The IPO market saw improved participation from foreign investors too as they pumped in nearly Rs. 34,997.73 crore as on March 28, according to Sebi data. FII net inflows in primary market for the month of October 2015 stood at Rs. 21,057.50 crore.
With only three trading sessions remaining in the financial year 2015-16, the primary market is likely to end on a positive note as more than half of the initial public offerings (IPOs) on board have offered impressive returns. As many as 22 firms have raised over Rs. 16,000 crore via IPOs in FY16, in a best-ever performance since last 5 years.
Owing to volatile market sentiments on Dalal Street in response to the global economic turmoil, the benchmark Sensex and Nifty crashed by over 10% in FY16 as on March 29. However, this has not dampened the positive sentiment in the primary market as 12 out of 22 IPOs offer higher returns to the investor.
The IPO market saw improved participation from foreign investors too as they pumped in nearly Rs. 34,997.73 crore as on March 28, according to Sebi data. FII net inflows in primary market for the month of October 2015 stood at Rs. 21,057.50 crore.
Higher returns matching overwhelming response
FY16 saw almost all IPOs subscribed fully, attributed to positive undertone of the secondary market on the back of government measures and constant inflows from mutual funds. As against fluctuating investments in secondary markets, foreign investors have shown immense enthusiasm in the primary markets. Following is the snapshot of how IPOs fared in FY16 so far:
Robust pipeline
The post budget rally that saw BSE Sensex surging over 8% till March 29 has only accelerated the activities in the IPO markets. Companies like Healthcare Global, Infibeam, Bharat Wire Ropes among other announced their IPOs. Meanwhile, Equitas Holdings will hit the primary market with a Rs. 2,200 crore on April 5. Companies like L&T Infotech, Mahanagar Gas, Ujjivan Financial Services, Equitas Holding, Nuziveedu Seeds, Parag Milk, Thyrocare Technologies have already received a go-ahead from Sebi and are expected to hit the market in April and May. The stock market regulator has given its nod to as many as 25 companies, which are expected to mop up Rs. 12,400 crore.
Merchant bankers are of the view that post the budget rally; companies are in a rush to reap the benefits of the positive undertone. If RBI slashes benchmark interest rates in its monetary policy, it will boost the overall market sentiment. In all probability, the golden run of IPOs will continue in FY17.
Owing to volatile market sentiments on Dalal Street in response to the global economic turmoil, the benchmark Sensex and Nifty crashed by over 10% in FY16 as on March 29. However, this has not dampened the positive sentiment in the primary market as 12 out of 22 IPOs offer higher returns to the investor.
The IPO market saw improved participation from foreign investors too as they pumped in nearly Rs. 34,997.73 crore as on March 28, according to Sebi data. FII net inflows in primary market for the month of October 2015 stood at Rs. 21,057.50 crore.
Higher returns matching overwhelming response
FY16 saw almost all IPOs subscribed fully, attributed to positive undertone of the secondary market on the back of government measures and constant inflows from mutual funds. As against fluctuating investments in secondary markets, foreign investors have shown immense enthusiasm in the primary markets. Following is the snapshot of how IPOs fared in FY16 so far:
| Performance of IPOs in FY16 so far | |||
| Company | Issue price | CMP | % |
| Shree Pushkar | 65 | 120.1 | 84.76 |
| VRL Logistics | 205 | 367.2 | 79.12 |
| Dr Lal Path | 550 | 926.5 | 68.45 |
| Syngene Int | 250 | 377.75 | 51.10 |
| Manpasand | 320 | 441 | 37.81 |
| PNC Infratech | 378 | 492.5 | 30.29 |
| Alkem Lab | 1050 | 1408.5 | 34.14 |
| SH Kelkar | 180 | 227.6 | 26.44 |
| InterGlobe | 765 | 889.25 | 16.24 |
| Narayan Hrudayalaya | 250 | 284.5 | 13.80 |
| Navkar Corp | 155 | 178.5 | 15.16 |
| TeamLease | 850 | 885.75 | 4.20 |
| Prabhat Dairy | 115 | 106.7 | -7.21 |
| Sadbhav Infra | 103 | 92.85 | -9.85 |
| Power Mech | 640 | 551.25 | -13.86 |
| Pennar Engineered | 178 | 141.3 | -20.61 |
| Inox Wind | 325 | 251.95 | -22.47 |
| Coffee Day | 328 | 222.6 | -32.13 |
| Quick Heal | 321 | 213.3 | -33.55 |
| UFO Moviez | 625 | 416.7 | -33.32 |
| MEP Infra | 63 | 36.25 | -42.46 |
| Adlabs Ent | 180 | 85.65 | -52.41 |
| Last Update March 29 | |||
Robust pipeline
The post budget rally that saw BSE Sensex surging over 8% till March 29 has only accelerated the activities in the IPO markets. Companies like Healthcare Global, Infibeam, Bharat Wire Ropes among other announced their IPOs. Meanwhile, Equitas Holdings will hit the primary market with a Rs. 2,200 crore on April 5. Companies like L&T Infotech, Mahanagar Gas, Ujjivan Financial Services, Equitas Holding, Nuziveedu Seeds, Parag Milk, Thyrocare Technologies have already received a go-ahead from Sebi and are expected to hit the market in April and May. The stock market regulator has given its nod to as many as 25 companies, which are expected to mop up Rs. 12,400 crore.
| IPO pipeline: estimated funds to be raise | |
| Company | Issue size (Rs. Cr) |
| Equitas Holdings | 2200 |
| L&T Infotech | 2000 |
| AGS Transact | 1350 |
| Mahanagar Gas | 1200 |
| Ujjivan Financial | 800 |
| Nuziveedu Seeds | 700 |
| Paranjape Schemes | 600 |
| Matrix Cellular | 500 |
| GVR Infra | 500 |
| Dilip Buildcon | 500 |
| Martimony.com | 450 |
| Catholic Syrian Bank | 400 |
| Parag Milk Foods | 400 |
| VLCC Healthcare | 400 |
| Thyrocare Tech | 400 |
| Sandhar Tech | 375 |
Merchant bankers are of the view that post the budget rally; companies are in a rush to reap the benefits of the positive undertone. If RBI slashes benchmark interest rates in its monetary policy, it will boost the overall market sentiment. In all probability, the golden run of IPOs will continue in FY17.
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