The Nifty 50 declined 1% last week, weighed down by rising uncertainty surrounding tariff announcements by US President-elect Donald Trump, who assumes office on January 20. Market sentiment was further dampened by mixed Q3 earnings, persistent FII outflows, and rising oil prices. Additionally, the rupee depreciated beyond Rs 86 against the US dollar, marking a lifetime low.

India's leading IT firms—Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, and Tech Mahindra—delivered mixed Q3FY25 earnings. Revenue growth varied on a QoQ basis, with HCL Tech leading at 3.6%, followed by Infosys at 1.9%. TCS posted flat revenue growth, aligning with expectations, while Wipro surprised analysts with positive growth, defying forecasts of a decline.

However, IPO activity remains steady - eight companies debuted last week, five are set for listing this week, and four others are opening for subscription.

Let’s take a look at this week’s IPO activity.

Eight new companies debuted on the bourses last week

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

Sat Kartar, Avax Apparels witness strong debut; Capital Infra lists at a discount

Sat Kartar Shopping, a pharmaceutical firm, debuted on January 17 with a 90% premium to its issue price of Rs 81. The Rs 33.8 crore IPO, a completely fresh issue, was subscribed 316X, with the HNI category subscribing 1069X. In FY24, the company’s revenue rose 54.4% YoY, while net profit surged 151.6%.  

Avax Apparels and Ornaments, a textiles company, was listed on January 14 at a 90% premium to its issue price. The Rs 1.9 crore IPO was subscribed 247.2X the total shares on offer. The company is involved in wholesale trading and online retail of silver ornaments.

Capital Infra Trust, a roads & highways developer, listed at a 1% discount to its issue price. The company witnessed lukewarm demand, with its IPO subscribed 2.8X overall. The QIB segment was subscribed 0.7X, while the retail category saw no bids. In FY24, the company's revenue declined by 38.7% YoY, and net profit fell sharply by 74.8% YoY.

B. R. Goyal Infrastructure, a construction firm, listed at a 0.6% premium on January 14, and Barflex Polyfilms, a packaging company, listed flat on January 20 but then hit its 5% upper circuit.

Three other IPOs—Delta Autocorp, Laxmi Dental, and Quadrant Future Tek—listed at 34.6%, 32.8%, and 27.6% premiums to their issue prices, respectively. Quadrant Future Tek, an electrical equipment manufacturer, then rose to a 106.2% gain as of January 17.

Five new IPOs are set for listing this week, SMEs dominate 

This week will see the listing of five IPOs, including four in the SME category and one in the mainline segment.

Kabra Jewels and Rikhav Securities see strong HNI demand

Kabra Jewels, a gems & jewellery firm, saw a strong subscription of 310.8X for its Rs 40 crore SME IPO, with HNI bids reaching 695.8X. The company is engaged in retail jewellery and offers gold, diamond, and silver ornaments. It will list on January 22 on the NSE SME platform. Its post-IPO P/E ratio of 10.2 is significantly below the industry average of 85.7. (The post-issue P/E ratio is based on the issue price divided by post-issue EPS, calculated from annualized FY earnings as of March 31, 2024, as per the RHP).  

Rikhav Securities, a capital markets company, secured a subscription of 285.3X and will list on January 22 on the BSE SME platform. The IPO proceeds will fund working capital needs and IT infrastructure. In FY24, its revenue grew 104.2% YoY, while net profit rose 123.2%. The post-IPO P/E ratio stands at 3.3, much lower than the industry average of 16.1.

Two IPOs are set to list on January 23: Stallion India Fluorochemicals, a specialty chemicals company, and Landmark Immigration Consultants, a travel support services provider. By Day 2, the companies had received bids of 32.1X and 6X, respectively. Stallion's issue size is Rs 199.5 crore, while Landmark's is Rs 40.3 crore, with both IPOs closing on January 20.

EMA Partners India, a misc. commercial services company, began its Rs 76 crore IPO subscription on January 17. The firm offers specialized leadership hiring solutions across sectors, globally recruiting business and functional leaders. It will list on January 24, with FY24 revenue growing 34.8% YoY and net profit surging 364.8%.

CapitalNumbers Infotech, an IT consulting & software firm, opened its IPO bidding on January 20, with the process set to close on January 22. The company will list on January 27. CapitalNumbers provides digital consulting and IT engineering services, offering end-to-end software development solutions globally. The IPO proceeds will be utilized for technological upgrades, business development, subsidiary investments, acquisitions, and general corporate purposes.

Upcoming subscriptions: Four new offerings to open this week

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

CLN Energy and Rexpro see strong profit growth YoY in FY24

CLN Energy: This electrical equipment company manufactures customized lithium-ion batteries and motors, along with powertrain components such as controllers, throttles, direct current-to-direct current (DC-DC) converters, displays, and differentials. Its Rs 72.3 crore IPO will open on January 23 and close on January 27, with listing scheduled for January 30 on the BSE SME platform.  

In FY24, the company’s revenue grew 3.1% YoY, and net profit surged 1241.1%. However, it has inconsistent financials, with net profit dropping from Rs 3.6 crore in FY22 to Rs 0.7 crore in FY23. The company plans to use the IPO proceeds to fund machinery purchases, working capital, and general corporate purposes.

Rexpro Enterprises: This furniture company manufactures various products for offices, hospitals, government facilities, and the home segment. Its Rs 53.7 crore IPO will open on January 22 and close on January 24, with listing set for January 29 on the NSE SME platform.  

In FY24, the company’s revenue grew 32% YoY, while net profit surged 722.2%. The company will use IPO proceeds for equipment purchases, factory renovation, working capital needs, inorganic growth initiatives, and general corporate expenses.

Denta Water and Infra Solutions: This non-electrical utilities firm will open its Rs 220.5 crore IPO on January 22, closing on January 24, with its listing scheduled for January 29. The company specializes in designing, installing, and commissioning water management infrastructure projects, including groundwater recharge systems.  

The IPO proceeds will address the company’s working capital requirements and general corporate purposes. In FY24, the firm’s revenue grew 37.6% YoY, while net profit increased 19.2%. 

GB Logistics Commerce: This logistics company will open its Rs 220.5 crore IPO on January 24, closing on January 28, with listing slated for January 31 on the BSE SME platform.  The company offers logistics solutions, providing skilled drivers, a diverse vehicle fleet, and a flexible charter network for high-capacity transportation.  

The IPO proceeds will be utilized for prepayment or repayment of certain borrowings, meeting working capital needs, funding the purchase of truck chassis and bodies, and general corporate purposes.