Three companies to launch initial public offerings (IPO) for value ₹Rs 3,160 crore next week, hoping to benefit from a stock market awash with liquidity and a sharp rise in new retail investors.
Indian stocks have recovered more than 50% from their lows in March, when the government imposed one of the strictest closures in the world to contain Covid-19. This rally has ended a long streak of dry primary markets this year with three major IPOs since the outbreak with strong underwriting.
“There is an avalanche of IPOs from midsize companies to take advantage of good market conditions and a significant increase in retail share. More importantly, there is a willingness to pay a higher valuation to companies with differentiated business models and a renowned management team, “said Gaurav Dua, Senior Vice President and Head of Capital Market Strategy and Investments, Sharekhan by BNP Paribas.
Two IPOs will open for subscription on Monday: Computer Age Management Services (CAMS) and Chemcon Specialty Chemicals Ltd, followed by Angel Broking on Tuesday.
The CAMS IPO will be open for subscription from September 21-23 at a price band of ₹1,229-1,230 per share. Current shareholder NSE Investments Ltd seeks to sell its entire stake through the offering, which will bring it ₹2,242 crore at the upper end of the band.
With a price band of ₹338-340 per share, the sale of Chemcon shares will be open for subscription from September 21-23. The specialty chemicals company aims to increase ₹318 crore at the upper end of the band.
Taking advantage of the strong wave of retail investors, Angel Broking will seek to raise as much as ₹Rs 600 crore through its three-day IPO which will close on September 24. The price band has been set at ₹305-306 each.
The huge price gains seen across all stock market quotes in recent months have attracted investors, causing IPOs to go high.
Happiest Minds Technologies Ltd shares more than doubled on its debut on Thursday. The stock soared 138% over its issue price on the first day. the ₹The 702 crore IPO was signed 151 times last week. the ₹Route Mobile’s 600 million rupee issue, which was subscribed 73 times, will be released on Monday.
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