By Divyansh PokharnaThe market bounced back last week, with the Nifty 50 rising 1.6%, despite rising tensions in the Middle East and a surge in crude oil prices. The sentiment was supported by the RBI’s move to ease project financing norms, reducing the required provisioning from 5% to 1%. PSUs like Power Finance Corp, IREDA, and HUDCO jumped over 3.9% on this news.
But there is no relief on the global front. Tensions in the Middle East worsened, as the US struck three Iranian nuclear sites, raising fears that Iran could block the Strait of Hormuz, a vital route for a fifth of global oil and gas trade. Brent crude rose 3.8% last week, closing at $77, and is trading 1.7% higher on June 23.
But the IPO market is signalling optimism amid a wave of new issues. The primary market is set for a packed week, with 18 IPOs worth over Rs 15,000 crore hitting Dalal Street, including six mainboard offerings. Additionally, six companies are scheduled to list, following six listings last week.
Commenting on the primary market activity, Bajaj Broking Research said, “Market sentiment remains broadly constructive, supported by improving macroeconomic indicators, favourable liquidity conditions, and rising interest from both institutional and retail investors.”
Six new companies debuted on the bourses over the past week
Oswal Pumps, a pump manufacturer, listed on June 20 at a 3.3% premium over its issue price of Rs 614. The IPO saw an overall subscription of 34.4X, including a strong 88.1X response from QIBs.
Oswal Pumps declines post listing; SMEs deliver mixed performances
Among SME listings, Monolithisch India and Patil Automation debuted with healthy gains.
Monolithisch India saw 170.1X subscription and is now trading 69.6% higher than its issue price. Patil Automation, which was subscribed 94.3X, is currently up by 35.6%.
Samay Project Services listed on June 23 at a 6% premium to its IPO price of Rs 34. The IPO was subscribed 27X, and the stock is now trading at a 7.3% gain.
In contrast, Aten Papers & Foam and Jainik Power & Cables listed at a discount of 6.3% and 25.4%, respectively. Post-listing, both stocks declined further—Aten is down 15.4%, while Jainik is trading at a 33.6% discount from its issue price.
Busy week ahead with 18 new offerings, 6 from the mainboard
Three mainline IPOs will open for subscription on June 24, close on June 26, and are scheduled to list on July 1.
Kalpataru: A familiar name in the real estate sector, Kalpatru develops residential and commercial properties, retail spaces, and townships across various Indian cities. Its IPO is a fresh issue of Rs 1,590 crore, priced in the range of Rs 387–414 per share. The company lowered its net loss to Rs 116 crore in FY24, down from Rs 229 crore in FY23. Funds from the IPO will be used to repay/prepay borrowings and for general corporate purposes.
Globe Civil Projects: This construction & engineering company works on an EPC (engineering, procurement, and construction) model, with projects completed across 11 Indian states. Its Rs 119 crore IPO is priced between Rs 67–71 per share. The company plans to use the proceeds for buying construction equipment and to meet its working capital needs.
Ellenbarrie Industrial Gases: The company produces industrial and medical gases such as oxygen, nitrogen, hydrogen, argon, and nitrous oxide. The company’s Rs 852 crore IPO includes a fresh issue of Rs 400 crore, with the rest being an offer for sale. The price band is Rs 380–400 per share. The IPO proceeds will be used to set up an air separation unit at its Bengal plant, repay borrowings, and for general corporate purposes.
Globe Civil & Ellenbarrie lead FY24 profit surge among mainline firms
Two other mainboard IPOs will open for subscription on June 25, close on June 27, and are scheduled to list on July 2.
HDB Financial Services: ThisNBFC, backed by HDFC, is launching the biggest IPO of the week, worth Rs 12,500 crore. The price band is set at Rs 700–740 per share. HDFC will sell shares worth Rs 10,000 crore through an offer-for-sale, while the remaining Rs 2,500 crore will be a fresh issue by the company.
HDB offers both secured and unsecured loans, including personal loans and loans against property, with a focus on underbanked segments. The IPO proceeds will fund the company’s tier-I capital base and support future lending across its business segments — enterprise lending, asset finance, and consumer finance.
Sambhv Steel Tubes: The company manufactures steel pipes and structural tubes (hollow sections). Its Rs 540 crore IPO includes a fresh issue of Rs 440 crore and an offer-for-sale worth Rs 100 crore. The price band is fixed at Rs 77–82 per share. The IPO proceeds will be used to prepay or repay part of the company’s borrowings and for general corporate purposes.
The last mainline IPO for the week, Indogulf Cropsciences will launch its IPO on June 26, close on June 30, and is scheduled to list on July 3. The company manufactures crop protection products, plant nutrients, and biologicals in India.
This agrochemicals firm’s IPO includes a fresh issue of Rs 160 crore along with an offer for sale of 36 lakh shares. The proceeds will fund working capital needs, repayment / prepayment of certain borrowings, and capital expenditure for setting up a facility in Haryana.
Additionally, twelve SME IPOs are set to open for subscription this week.
- AJC Jewel Manufacturers opened its IPO on June 23, will close on June 26, and list on July 1.
- Abram Food, Icon Facilitators, and Shri Hare-Krishna Sponge Iron will open on June 24, close on June 26, and list on July 1.
- Suntech Infra Solutions, Rama Telecom, and Supertech EV will open on June 25, close on June 27, and list on July 2.
- Moving Media Entertainment, Valencia India, Ace Alpha Tech, and PRO FX Tech will open on June 26, close on June 30, and list on July 3.
- Neetu Yoshi will open on June 27, close on July 1, and list on July 4.
Six new IPOs are lined up for listing this week
Arisinfra Solutions, the only mainboard IPO listing this week, opened for subscription on June 18, closed on June 20, and is set to list on June 25. The IPO was subscribed 2.6X, driven by strong retail interest at 5.6X, while QIB participation was lower at 1.4X.
The construction materials supplier’s Rs 499.6 crore issue is a completely fresh issue. IPO funds will be used for repaying borrowings, working capital needs, investment in subsidiary Buildmex-Infra, general corporate purposes, and future acquisitions.
Aris Infra sees tepid response; Eppeltone and Influx top SME subscriptions
Among SME IPOs, Eppeltone Engineers will be the first to list on June 24 on NSE SME. The Rs 44 crore IPO, fully a fresh issue, saw a strong response with 275.7X overall subscription, including 834.8X in the HNI category.
Influx Healthtech, which closed its IPO on June 20, will list on June 25. The company received 187.3X bids, with the HNI portion subscribed at 639.8X.
Mayasheel Ventures, Safe Enterprises Retail Fixtures, and Aakaar Medical Technologies, opened on June 20, will close on June 24, and are scheduled to list on June 27. On Day 1, they were subscribed 2.6X, 0.6X, and 0.3X, respectively.
