The Nifty 50 closed lower on September 15 as rising crude oil prices, higher global bond yields and renewed fears of a US rate hike weighed on sentiment. Indian equities opened higher, but gains faded as Brent crude moved above $108 per barrel and the US 10-year Treasury yield crossed 5%, raising concerns over foreign flows into emerging markets.

Oil remained the biggest pressure point. Crude prices jumped after Saudi Arabia shut its East-West pipeline following attacks on energy infrastructure by Yemen’s Iran-aligned Houthis. The pipeline is an important alternative route when shipments through the Strait of Hormuz are disrupted.

Domestic inflation data added to the caution. India’s Consumer Price Index (CPI) inflation rose to 4.8% in August from 4.5% in July, while Wholesale Price Index (WPI) inflation climbed to 9.9% from 9.8%. The rise in both inflation measures could reinforce rate-hike expectations, especially if crude prices remain elevated.

Looking ahead, investors will track the US Federal Reserve’s policy decision, US retail sales and industrial production data, crude oil prices, foreign investor activity and India’s foreign exchange reserves. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said, “The macro scenario will continue to be under pressure from the rising crude price.”

A packed week lies ahead for the primary market, with 17 companies preparing to list and 18 new issues opening for subscription. This comes after seven IPOs made their market debut last week. 

From jewellery to logistics: Seven IPOs enter the market

Pranav Constructions, a Mumbai-based real estate developer, made a robust debut on September 15. The Rs 351 crore IPO was oversubscribed 121x and listed at a 33% premium to its issue price of Rs 124. The company plans to use the fresh proceeds to secure government approvals and purchase additional floor space index (FSI). The stock is currently trading 6.5% above its issue price.

Deepa Jewellers, a retail and wholesale jewellery trader, made a strong debut on September 8. The Rs 459.7 crore IPO was subscribed 42.6x and listed at a 24.9% premium to its issue price of Rs 177. The stock has since given up much of its listing gains and is currently trading 4.4% below its issue price.

Rays of Belief, an enterprise delivering plans for neurodevelopmental disorders under the brand Mom's Belief, made a flat debut on September 8. The Rs 125 crore IPO listed at par with its issue price of Rs 239. The company plans to use the proceeds to expand its physical centre network, technology infrastructure, and brand outreach. The stock is currently trading 5.9% below its issue price.

Listing gains fade across recent debuts

Four SME IPOs also entered the market last week.

Apana Logistics, a container transportation and logistics company, made a flat debut on September 15. The Rs 34.1 crore IPO received a modest overall subscription of 1.2x and listed at par with its issue price of Rs 60. The company plans to use the proceeds to purchase reach stackers and related equipment. The stock is currently trading 5% below its issue price.

Qualiance International, a technical apparel manufacturer, delivered a stellar debut on September 11. The Rs 45.1 crore IPO was heavily subscribed and listed at a 77.1% premium to its issue price of Rs 127. The company plans to use the capital to set up a new manufacturing facility at Tiruppur. The stock is currently trading 76.6% above its issue price.

Farm Peace, an integrated contract farming company, made a stellar debut on September 8. The Rs 32 crore IPO listed at a 90% premium to its issue price of Rs 59. The stock has faced some lower-circuit selling pressure since listing but is still trading 47.1% above its issue price.

FlyHi Maritime Travels, a maritime crew travel management company, had a weak debut on September 8. The Rs 52.6 crore IPO listed at a 20% discount to its issue price of Rs 102. The stock has weakened significantly since its debut and is currently trading 38% below its issue price.

Seventeen companies prepare for market debut this week

Three companies will make their market debuts on September 16, led by strong demand for Kanohar Electricals and Glass Wall Systems. Kanohar Electricals’ Rs 1,055.7 crore IPO was subscribed 90.6x, while Glass Wall Systems’ Rs 427.9 crore issue drew 81.7x bids. Kanohar plans to invest the fresh capital in machinery, facilities and solar panels, while Glass Wall Systems will use the proceeds to set up a new glass processing unit.

Prasol Chemicals will also list on September 16, after its Rs 500 crore IPO was subscribed 3.3x. The specialty chemicals manufacturer saw a relatively muted response compared with the other two issues listing the same day.

September 17 will be the busiest listing day, with six companies set to debut. Rentomojo and Karamtara Engineering attracted the strongest interest, with their IPOs subscribed 72.9x and 62.6x, respectively. 

QIBs drive demand across recent IPOs 

LCC Projects, Steamhouse and Asset Reconstruction Company also saw healthy demand. Their issues were subscribed 48.5x, 30.5x and 20.1x, respectively. LCC Projects plans to purchase equipment, while Steamhouse will use fresh capital to expand capacity. Asset Reconstruction Company’s Rs 733 crore IPO is entirely an offer for sale, meaning the company will not receive any proceeds from the issue.

Manipal Payment and Identity saw the weakest response among the September 17 listings, with its Rs 805 crore issue subscribed just 1.4x. The banking and smart-card manufacturer plans to use the fresh proceeds to purchase and install new equipment.

Veegaland Developers will list on September 18. Its Rs 210 crore IPO was subscribed 12.7x as of the final day. The real estate developer plans to use the proceeds for ongoing project execution and strategic land acquisitions.

