Even because the market week ended Friday was a blockbuster for the IPO market, an skilled stated the Indian market is retaining its optimistic trajectory and the momentum is prone to proceed going ahead. During the week, a complete subscription quantity of Rs 3.5 lakh crore and greater than 1.5 crore purposes getting processed in T+3 is a brand new world file.
Mahavir Lunawat, managing director of Pantomath Capital Advisors, stated, “The Indian market is retaining its positive trajectory. The primary market stole the spotlight in the week ending December 1, 2023, with a line-up of IPOs capturing investor interest. Tata Technologies IPO, as expected by the Street, witnessed robust demand from all sections of investors.”
A complete of 5 IPOs had been listed this week — Tata Technologies IPO, Gandhar Oil Refinery IPO, Fedbank Financial Services IPO, Flair Writing Industries IPO, and Rockingdeals Circular Economy SME IPO.
All IPOs, besides Fedbank Financial Services IPO, gave overwhelming returns on the itemizing day. Tata Technologies posted as excessive as 140 per cent itemizing features as in comparison with its IPO itemizing value, Gandhar Oil Refinery posts 75 per cent revenue, and Rockingdeals Circular SME IPO information 115 per cent achieve. Flair Writinf Industries recorded 65 per cent itemizing features.
Though all different IPOs obtained totally subscribed on the primary day, Fedbank Financial Services, which initially garnered a muted response, witnessed full subscription on the third day.
“Total subscription amount of Rs 3.5 lakh crore and more than 1.5 crore applications getting processed in T+3 is a new global record. This must be attributed to the efficient process laid out by the market regulator SEBI and able handling by the ecosystem participants such as investment bankers and registrar,” Lunawat stated.
He stated the surge in IPO exercise is attributed to the eagerness of corporations to faucet into capital markets earlier than or after the Lok Sabha elections, coupled with sturdy financial exercise and optimistic sentiments from each home and international buyers in the direction of India.
“This momentum is likely to continue well into 2024,” Lunawat stated.
Apart from the first market, the week was additionally nice for the secondary market. On Friday, a stronger-than-expected GDP development in Q2, coupled with growth in manufacturing PMI for November gave a shot within the arm to market bulls. The S&P BSE Sensex soared 493 factors, or 0.74 per cent, Friday to settle at 67,481 ranges. The Nifty50, alternatively, closed at a file closing peak of 20,268, up 135 factors or 0.67 per cent. It scaled a brand new peak of 20,291.55 within the intraday commerce.
