By Divyansh PokharnaThe Nifty 50 rose by 1% last week despite concerns over tariffs and geopolitical tensions. All credit goes to the RBI, which surprised the market with a 50 bps repo rate cut to 5.5%, twice the expected 25 bps cut. The RBI also reduced the CRR (cash reserve ratio) by 100 bps to 3%, to boost liquidity.
Following the rate cut, Bank of Baroda announced a 50 bps reduction in its benchmark lending rate. Meanwhile, private sector HDFC Bank lowered its marginal cost of funds-based lending rates (MCLR), which are linked to home loans, by 10 bps across all tenures.
The primary market is set to see five IPOs in the coming week, including one mainboard IPO. Meanwhile, only one listing is scheduled, following the debut of eight IPOs in the previous week.
A pump manufacturer to raise Rs 890 crore via fresh issue
Oswal Pumps is a manufacturer and distributor of pumps used in domestic, agricultural, and industrial applications. Its product lineup includes solar pumps, pressure pumps, sewage pumps, electric motors, and electric panels.
The IPO will open on June 13, close on June 17, and is scheduled to list on the bourses on June 20. The company has reserved up to 50% of the IPO for qualified institutional buyers (QIBs), not less than 35% for high net-worth individuals (HNIs), and not less than 15% for retail investors.
All firms reported revenue and net profit growth in FY24
The pump maker’s IPO comprises a fresh issue of Rs 890 crore and an offer for sale of 81 lakh shares by promoter Vivek Gupta. The company plans to use the proceeds to fund capital expenditure, set up new manufacturing units in Haryana, invest in its subsidiary Oswal Solar, and prepay/repay outstanding borrowings of both Oswal Pumps and Oswal Solar.
The company exports to 17 countries across the Asia-Pacific, Middle East, and North Africa regions. In FY24, Oswal Pumps' revenue nearly doubled to Rs 761 crore, while net profit surged 2.9X to Rs 98 crore.
Additionally, four SME IPOs are set to open for subscription:
Sacheerome: This fragrance manufacturer will open its IPO on June 9, with the subscription closing on June 11, and listing scheduled for June 16 on the NSE SME platform. The company operates in the B2B FMCG space, focusing on designing and manufacturing fragrances and flavors. The Rs 61.6 crore IPO is entirely a fresh issue, with a price band of Rs 96–102 per share.
Jainik Power and Cables: This aluminium products company manufactures and supplies aluminium wire rods, selling mainly in Delhi, Haryana, Rajasthan, Uttar Pradesh, and Uttarakhand. Its Rs 51.3 crore IPO is entirely a fresh issue, with a price band of Rs 100–110 per share. The IPO opens on June 10, closes on June 12, and will list on the NSE SME platform on June 17. Its FY24 net profit surged 33 times to Rs 5 crore, driven by inventory destocking and a 402% jump in revenue.
Monolithisch India: This electrodes manufacturer is launching its IPO on June 12, with subscription closing on June 16 and listing scheduled for June 19 on the NSE SME platform. The company specializes in making specialized ramming mass used for heat insulation in induction furnaces for iron, steel, and foundry plants. Its Rs 82 crore IPO is a fresh issue, priced between Rs 135 and 143 per share.
Samay Project Services: This construction & engineering firm provides EPC services, focusing on design and commissioning of balance of plant (BOP) systems. Its projects include piping systems, tanks and structures, and fire protection setups.
Its Rs 14.7 crore IPO is entirely a fresh issue, with a price band of Rs 32–34 per share. The IPO opens on June 16, closes on June 18, and will list on the NSE SME platform on June 23.
Moderately subscribed Ganga Bath Fittings to list on June 11
Ganga Bath Fittings, a bathroom accessories maker, launched its IPO on June 4 and closed on June 6. It is set to list on June 11 on the NSE SME platform. The IPO was subscribed 1.6X overall, with the HNI category undersubscribed at 0.8X.
Ganga Bath Fittings sees muted HNI participation
The company manufactures and supplies taps, showers, sanitaryware, door handles, sinks, and similar products. IPO proceeds will be used for machinery purchases, debt repayment, and working capital.
In FY24, its revenue rose 4.3% to Rs 32 crore, while net profit jumped 8X to Rs 2.5 crore, supported by inventory destocking and lower finance costs.
Eight new companies debuted on the bourses in the past week
Prostarm Info Systems and Neptune Petrochemicals posted the highest listing gains last week. Prostarm listed at a 14.3% premium after a 97.2X subscription, while Neptune listed at an 8.9% premium after a 3.9X subscription. However, both stocks later gave up their gains.
3B Films and Nikita Papers were the only IPOs to list at a discount. 3B Films debuted 3% below its issue price, and Nikita Papers at 13.5% below. Both IPOs were subscribed 1.8X and 1.4X, respectively. Currently, 3B Films trades at a 7.8% discount, and Nikita Papers is down 8.8%.
IPO gains fade for some, while others sustain momentum
Scoda Tubes and N R Vandana Tex Industries listed at their issue prices. Scoda later gained and now trades 9.4% above its issue price, while N R Vandana fell to a 12.2% discount.
Blue Water Logistics and Astonea Labs listed with mild gains of 4.4% and 1.8%. They had bids of 8.8X and 2.4X, respectively.