LCC Projects attracts the highest number of bids

Seven SME issues are also in focus.

Three SME companies will list on September 17, with Amtech Esters drawing the strongest investor response. The specialty chemicals maker’s Rs 17.9 crore IPO was subscribed 24x, significantly ahead of the other two issues. Infrax Renewable’s Rs 40.9 crore IPO was subscribed 2x, while Vinod Texworld’s Rs 42.8 crore issue saw a modest 1.8x subscription.

Both Infrax Renewable and Vinod Texworld plan to use the capital for expansion. Infrax will invest in machinery for its solar EPC operations, while Vinod Texworld intends to expand its fabric processing facility.

Four more SME companies are scheduled to debut on September 18, although investor demand has remained relatively weak so far. Raksan Transformers attracted the strongest interest among them at 40.8x subscription as of the final day, while Maharaja Speedex stood at 27.4x. Om Galaxy and Panchatv Bharat saw weaker demand at 1.9x and 1.3x, respectively.

Manufacturing expansion is a common theme among the September 18 issues. Raksan Transformers plans to set up a new manufacturing facility in Haryana, while Om Galaxy will establish a new unit for its pipe fittings and industrial moulds business. Maharaja Speedex plans to invest in plant and machinery for its stainless steel bottles and drinkware operations.

NSE leads a diverse pipeline spanning eighteen IPOs

National Stock Exchange of India (NSE), which operates India's largest stock exchange by trading volumes, will open its long-awaited Rs 22,569 crore IPO for subscription from September 17 to September 21. The price band is set at Rs 1,700–1,785 per share. The issue is an offer for sale of 12.6 crore shares by existing shareholders. The stock will list on September 24.

Hero Motors, an automotive technology company, will launch its Rs 1,000 crore IPO from September 16 to September 18. The price band is set at Rs 79–84 per share. The company plans to use the proceeds to expand capacity at its Gautam Buddha Nagar facility and towards acquisitions. The stock will list on September 23.

SS Retail, a multi-brand retailer of mobile phones and consumer electronics, will open its Rs 500 crore IPO from September 16 to September 18 at a price band of Rs 403–424 per share. The company plans to use the fresh capital for setting up new stores. The stock will list on September 23.

A-One Steels India, a manufacturer of long and flat steel products, will launch its Rs 405 crore IPO from September 24 to September 28. The issue comprises a Rs 355 crore fresh issue and a Rs 50 crore offer for sale. The stock is scheduled to list on October 1.

Three smaller mainboard issues will also add to the pipeline. Manika Plastech's Rs 125.5 crore IPO, priced at Rs 40–43 per share, will close on September 16, with proceeds going towards machinery purchases. Jindal Supreme will open its Rs 124.9 crore issue from September 16 to September 18 at Rs 88–93 per share. Sonaselection India will open its Rs 141.6 crore IPO from September 17 to September 21 at Rs 94–99 per share. The fresh issue will fund machinery purchases at its existing manufacturing facility. 

Sonaselection leads revenue, A-One Steels tops profit 

Eleven SME IPOs are also lined up.

• Century Business Media will close its Rs 17.1 crore IPO on September 16. The company plans to use the proceeds to purchase media assets and pay security deposits for advertising rights at Patna Airport. The stock will list on September 21.
• Injecto Polymers will close its Rs 56.1 crore IPO on September 16. The company plans to use the proceeds to set up Phase IV at its existing manufacturing facility in West Bengal. The stock will list on September 21.
• Quanto Agroworld will launch its Rs 31 crore IPO from September 15 to September 17 at a fixed price of Rs 67 per share. The company plans to use the proceeds to set up a distillation plant and expand its farms. The stock will list on September 22.
• Shakti Polytarp will open its Rs 26.9 crore IPO from September 15 to September 17. The company plans to use the proceeds to purchase plant and machinery. The stock will list on September 22.
• Vama Wovenfab will launch its Rs 49.5 crore IPO from September 15 to September 17. The company plans to use the proceeds to construct a shed and purchase machinery. The stock will list on September 22.
• Kheria Autocomp will open its Rs 46.4 crore IPO from September 17 to September 21. The company plans to use the proceeds to fund a new manufacturing facility for plastic-moulded auto components at GIDC Sanand. The stock will list on September 24.
• SpectraA Technology Solutions will launch its Rs 42.5 crore IPO from September 17 to September 21. The company plans to use the proceeds for capex at its Jaipur manufacturing facility. The stock will list on September 24.
• Axiom Gas Engineering will open its Rs 49.8 crore IPO from September 18 to September 22. The company plans to use the proceeds to expand its Auto LPG dispensing infrastructure. The stock will list on September 25.
• Robokidz Eduventures will launch its Rs 31.1 crore IPO from September 21 to September 23. The stock will list on September 28.
• FX Multitech will open its Rs 40 crore IPO from September 21 to September 23. The company plans to use the fresh proceeds to purchase machinery for its subsidiary, Everest Chillers. The stock will list on September 28.
• S.K.Offset will launch its Rs 29.1 crore IPO from September 23 to September 25. The company plans to use the proceeds for purchasing plant and machinery at its Meerut facility. The stock will list on September 30.