By Divyansh PokharnaThe Indian stock market bounced back last week, ending a three-week losing streak. The Nifty 50 rose 1.9%, overcoming weak global trends and tariff worries. A fall in the dollar index and liquidity infusion by the Reserve Bank of India (RBI) supported this recovery. On Wednesday, the RBI announced plans to inject Rs 1.9 lakh crore into the banking system in March to improve liquidity, through government securities purchases and USD/INR swaps.
Vinod Nair, Head of Research at Geojit Financial Services, said, "Metals, capital goods, and energy stocks performed well due to optimism over China’s stimulus and lower crude oil prices. A weaker dollar index also boosted investor confidence in emerging markets". In India, the Index of Industrial Production (IIP) and Consumer Price Index (CPI) inflation data will be closely watched this week, offering insights into the country's economic growth.
The mainboard IPO market will stay inactive for the fourth consecutive week. Four IPOs will open in the SME segment this week, and one is scheduled for listing, following three debuts last week.
Citi’s Rahul Saraf highlighted that IPOs require more than just good pricing; they need the right investors for long-term stability. Anchor investors play a key role in this, by setting the tone, participating in the main book, and potentially investing post-listing. He also noted that nearly Rs 1.5 lakh crore worth of IPOs are in the pipeline, but with market uncertainty, timing is everything.
NAPS Global’s IPO, which attracted retail interest, to list this week
NAPS Global India: This textile company imports fabrics in bulk and supplies them to garment manufacturers in India. Its IPO closed on March 6 and is set to list on March 11 on the BSE SME platform. The issue saw an overall subscription of 1.2X, mainly driven by retail investors, while the HNI category remained undersubscribed at 0.8X.
NAPS Global witnesses weak HNI demand; retail drives overall subscription
NAPS Global plans to use the IPO proceeds for working capital and general corporate purposes. In FY24, its revenue grew 83% YoY, while net profit surged 437% YoY.
Four SME IPOs set to open this week, two logistics players in the mix
Super Iron Foundry: This auto parts manufacturer is set to open its IPO on March 11, with the subscription closing on March 13. The listing is scheduled for March 19 on the BSE SME platform. It aims to raise Rs 68 crore through a fresh issue, priced at Rs 108 per share.
The company manufactures castings that are used across multiple industries, including municipal infrastructure, water supply (ductile iron pipe fittings), automotive, agriculture, and railways.
Super Iron & Paradeep lead in FY24 revenue growth, while others struggle
PDP Shipping & Projects: This logistics solutions provider is set to launch its IPO on March 10, with the subscription closing on March 12. The listing is scheduled for March 18 on the BSE SME platform.
The company offers end-to-end logistics services, including sea and air freight, customs clearance, and project logistics. Its Rs 12.7 crore IPO is a fresh issue, priced at Rs 135 per share.
Paradeep Parivahan: This logistics company, based at Paradip Port in Odisha, specializes in port services, including cargo handling, vessel maintenance (ship husbandry), and related logistics. Its Rs 44.9 crore IPO is a fresh issue, with a price band of Rs 93-98 per share. The IPO will open on March 17, close on March 19, and list on March 24 on the BSE SME platform.
Divine Hira Jewellers: This jewellery maker is set to open its IPO on March 17, with the subscription closing on March 19 and listing scheduled for March 24. The company specializes in designing and marketing 22 karat gold jewellery, catering to wholesalers, showrooms, and retailers. Its Rs 31.8 crore IPO is a fresh issue, priced at Rs 90 per share.
Three companies debuted on Dalal Street in the past week
Balaji Phosphates debuted on the stock exchanges on March 7, opening 7.1% above its issue price of Rs 70. The stock is currently trading with a 6.2% gain.
Weak debuts for Nukleus, Shreenath Paper; Balaji Phosphates sees premium listing
Nukleus Office Solutions and Shreenath Paper Products both listed at a 20% discount to their issue prices. Nukleus Office is now down 18.2%, while Shreenath Paper has dropped further, trading 31.4% lower.
Challenging market halts IPO momentum
SEBI approved IPOs for 26 domestic companies between April and December 2024, but these companies have not launched their offerings yet. Together, these firms plan to raise Rs 42,390 crore. After approval, companies have up to 12 months to launch their IPOs.
Weak market sentiment has forced many companies to delay their IPOs and postpone their listings. However, as conditions improve, these IPOs are now preparing to go public. Here’s a look at the ones that were postponed and are set to hit the market soon.
- Ather Energy: Ather Energy's IPO, initially expected in December 2024, is now likely to launch in March 2025. The offer includes a fresh issue worth Rs 3,100 crore and an OFS (offer for sale) of 2.2 crore shares. Backed by Hero MotoCorp, the company is targeting a $2-2.3 billion valuation for its IPO.
- HDB Financial Services: HDB Financial Services is under scrutiny for a possible violation of the Companies Act, 2008, after SEBI found it issued shares to over 50 HDFC Bank employees through a private placement. This may exceed legal limits and require SEBI approval. The NBFC is expected to raise Rs 12,500 crore through its IPO in 2025, including a Rs 2,500 crore fresh issue and a Rs 10,000 crore OFS. It filed its DRHP with SEBI in November 2024.
- JSW Cement: SEBI has approved JSW Cement’s Rs 4,000 crore IPO, which includes a Rs 2,000 crore fresh issue and a Rs 2,000 crore OFS. Although the company received approval in January, the listing has been delayed. The IPO is expected to launch later this year.
- HeroFin Corp: Hero FinCorp’s IPO was initially expected to open between March 3 and March 5, 2025. The Rs 3,668.1 crore issue includes a fresh issue of Rs 2,100 crore and an offer-for-sale (OFS) of Rs 1,568 crore.
- LG Electronics India: LG Electronics India's IPO was expected to be listed in the first or second week of March 2025. The Rs 15,000 crore offering will be a complete offer-for-sale (OFS), with its Korean parent selling around 10.2 crore equity shares. The company filed its DRHP with SEBI in December 2024.
- Greaves Electric Mobility: Greaves Electric Mobility's IPO was expected to open in the second week of March 2025. The offer will include a Rs 1,000 crore fresh issue and an offer-for-sale (OFS) of up to 18.9 crore shares. The company is known for its 'Ampere' e-scooters and manufactures three-wheelers under the Greaves Cotton firm.
- Avanse Financial Services: Avanse Financial Services planned to launch its IPO from December 23 to 26, 2024. The Rs 3,500 crore issue includes a fresh issue of Rs 1,000 crore and an offer-for-sale (OFS) of Rs 2,500 crore.
In addition to the postponed IPOs, several well-known companies are preparing to go public, including PhonePe, Zepto, Reliance Jio, Boat, National Securities Depository (NSDL), and OYO.
OYO Hotels is accelerating its IPO plans as it faces a year-end debt repayment deadline. Creditors have asked OYO founder Ritesh Agarwal to repay $383 million from a multibillion-dollar loan package if the IPO does not launch by October. The lenders may consider extending the repayment deadline to 2027 but only if Oyo goes public this year.
