In the dynamic world of Indian stock markets, this week is marked by the debut of seven promising companies, bringing exciting new stocks to the market. The primary market seems to be taking a breather from new IPO launches, but the action is far from over as we prepare for the debut of seven promising companies on the stock market. This week in the world of Initial Public Offerings (IPOs), we witness 14 IPO closings spanning various segments.
Primary Market Action: Key Highlights
- 14 IPOs are set to conclude this week in various segments of the primary market.
- The primary market is taking a break from new IPO launches, but there is excitement with the debut of seven promising companies.
- JSW Infrastructure and Vaibhav Jewellers are the mainboard IPOs in focus, debuting on October 3.
- Experts predict significant listing gains for JSW Infrastructure, India’s second-largest commercial port operator.
- JSW Infrastructure follows the T+2 timeline for listing, a unique feature that sets it apart.
- Valiant Laboratories and Plaza Wires are closing their IPOs this week, with notable oversubscription rates.
In the mainboard segment, all eyes are on JSW Infrastructure and Vaibhav Jewellers, slated to make their market entrance on October 3. Experts predict significant listing gains for the new stocks in India, i.e. JSW Infrastructure, the country’s second-largest commercial port operator, while Vaibhav Jewellers might experience a more subdued debut.
JSW Infrastructure, the second-largest commercial port operator in India, is poised to make its debut on the stock market on October 3. Market experts anticipate that the company’s stock will open with a strong surge, potentially ranging between 15-20 percent. This optimistic outlook is based on several factors, including robust subscription numbers, a commendable performance in recent financial years, and solid backing from a diversified customer base.
What sets JSW Infrastructure apart is its decision to follow the T+2 timeline for listing. This means that the new stock in the market will start trading just two working days after the IPO’s closure, following the completion of the allotment, share transfer, and refund process.
It’s noteworthy that, as of September 1, companies launching IPOs have the option to voluntarily opt for the new T+3 timeline, which will become mandatory for all IPOs starting from December 1. JSW Infrastructure will be the second company, following RR Kabel, to be listed on the T+2 timeline.
During the subscription period from September 25 to 27, the Rs 2,800-crore public issue of the JSW Group witnessed remarkable interest, with an oversubscription rate of 37.37 times.
This overwhelming response was primarily driven by qualified institutional investors, who subscribed a staggering 57.09 times their allocated quota. High net-worth individuals also showed substantial interest, subscribing 15.99 times, while retail investors secured their portion with a subscription rate of 10.32 times.
Vaibhav Jewellers, an Andhra Pradesh-based jewellery retail chain, is gearing up to join the stock market alongside JSW Infrastructure on October 3. Unlike the heightened expectations for JSW Infrastructure, Vaibhav Jewellers is anticipated to have a more muted listing.
IPO Closings this Week
Closing this week in the mainboard segment, Valiant Laboratories, a pharmaceutical company, is set to conclude its Rs 152-crore public offering on October 3. Simultaneously, the IPO of Plaza Wires, a Delhi-based wire manufacturer with a value of Rs 71 crore, will come to an end on October 5. Notably, Valiant Labs has seen a subscription rate of 2.17 times, while Plaza Wires garnered significant interest with an oversubscription rate of 4.68 times on the first day of bidding, which commenced on September 29.
While our primary focus revolves around mainboard IPOs, it’s worth noting that the SME (Small and Medium-sized Enterprises) front also has exciting developments. Canarys Automations, an IT solutions company, and One-click Logistics India, a logistics services firm, are set to conclude their public issues on October 3.
In summary, this week’s IPO market scenario is characterised by the conclusion of several IPOs and the eager anticipation of new listings. While SMEs have their share of promising companies, the mainboard segment remains dynamic, with JSW Infrastructure and Vaibhav Jewellers taking the spotlight.
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.