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The Indian primary market continues to show significant activity, despite muted conditions in the equity market. The upcoming week, beginning December 30th, will witness a flurry of activity with four initial public offerings (IPOs) opening for public subscription and six companies slated for listing on the stock exchanges. This robust activity builds on a remarkably successful year, with 335 companies launching public issues in 2024, raising a record-breaking nearly Rs 1.72 lakh crore. This figure represents the highest annual total ever, exceeding previous records for both mainboard and SME (small and medium enterprise) segments. This positive trend is expected to persist into 2025, fueled by numerous companies already securing SEBI (Securities and Exchange Board of India) approval for their IPO plans and actively seeking primary market funding across various sectors, including power, technology, manufacturing, and services. This sustained interest suggests a continued confidence in the Indian economy and the potential for growth within various sectors. The sheer volume of companies entering the market underscores a healthy pipeline of investment opportunities, although investors should proceed with caution and thorough due diligence before committing capital.
The mainboard segment will see the launch of Indo Farm Equipment's IPO on December 31st. This IPO aims to raise Rs 260 crore through a combination of a fresh issue of Rs 185 crore and an offer-for-sale of approximately Rs 75 crore worth of shares. The price band for this offering, which closes on January 2nd, has been set at Rs 204-215 per share. This relatively large IPO from a known player in the agricultural equipment sector reflects the ongoing demand for investment opportunities in established industries. The success of this IPO, measured by subscription levels and market reaction following listing, will be a key indicator of investor sentiment and the overall health of the market. The pricing strategy employed by Indo Farm Equipment will also be closely scrutinized, as it could set a benchmark for similar offerings in the agricultural equipment space and potentially influence the pricing of future IPOs.
The SME segment will see considerable activity with three IPOs scheduled for launch. Technichem Organics, a company in the chemical sector, will initiate its Rs 25.25-crore IPO on December 31st, setting a price band of Rs 52-55 per share. Leo Dry Fruits and Spices Trading will follow on January 1st with its Rs 25.1-crore maiden public offering, closing on January 3rd, with a price band of Rs 51-52 per share. This offering represents a unique opportunity for investors interested in the food and beverage industry. Finally, Fabtech Technologies Cleanrooms, a manufacturer of pre-engineered and pre-fabricated modular panels, will open its IPO on January 3rd, closing on January 7th. The price band for this IPO, however, remains to be announced, adding an element of uncertainty to this particular offering. The SME IPOs, though smaller in scale than their mainboard counterparts, provide opportunities for investors seeking exposure to smaller companies with high growth potential, but also carry greater risk due to their size and relative lack of market history.
In addition to the upcoming IPOs, several other initial share sales are nearing completion. Anya Polytech & Fertilizers, with a Rs 45-crore offering already oversubscribed 26.22 times, will close on December 30th. Citichem India's Rs 12.6-crore public issue, also significantly oversubscribed at 25.89 times, closes on December 31st. The high subscription levels for these offerings further underscore the considerable investor interest in the primary market and a general positive sentiment towards investing in Indian companies. The strong performance of these nearly completed offerings could positively influence investor decisions on the upcoming IPOs, adding momentum to the ongoing wave of IPO activity. However, it is crucial for prospective investors to avoid making investment decisions solely based on past performance, and they should conduct thorough research before making any financial commitments.
The coming week also promises significant listing activity, with six companies scheduled to make their market debuts. Three of these, Ventive Hospitality, Senores Pharmaceuticals, and Carraro India, will list on December 30th on the mainboard. Unimech Aerospace and Manufacturing will list on December 31st. The grey market, which often provides an early indication of market sentiment, is showing considerable enthusiasm for some of these listings. Unimech Aerospace shares are trading at over 80 percent premium to their upper price band, Senores Pharmaceuticals at over 60 percent, and Ventive Hospitality over 10 percent. However, Carraro India does not seem to be attracting any premium. These grey market premiums highlight investor expectations, but it is crucial to remember that grey market prices are speculative and not indicative of the actual listing price. Investors should evaluate the fundamentals of each company before making investment decisions.
In the mainboard segment, Anya Polytech & Fertilizers is set to debut on the NSE Emerge on January 2nd, and Citichem India on the BSE SME on January 3rd. These listings are indicative of the broader diversification of the Indian capital markets and provide further opportunities for investors seeking diverse investment choices. The diversity in sectors and company sizes reflects the growing maturity of the Indian IPO market and the increasing confidence of both companies seeking capital and investors looking for promising opportunities. The sustained activity in the primary market reinforces the notion that India's economy remains attractive to both domestic and international investors, demonstrating significant confidence in the potential for continued growth across a wide range of sectors.
Source: IPO Action: Four public issues with six listings lined up next week