In total 10 mainboard IPOs in November, 8 lists with premium; Tata Tech IPO tops the list; check details

The primary market stole the spotlight in November 2023, with a lineup of IPOs capturing investor interest. Ten mainboard IPOs were listed in November, eight of which were listed with premiums. The most-awaited IPO of the year, the Tata Technologies IPO, topped the list with a 140% gain. It was followed by the Indian Renewable Energy Development Agency IPO (IREDA IPO), which saw an 87.5% listing gain, and the Gandhar Oil Refinery IPO, 76.3% listing gain, trendlyne data showed. On the flip side, the Fedbank Financial Services IPO was listed at a discount of 1.4%, while the Protean eGov Technologies IPO made a muted debut listing at the same price as its issue price.

Following the ESAF Small Finance Bank IPO (73.2x) in terms of subscription status, the other three top IPOs were Tata Tech IPO (69.4x), Gandhar Oil IPO (64.1x), and ASK Automotive IPO (51.1x).

“Given the positive secondary market environment and ample liquidity, the primary market in the month of November 2023 was busy. We saw 10 IPO listings, and almost all traded in the positive zone, from as low as 3% to as high as 162%. The year 2023 has been very favourable for IPOs as market conditions are optimistic and have helped companies raise capital,” said Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities.

Also Read: Tata Tech closes 165% higher on market debut: A look at 5 stocks that beat the Tata Group stock at listing gains

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In November 2023, ten Indian firms raised about ₹13,000 crore through main board IPOs. Last week, the Street focused on five mainboard IPOs: Tata Technologies Ltd, Indian Renewable Energy Development Agency Ltd, Gandhar Oil Refinery (India) Ltd, Fedbank Financial Services Ltd, and Flair Writing Industries Ltd.

Investors on D-Street placed bids totalling ₹2.59 lakh crore when all five of these major players opened for subscription. The five mainboard IPOs that opened to raise ₹7,377 crore made the week ending November 24 one of the busiest for the primary market in recent years, according to analysts.

Also Read: What is grey market and GMP that led to Tata Tech IPO opening at 140%

According to Vinit Bolinjkar, Head of Research, Ventura Securities Ltd, the IPO market had a favourable month, with 5 out of 10 IPOs showing returns surpassing 20% on listing day, and notably, 2 of them achieved remarkable gains exceeding 100%. 

Investors continued to show a preference for growth stocks, characterised by companies with high potential for future earnings growth. This demand for newly listed shares in IPOs reflects the ongoing interest in investing in promising businesses. 

Also Read: Tata Technologies leads the IPO bumper listing, Gandhar Oil, FedFina shares follow the suit

“In November 2023, certain sectors, especially technology and consumer discretionary, exhibited robust performance, benefiting from positive sentiment within these industries. The overall market conditions during the month were supportive of IPO activity, as major stock indices experienced gains, creating an encouraging environment for new listings,” added Bolinjkar.

Going Forward

December is going to start with the Flair Writing Industries listing. Flair Writing IPO subscription status was 46.68 times on day 3. Flair IPO's retail investors portion was subscribed 13.01 times, NII portion was subscribed 33.37 times, and Qualified Institutional Buyers (QIB) portion is booked 115.60 times, at as per data available on BSE.

Flair Writing IPO allotment was finalised yesterday, November 29. Flair Writing IPO GMP today or grey market premium is +130, which means shares are trading at their premium of ₹130 in the grey market, according to investorgain.com

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Flair Writing Industries Limited shares was indicated at ₹434 apiece, which is 42.76% higher than the IPO price of ₹304.  Based on the last 15 sessions of grey market activity, today IPO GMP points upward and expects a strong listing.

Going forward, Tapse continues to believe this trend in the primary market will trend the same for the rest of the second half of FY24. Investors may also see a huge rush in the IPO space, looking at the success of IREDA and Tata Tech.

"This is the phase where emerging companies and promoters look to tap investor sentiments given the secondary market environment. Companies like DOMS, Inox India Ltd, Apeejay Surrendra Park Hotels Ltd, India Shelter Finance Corporation Ltd, Mukka Proteins, and Happy Forgings Ltd would be on the cards for the next round of IPO in the coming few weeks,” added Tapse.

Also Read: Tata Technologies Share Price Live Updates: Stock ends at ₹1,327, over 165% premium to IPO price

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