The Indian benchmark indices posted their biggest weekly gains since February 2021, with the Nifty 50 rising 4.5%. The rally was driven by a pause in US reciprocal tariffs, hopes of trade talks, and exemptions on some tech products by the Trump administration. Renewed buying by foreign investors as global funds look outside the US, also boosted market sentiment.

India’s top IT services companies—TCS, Infosys, and Wipro—disappointed with their March quarter and full-year FY25 results. They signalled increased caution ahead, as global trade tensions and macro uncertainties are affecting business sentiment among clients. Meanwhile, leading private banks HDFC, ICICI, and YES Bank posted their Q4 results last week, with all three reporting YoY growth in net profit.

Vinod Nair, Head of Research at Geojit Investments, said, “The earnings growth for the fourth quarter is likely to be weak because of low global demand and pressure on profit margins. Investors should be cautious and focus more on domestic-driven sectors like banking, consumer goods, healthcare, transportation, and infrastructure.”

This week, only one IPO is lined up in the SME segment, with no listings scheduled and no debuts seen last week.

An industrial machinery maker is set to launch its IPO

Tankup Engineers, an industrial machinery manufacturer, specializes in creating vehicle structures for mobility and storage. Their products include fuel tanks, mobile diesel tanks, aircraft refuelers, fire trucks, and ground support equipment.

Tankup Engineers’ net profit outpaces revenue growth in FY24

Tankup Engineers' IPO is set to open on April 23 and close on April 25, with its listing scheduled on April 30 on the NSE SME platform. The IPO is priced between Rs 133-140 and aims to raise Rs 19.5 crore through a fresh issue. 

In FY24, the company reported a 65% YoY revenue growth to Rs 19.5 crore and a 225% surge in net profit to Rs 2.6 crore.

What happened in the primary market last week?

• Prestige Group, a Bengaluru-based real estate developer, is reportedly preparing to launch an IPO for its hotels business, aiming to raise Rs 4,000 crore. The company is working with four investment banks, including Kotak Mahindra Capital and JM Financial. Its draft red herring prospectus (DRHP) is expected to be filed by the end of this month or early next month.
• Wakefit, a sleep and home solutions company, has selected three investment banks for its upcoming IPO. The company has hired Axis Capital, IIFL Capital Services, and Nomura as advisers. Wakefit aims to raise around Rs 1,500-2,000 crore through its IPO.
• Ather Energy is expected to lower the size of its IPO to between Rs 2,900-3,200 crore, down from the initial target of over Rs 3,500 crore. The electric two-wheeler maker is now aiming for a post-money valuation of around Rs 12,800 crore, lower than the earlier target of Rs 14,000 crore. This change in the IPO size is due to volatile market conditions and weaker investor interest.

Additionally, six companies received SEBI approval last week to launch their IPOs:

• Aye Finance: Rs 885 crore fresh issue, plus Rs 565 crore via an offer for sale.
• GK Energy: Rs 500 crore fresh issue, plus 84 lakh shares via offer for sale.
• Anthem Biosciences: Rs 3,395 crore via an offer for sale with no fresh issue component.
• BlueStone Jewellery and Lifestyle: Rs 1,000 crore fresh issue, plus 2.4 crore shares via offer for sale.
• Aegis Vopak Terminals: Rs 3,500 crore fresh issue, with no offer for sale component.
• Seshaasai Technologies: Rs 600 crore fresh issue, plus 78.7 lakh shares via offer for sale.