Last week was a turbulent one for the market. The Nifty 50 dropped over 4.3%, following the US Federal Reserve’s cautious remarks on the pace of future rate cuts, and the outlook for the economy: “it’s like…walking into a dark room full of furniture,” he said, “you just slow down”. While the Fed reduced the benchmark rate by 25bps on December 18, it now projects only two cuts in 2025. 

Analysts believe this hawkish stance may weaken investor sentiment, lower foreign inflows, and increase market volatility for India. FIIs (foreign institutional investors) sold equities worth over Rs 15,828 crore during the week. However, they have a positive outlook about India's long-term growth.

Meanwhile, IPO activity remains robust as the year nears its close - eleven companies debuted last week, another eleven are set to list this week, while three IPOs are opening for subscription.

Let’s take a look at the IPO activity scheduled for this week:

Eleven new companies made their market debut last week

The stock market saw eleven IPOs debut last week, with five from the mainline segment and six in the SME category.

One MobiKwik, Inventurus, and others witness premium listings

One Mobikwik Systems, a software company, debuted with a 57.7% premium on December 18. The stock continued its upward momentum, hitting a 20% upper circuit on its first trading day. Despite reporting losses in Q1FY25, FY23, and FY22, investors were undeterred and the company attracted a strong subscription of 119.4X for its Rs 572 crore IPO.

Sai Life Sciences, a pharmaceutical company, listed with an 18.4% premium on December 18, the lowest among this week’s mainline IPOs. The retail portion was subscribed 1.37X, contributing to a total subscription of 10.3X. Post-listing, the stock extended gains to 28.2%. The issue size of the IPO stood at Rs 3,042.6 crore.

Inventurus Knowledge Solutions, a healthcare services firm, listed with a 43% gain on its debut, which later rose to 50.9% on its listing day. The company is currently trading at a premium of 41.9%.

Vishal Mega Mart, a department stores chain, and International Gemmological Institute, a misc. commercial services company, listed with 33.3% and 22.3% premiums, respectively, but saw declines of 3.6% and 9.3% after listing.

Six SME IPOs debuted last week, only one listed at a discount.

Toss The Coin, Yash, and Hamps Bio soar post stellar debut

Toss The Coin and Yash Highvoltage both listed at premiums of 90% and are hitting upper circuits every day since their listing. Toss The Coin, a consulting services company, received total subscription of 952.6X, with the retail category subscribed 2,060.8X. The company has already surpassed its H1FY25 revenue compared to FY24. Meanwhile, Yash Highvoltage, a heavy electrical equipment manufacturer, attracted a 439X bid in the HNI category for its Rs 110 crore IPO. 

Supreme Facility Management, a misc. commercial services company, listed at a 1.3% discount to its issue price of Rs 76. The IPO, with an issue size of Rs 50 crore, debuted on the NSE SME platform on December 18 and fell further to 15.3% post listing.

Hamps Bio, a food products company, listed with a 90% premium and rose further post-listing. Jungle Camps India, a hotels firm, also debuted at a 90% premium but saw a significant drop of 35.2% after listing. Purple United Sales, an apparel company, saw an initial gain of 57.9% and extended its gains to 82.5% thereafter.

Eleven IPOs are listing this week, mainline takes the lead

Investors can expect a packed week with eleven IPOs set to list – eight in the mainline segment and three in the SME category.

Mamata Machinery and DAM Capital see strong HNI demand

Mamta Machinery, an industrial machinery manufacturer, received the highest bids in the mainline category by the end of Day 2 of its IPO, which closes on December 23. The Rs 179.4 crore issue was subscribed 37.8X overall, with the HNI and retail categories seeing subscriptions of 50.2X and 51X, respectively. The company specializes in machinery for plastic bags, pouches, packaging, and extrusion equipment.  

Four other IPOs set to close on December 23 also witnessed notable demand. DAM Capital Advisors, Transrial Lighting, Sanathan Textiles, and Concord Enviro Systems were subscribed 7X, 5.3X, 1.4X, and 1.3X, respectively, by day two. These IPOs are scheduled to list on December 27.  

Meanwhile, three IPOs that opened for bidding on December 20—Senores Pharmaceuticals, Ventive Hospitality, and Carraro India, received subscriptions of 1.8X, 0.7X, and 0.1X, respectively, on their first day. These companies are expected to list on December 30.

Three IPOs are set for listing this week in the SME category.  

NACDAC witnesses record HNI subscription, retail segment close behind

NACDAC Infrastructure, a construction and engineering company, received an impressive subscription of 1,976.1X the total shares available in its IPO, with the HNI category subscribed 5,237.1X. The Rs 10 crore issue is a complete fresh issue with no offer for sale. The company specializes in constructing multi-story residential, commercial, and institutional buildings. The company is set to list on December 24.

Identical Brain Solutions, an entertainment company, saw a subscription of 506.1X its IPO size of Rs 20 crore. The company operates in the movies and entertainment sector and is scheduled to list on December 26 on the NSE SME platform. Its post-IPO price-to-earnings* (PE) ratio is 15.7, significantly lower than the industry average of 58.2. The movies and entertainment industry has delivered a robust return of 194.4% in the past year.

Newmalayalam Steel, a steel products manufacturer, saw its Rs 41.8 crore IPO subscribed 5.5X by Day 2. The company manufactures galvanized pipes, sheets and tubes. The company intends to utilize its IPO proceeds for IT and technology upgrades, expanding a solar facility, constructing a new factory shed, marketing and brand-building initiatives.

*Note: The post-issue P/E ratio is calculated using the issue price divided by the post-issue EPS, based on annualized FY earnings as of March 31, 2024, from the RHP.

Upcoming subscriptions: Three new offerings are set to open this week

Three IPOs are scheduled to open for subscription this week, including one in the mainline segment and two in the SME category.

Unimech and Solar91 lead in terms of FY24 revenue growth

Unimech Aerospace and Manufacturing: This industrial machinery company, is set to launch a mainline IPO with an issue size of Rs 500 crore. The IPO will open on December 23 and close on December 26, with shares scheduled to list on December 31. The company specializes in manufacturing complex tools, mechanical assemblies, electro-mechanical systems, and components for aeroengine and airframe production.

The funds raised through this IPO will primarily be used to support capital expenditure for expansion, including the purchase of machinery and equipment. The company also plans to allocate funds for working capital requirements and repayment or prepayment of certain borrowings by its material subsidiary.

In FY24, the company’s revenue increased by 125% YoY and net profit rose by 155%. 

Anya Polytech & Fertilizers: This packaging company is launching an IPO with an issue size of Rs 44.8 crore. The IPO opens on December 26, closes on December 30, and will list on January 2 on the NSE SME. The company specializes in fertilizers, bag manufacturing, and environmental solutions. 

The IPO proceeds will be used to meet capital expenditure and working capital requirements for both Anya Polytech and its subsidiaries, including Yara Green Energy and Arawali Phosphate. In FY24, Anya Polytech’s revenue increased by 8% YoY, and net profit rose by 75%.

Solar91 Cleantech: This electric utilities company provides engineering, procurement, and construction (EPC) solar energy solutions. The company caters to commercial and industrial clients by helping them reduce power consumption through renewable energy systems. The company plans to use the IPO proceeds for investment in a subsidiary focused on solar project development as an Independent Power Producer (IPP), working capital requirements, and general corporate purposes.

It is launching an IPO with an issue size of Rs 106 crore, which opens on December 24 and closes on December 27, with listing on January 1 on the BSE SME platform. In FY24, Solar91's revenue rose by 14%, and net profit soared by 1060%