By Divyansh PokharnaThe market ended with moderate gains last week, with the Nifty 50 rising 1.3%. The uptick was supported by hopes of an early India-US trade deal, a weaker US dollar, and consistent FII buying. However, concerns over rising India-Pakistan tensions and mixed March quarter results limited further upside.
Following the Pahalgam terror attack, India has been gradually tightening restrictions on Pakistan. Vinod Nair, Head of Research at Geojit Investments, expects some caution in the near term due to ongoing geopolitical tensions but does not foresee a sharp market correction. He said "Globally, easing trade tensions between the US and China, along with a weakening US dollar, are seen as positive factors for emerging markets like India in the medium term."
Investors can expect increased activity in the primary market this week, with three SMEs launching their IPOs. Ather Energy will list on May 6, while four other SME IPOs will debut, following one that listed last week.
Ather Energy, which attracted retail interest, to list this week
Ather Energy closed its bidding on April 30 and is set to list on May 6. The IPO is subscribed 1.4X, with the retail category receiving bids of 1.8X. However, the HNI category remains undersubscribed at 0.7X.
Retail investors lead IPO subscriptions in most upcoming listings
The company’s revenue fell by 0.7% YoY to Rs 1,789.1 crore in FY24, while its net loss widened to Rs 1,059.7 crore, compared to losses of Rs 864.5 crore in FY23.
The 2-wheeler manufacturer plans to use its IPO proceeds for capital expenditure to set up an E2W factory in Maharashtra, repayment or pre-payment of some of the company's borrowings, investment in research and development, marketing initiatives, and general corporate purposes.
Additionally, four SME IPOs are set to list on the bourses this week:
Iware Supplychain Services: This logistics company is set to list on May 6 on the NSE SME platform. The Rs 27.1 crore IPO saw a total subscription of 2.9X with its retail category subscribing 3.1X. The company offers services like warehousing, transportation, and rake (train) handling across multiple states in India.
Arunaya Organics: This dye manufacturer will list on May 7 on the NSE SME platform. The company manufactures and exports specialty dyes and intermediates, used in industries such as textiles, paints, plastics, and mining. The Rs 34 crore IPO was subscribed 2.5X, with the HNI category subscribing the most at 4.1X.
Kenrik Industries: This jewellery maker remains undersubscribed at 0.8X by the end of day 3 of its bidding. Its subscription opened on April 29 and will close on May 6. The Rs 8.8 crore IPO is set to list on May 9. The company designs and distributes traditional Indian jewellery.
Wagons Learning*: This education provider offers corporate training, digital learning, and skill development solutions. Its Rs 38.4 crore IPO will close on May 6 and is set to list on May 9 on the BSE SME platform. The company saw no subscription on day 1 of its bidding.
*Note: On May 6, Wagons Learning announced it has withdrawn its IPO, citing prevailing market conditions as the reason.
Three SME IPOs are set to open for subscription this week
Manoj Jewellers: This jewellery maker is launching its IPO on May 5, with the subscription closing on May 7 and listing scheduled for May 12 on the BSE SME platform. The company is in the retail business of gold and diamond jewellery. Its Rs 16.2 crore IPO is a fresh issue, priced at Rs 54 per share.
Manoj Jewellers & Virtual Galaxy leads in FY24 profit growth; Srigee DLM lags behind
Srigee DLM: This plastic products maker is involved in designing and manufacturing plastic parts, assembling mobile phone components, and handling plastic materials and their trading.
It serves sectors like consumer durables, home appliances, automotive components, and electronics. Its Rs 17 crore IPO is a fresh issue, priced between Rs 94-99 per share. The IPO opens on May 5, closes on May 7, and is set to list on May 12 on the BSE SME platform.
Virtual Galaxy Infotech: This IT software firm is launching its IPO on May 9, with subscription closing on May 14 and listing scheduled for May 19 on the NSE SME platform. The company offers software products and services across sectors like banking, finance, e-government, and cloud computing etc. Its Rs 93.3 crore IPO is a fresh issue, priced in the range of Rs 135-142 per share.
During FY24, the company’s revenue increased 6.4% YoY to Rs 63.5 crore. Net profit surged 23X to Rs 16.5 crore, helped by lower inventory costs, employee benefits, and tax expenses.
Tankup Engineers witnesses strong listing in a volatile market
Tankup Engineers, an industrial machinery manufacturer, listed on April 30 at a 25% premium to its issue price of Rs 140. The IPO was heavily subscribed at 116.2X, with the HNI category bidding at 560.9X.
Tankup Engineers declines marginally post listing
The company hit a 5% upper circuit on its listing day but later declined and is now trading with a gain of 24.7%.
It manufactures vehicle structures used for mobility and storage, including fuel tanks, mobile diesel tanks, aircraft refuelers, fire trucks, and ground support equipment
