The Indian stock market ended last week with a 2.3% rise in the Nifty 50, although it closed flat on Budget Day despite key announcements by Finance Minister Nirmala Sitharaman, including a major income tax relief package.

Markets opened weak on February 3 amid growing global uncertainty triggered by fresh tariff announcements from the Trump administration. US President Donald Trump signed orders imposing a 25% tariff on goods from Mexico and Canada, and a 10% tariff on all imports from China, sparking a trade war likely to reshape global supply chains.

India’s IPO activity remains steady after closing 27 IPOs worth Rs 7,354 crore in January. Last week saw five new listings, while two more are set to debut this week and five will open for subscription.

Dr. Agarwal’s Health witnesses muted interest in retail & HNI segments

Dr. Agarwal's Health Care witnesses a muted demand for its IPO with a subscription of 1.6X the total shares on the offer. The retail and HNI category remains undersubscribed at 0.4X. This eye-care specialist’s IPO will list on the bourses on February 4. 

In FY24, the company’s revenue increased by 33.4% YoY to Rs 1,376.5 crore. However, net profit declined by 7.9% to Rs 95.1 crore, primarily due to higher tax expenses compared to a deferred tax credit of Rs 40 crore in FY23. 

According to the RHP, Dr. Agarwal's Health Care lists Apollo Hospitals, Fortis Healthcare, and Max Healthcare as peers, with price-to-earnings (PE) ratios of 82, 68, and 97, respectively. In contrast, its own PE ratio of 160.5 is considerably higher.

The company offers a wide range of eye care services, including cataract and refractive surgeries, consultations, diagnostics, and the sale of optical products, contact lenses, accessories, and pharmaceutical items. It plans to use the IPO proceeds for repayment/prepayment of borrowings, general corporate purposes, and potential inorganic acquisitions.

Dr. Agarwal’s IPO sees muted demand in retail & HNI categories

Malpani Pipes and Fittings, a plastic pipes manufacturer, closed its subscription on January 31. The SME IPO is set to list on February 4, having received bids of 136.9X for the total shares on offer, with the HNI category subscribing 458X. The company plans to use the IPO proceeds for capital expenditure on machinery, debt repayment, and general corporate purposes.

Five new SME IPOs to open for subscription this week

The upcoming week will see the opening of five SME IPOs and no mainline IPO to open. 

Profit growth outpaces revenue growth for upcoming IPOs

The SME IPO segment remains active next week, with Chamunda Electricals opening for subscription on February 4. The engineering firm, specializing in electrical substation operations and maintenance, aims to raise Rs 14.6 crore, closing on February 6.

Ken Enterprises, a textile manufacturer, is set to launch the largest IPO among the five SME listings this week, raising Rs 83.7 crore through a fixed price issue at Rs 94 per share from February 5-7. Amwill Healthcare, a dermatological solutions company, will also open its Rs 60-crore IPO during the same period.

Readymix Construction Machinery, offering engineering solutions for plant and machinery, plans to raise Rs 37.7 crore via IPO from February 6-10. Eleganz Interiors, an interior solutions provider, will open its Rs 78.1 crore IPO from February 7-11.

Denta Water & Infra delivers listing gains of over 10%

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

Listing gains fade with a slowdown in IPO activity

Denta Water and Infra Solutions, a non-electric utilities company, was the only mainline IPO to list this week. Among the IPOs that debuted, Denta Water received the highest premium, launching at 10.5% and currently trading at a 15.2% gain. This fully fresh IPO saw strong demand, with overall bids reaching 221.7X and HNI subscriptions soaring to 507.3X.

Additionally, four SME IPOs listed on the bourses. Two of them—H. M. Electro Mech and CLN Energy—debuted at 8% and 2.4% premiums, respectively. H. M. Electro Mech later fell, trading at just 0.1% gains, while CLN Energy rose to 6.1% gains. 

The other two SME IPOs, GB Logistics and Rexpro Enterprises, listed at around a 20% discount, and subsequently declined further to 24% and 34% below their listing open price.