Pradesh. The shares will list on June 25.
From fintech to snacks: Fourteen IPOs enter the pipeline
Turtlemint Fintech Solutions, a Mumbai-based technology-enabled insurance distribution platform, opened its Rs 882.7 crore IPO for subscription on June 19 and will close on June 23. The company plans to use the proceeds to expand its cloud & server infrastructure and product development. The stock will list on June 29.
Advit Jewels, a Jaipur-based jewellery manufacturer, will open its Rs 165.2 crore IPO for subscription from June 23 to June 25. The price band is set at Rs 130–138 per share. It is an entirely fresh issue of up to 1.2 crore shares and is scheduled to list on July 1.
Waterways Leisure Tourism, the operator of ocean cruise line Cordelia Cruises, will open its Rs 585 crore IPO from June 23 to June 25. The company plans to use the net proceeds to expand into new markets and expand its fleet. The stock will list on July 1.
CSM Technologies, an IT and GovTech solutions company, will open its Rs 145.8 crore IPO for subscription from June 24 to June 29. It is an entirely fresh issue of 1.3 crore shares with the price band set at Rs 107–113 per share. The stock will list on July 2.
Aastha Spintex, a Gujarat-based manufacturer of cotton yarns and bales, will launch its Rs 170 crore IPO for subscription from June 29 to July 1. The company plans to use the proceeds as part payment for the acquisition of Falcon Yarns. The stock will list on July 6.
Turtlemint tops revenue growth, while Advit Jewels leads profit growth
Nine SME IPOs are also lined up.
- Anubhav Plast opened its Rs 24 crore IPO for subscription on June 19 and will close on June 23. The company plans to utilize the capital to set up a new manufacturing facility. The stock will list on June 29.
- Jivial Industries will open its Rs 32 crore IPO for subscription from June 23 to June 25. The company aims to use the funds to backward integrate into aluminum extrusion. The stock will list on July 1.
- Shreedhar Spinners will open its Rs 30.7 crore IPO for subscription from June 23 to June 25. The company plans to use the proceeds to fund the expansion of its manufacturing facilities. The stock will list on July 1.
- Atharva Polyplast will open its IPO for subscription from June 30 to July 2. The offering consists of a fresh issue of 45 lakh shares. The stock will list on July 7.
- Dhanwel Hybrid Seeds will launch its Rs 26.7 crore IPO from June 24 to June 29. The company plans to use the funds to improve its seed development, processing, and distribution networks. The stock will list on July 2.
- Twinkle Papers will open its Rs 27.5 crore IPO for subscription from June 29 to July 1. The company plans to use the proceeds to purchase new machinery and install rooftop solar power plants. The stock will list on July 6.
- Sri Priyanka Geo Commex will open its Rs 94.5 crore IPO from June 24 to June 29. The capital raised will support the company's ongoing business expansion. The stock will list on July 2.
- IC Electricals will launch its Rs 47.9 crore IPO from June 25 to June 30 to support operational needs and manufacturing expansion. The shares will list on July 3.
- Crazy Snacks will open its Rs 31.5 crore IPO from June 25 to June 30. The offering consists of a fresh issue of 60 lakh shares and an offer for sale of 15 lakh shares. The stock will list on July 3.
