By Divyansh Pokharna
The market was muted for the second week in a row, with the Nifty 50 falling 0.4%. Negative global cues and limited positive domestic news didn’t help. But hopes for a third RBI rate cut at the next Monetary Policy Committee meeting, as well as low inflation and strong Q4FY25 GDP growth helped limit losses.
India’s economy grew 7.4% in Q4, supported by higher government capex and a 40.7% drop in subsidies compared to last year. The lower subsidy burden improved the government’s fiscal health. However, FY25 growth overall slowed sharply to 6.5%, the lowest in four years, down from 9.2% in FY24. The RBI forecasts 6.5% growth for the fiscal year starting April 2025.
Madan Sabnavis, Chief Economist at Bank of Baroda, said, “With low inflation and enough liquidity because of RBI’s measures, the MPC (Monetary Policy Committee) is likely to cut the repo rate by 25 bps on June 6.” He also expects the RBI to explain how global factors, like the end of the US tariff relief in July, could affect India’s economy.
The primary market is expected to be quiet this week, with no new IPOs on the mainboard and only one SME IPO opening. Eight listings are scheduled, including two mainboard companies, following six listings last week.
Eight new IPOs are lined up for listing this week
Prostarm Info Systems, an energy equipment manufacturer, closed its Rs 168 crore IPO on May 29 and is set to list on June 3. The issue was subscribed 97.2X overall, led by strong demand in the HNI category at 222.1X.
The company designs, manufactures, and sells energy storage and power conditioning equipment, catering to industries like healthcare, railways, defence, IT, and oil & gas. In FY24, its revenue rose 11.6% to Rs 259 crore, while net profit increased 17.8% to Rs 22.8 crore.
Prostarm Info and Scoda Tubes witness strong HNI demand
Another mainline IPO, Scoda Tubes, closed on May 30 with 14.2X overall subscription, led by HNI bids at 38X. The steel products maker is set to list on June 4. In FY24, its revenue grew 30.8% to Rs 402 crore, while net profit rose 77% to Rs 18 crore.
Additionally, six SME IPOs are set to list on the bourses this week:
SME IPO demand stays muted with a few bright spots
Three IPOs that closed on May 29 will list on June 3:
- Blue Water Logistics was subscribed 8.8X overall, with the HNI segment at 13.8X.
- Astonea Labs saw a 2.4X subscription, led by HNIs at 7.9X, while QIBs remained undersubscribed at 0.9X.
- Nikita Papers was subscribed 1.4X, with the QIB category at just 0.6X, the lowest among the three.
Two other IPOs closed on May 30 and are set to list on the NSE SME platform on June 4:
3B Films, a packaging company, launched its IPO on May 30 and is set to close on June 3. It is scheduled to list on June 6 and has received a 0.8X subscription so far.
Six new companies debuted on the bourses in the past week
Borana Weaves and Belrise Industries debuted on the bourses last week. Borana listed at a 12% premium after 148.8X subscription, while Belrise Industries listed at an 11.1% premium after receiving 41.3X subscription. However, both stocks later gave up their listing gains.
Schloss & Aegis Vopak gain post listing, while Borana & Belrise see declines
Two SME IPOs, Dar Credit & Capital and Unified Data Tech Solutions, listed at a premium to their issue prices. Dar Capital later gave up some gains and is now up 5.8%. Unified Data has continued to rise and is currently up 12.4%.
Two more mainline IPOs, Schloss Bangalore (The Leela Hotels) and Aegis Vopak Terminals, listed on June 2 at a discount of over 6%. Schloss was subscribed 4.5X, with retail participation at just 0.8X. Aegis saw a muted 2.1X response, with both retail and HNI segments undersubscribed. Post-listing, Aegis has edged up to a 1% gain, while Schloss is trading at a 1.2% discount.
An SME firm, Ganga Bath Fittings, to open for subscription this week
Ganga Bath Fittings, a bathroom accessories maker, will open its Rs 32.7 crore IPO on June 4, close on June 6, and list on June 11 on the NSE SME platform. The issue is entirely a fresh offering, priced at Rs 46–49 per share.
Ganga Bath Fittings’ net profit surges 8X in FY24
The company manufactures and supplies products like taps, showers, sanitaryware, door handles, and sinks. In FY24, its revenue rose 4.3% to Rs 32 crore, while net profit surged 8X to Rs 2.5 crore, aided by inventory destocking and lower finance costs.
It plans to use the IPO proceeds for capex on machinery, repayment of borrowings, funding working capital needs, and general corporate purposes.