By Divyansh PokharnaThe Indian stock market closed last week with a 0.3% gain in the Nifty 50. Market sentiment was positive early in the week after US President Donald Trump announced a temporary pause in tariffs for Mexico and Canada, easing global trade concerns. However, caution set in later as investors awaited the Reserve Bank of India's (RBI) monetary policy decision. The central bank eventually cut the repo rate by 25 bps.
President Trump said on Sunday that he plans to announce a 25% tariff on all steel and aluminum imports, adding to existing duties. He also plans to introduce reciprocal tariffs matching other countries' rates on Tuesday or Wednesday, effective immediately. The move has raised global trade war concerns, pushing gold prices up over 1% on Monday as investors seek safe-haven assets.
IPO activity remains steady, with six companies set to list this week, eight opening for subscription, and two that debuted last week.
IPO buzz continues with three major launches this week
Ajax Engineering: This commercial vehicles maker manufactures concrete equipment, and specializes in self-loading concrete mixers (SLCM). The company dominates the SLCM market with over 75% share, creating a near-monopoly in the segment. It operates four manufacturing facilities in Karnataka, each focusing on different product categories.
As of September 30, 2024, Ajax has an extensive sales and service network, comprising 51 dealerships across 23 states in India.
The company's Rs 1,269.4 crore IPO is a complete offer for sale (OFS), meaning it will not receive any proceeds from the issue. The IPO opens for subscription on February 10 and will close on February 12, with a listing date set for February 17. Shares will be priced between Rs 599-629 per share.
Ajax Engineering’s revenue had surged 52% YoY to Rs 1,780 crore in FY24, while net profit jumped 66% to Rs 225 crore. The company has also maintained a high dividend payout, distributing 217% for FY24 and H1FY25. In January 2024, it adopted a formal dividend policy, aligning future payouts with its financial performance and growth outlook.
Hexaware Technologies: This IT software company offers AI-driven solutions in cybersecurity, data analytics, automation, and cloud computing. It serves clients in the financial services, healthcare, manufacturing, banking, and transportation sectors through specialized digital platforms like RapidX and Tensai.
With major offshore delivery centres in India—located in Chennai, Pune, Bengaluru, and Noida—along with operations in Sri Lanka, the company is expanding into Tier 2 cities. It also plans to establish new centres in Ahmedabad to strengthen its service capabilities and reach.
The company's Rs 8,750 crore IPO is a complete offer for sale (OFS). The IPO opens for subscription on February 12 and closes on February 14, and will list on February 19. Shares will be priced between Rs 674-708. In CY23, the company reported an 11% YoY revenue growth to Rs 10,389 crore, while net profit rose 13% to Rs 998 crore.
Quality Power Electrical Equipments: This heavy electrical equipment firm operates in the energy transition and power technology sector, providing high-voltage electrical equipment and grid connectivity solutions. The company specializes in power products across generation, transmission, distribution, and automation.
The Maharashtra-based firm aims to raise Rs 858.7 crore through its IPO, which includes a fresh issue of Rs 225 crore. It plans to allocate Rs 117 crore for acquisitions, along with funding capital expenditure for plant and machinery purchases. The company is also looking at inorganic growth opportunities through potential acquisitions and strategic initiatives. Its shares will be priced between Rs 401-425.
The IPO opens for subscription on February 14 and closes on February 18, with the listing date set for February 21. In FY24, the company reported a 21% YoY revenue growth to Rs 331 crore, while net profit increased by 39% to Rs 56 crore.
This energy transition and power technology company competes with listed players such as Transformers & Rectifiers (India), Hitachi Energy India, and GE Vernova T&D India.
Additionally, six SME IPOs are set to open for subscription this week
Maxvolt Energy sees highest profit growth, Voler Car & PS Raj follow
Chandan Healthcare will be the first SME IPO to open, with the subscription period from February 10 to 12. The issue size is Rs 107.4 crore, with a price band of Rs 151-159 per share. The IPO is expected to list on the NSE Emerge platform on February 17.
Three SME IPOs will open for subscription on February 12 and close on February 14, with all three scheduled to list on the NSE SME platform on February 19.
- Voler Car aims to raise Rs 27 crore through a fresh issue, with the price band set at Rs 85-90 per share.
- PS Raj Steels plans to raise Rs 28.3 crore, also entirely through fresh shares, with a price band of Rs 132-140 per share. The proceeds from this IPO will directly go to the company.
- Maxvolt Energy Industries has an issue size of Rs 54 crore, with a price band of Rs 171-180 per share.
The other two SME IPOs are set to open for subscription on February 13 and close on February 17, with both listings scheduled on BSE SME on February 20.
- LK Mehta Polymers has an issue size of Rs 7.4 crore, with a fixed price of Rs 71 per share.
- Shanmuga Hospital is offering shares at Rs 54 per share, aiming to raise Rs 20.6 crore through its IPO.
Chamunda Electrical stands out with the highest subscription for SME IPOs listing this week
The upcoming week will witness the listing of six SME IPOs on the bourses. Chamunda Electrical, an engineering firm, saw the highest subscription among last week's IPOs, with bids for 680X the total shares on offer.
Chamunda Electricals witnesses strong HNI demand
Chamunda Electrical’s HNI category subscribed 2558X. The company specializes in substation operations and solar power generation and will list on February 11 on NSE SME platform. In FY24, the company’s revenue rose 43.3% YoY to Rs 20 crore. It turned profitable in FY23 after reporting a net loss in FY22. Net profit saw a nearly 8X YoY surge in FY24.
Here’s the subscription details for other SME IPOs listing this week
Ken Enterprises, Amwil Health lead in terms of retail subscription
Two IPOs, Ken Enterprises and Amwill Health Care, will list on February 12, having received subscriptions of 4.1X and 5.5X, respectively. Meanwhile, Solarium Green Energy and Readymix Construction will debut on February 13 after closing on February 10, with subscription levels of 1.5X and 1.6X by the second day of bidding.
Eleganz Interiors, a furnishing company, will close its IPO bidding on February 11 after securing 1.2X subscription on the first day. It is set to list on February 14.
Dr. Agarwal’s Health Care makes a flat debut on the bourses
Dr. Agarwal's Health Care made a flat debut on the bourses on February 4, listing at its issue price of Rs 402. The eye-care specialist touched a high of Rs 425.5 on February 7 before paring gains and is currently trading at its issue price.
Dr. Agarwal’s Health Care makes a flat debut on Dalal Street
Dr. Agarwal’s offers a comprehensive range of eye care services, including cataract and refractive surgeries, consultations, diagnostics, and the sale of optical products, contact lenses, accessories, and pharmaceutical items.
Meanwhile, SME IPO Malpani Pipes And Fittings listed at a 4.6% discount to its issue price. The plastic products company is currently trading at a 9.4% discount.
