MUMBAI : Companies listing their shares on the stock markets are basking in the frenzied attention of individual investors, a trend expected to continue into next year and make up for the relatively tepid enthusiasm of institutional investors.
The initial public offerings of Happy Forgings, RBZ Jewellers, and Credo Brands Marketing were oversubscribed on Day 1 on Tuesday, while those of Muthoot Microfin, Suraj Estate Developers and Motisons Jewellers continued to attract strong retail interest on their second day.
The retail portion of RBZ Jewellers’ IPO was oversubscribed by 4.5 times, followed by Mufti Jeans owner Credo Brands (3.2 times) and Happy Forgings (3 times). Motisons Jewellers’ IPO was oversubscribed by a staggering 64.3 times by retail investors on day two, followed by Muthoot Microfin (4 times) and Suraj Estate (3.8 times).
Institutional investors such as qualified institutional buyers remained largely on the sidelines for Happy Forgings, RBZ Jewellers and Credo Brands Marketing, with less than 10% participation. Motisons Jewellers, Muthoot Microfin and Suraj Estate Developers, however, attracted QIB interest with participation rates of 66%, 46%, and 12%, respectively.
Kranthi Bathini, director of equity strategy at WealthMills Securities Pvt Ltd, attributed the overwhelming retail interest to a “strong retail presence in the primary market, fuelled by ample liquidity and hassle-free digital access.”
“Recent IPOs like Tata Technologies and IREDA’s oversubscription and stellar post-listing gains have ignited a retail mania for quick profits,” he said.
“While this enthusiasm might persist in 2024 if markets remain positive, caution is crucial. Investors should prioritise understanding the business fundamentals of companies before applying for IPOs, especially those seeking long-term value.”
Overall, Happy Forgings, RBZ Jewellers and Credo Brands Marketing registered total oversubscription of 2.3 times, 2.2 times, and 2 times, respectively.
Motisons Jewellers raked in an overall oversubscription rate of 51.3 times on the second day of its public share offering, followed by Muthoot Microfin and Suraj Estate Developers at 2.8 times and 2.4 times, respectively.
Non-institutional participants also played a significant role in the oversubscriptions, with RBZ Jewellers, Happy Forgings and Credo Brands Marketing registering ratios of 71% times, 3.6 times, and 2 times, respectively. Motisons Jewellers, Muthoot Microfin and Suraj Estate Developers saw oversubscription ratios of 69.59 times, 3 times, and 2 times.
Shares of Happy Forgings, Muthoot Microfin, Suraj Estate and Motisons Jewellers were trading at a premium in the grey market, according to market observers. Happy Forging was commanding a premium of Rs430, while Muthoot Microfin, Suraj Estate, and Motisons Jewellers were trading at premiums of Rs42, Rs70, and Rs101, respectively.
Happy Forgings’ IPO includes a fresh issue of equity shares worth Rs400 crore and an offer for sale of 7.1 million shares. RBZ Jewellers’ IPO comprises a fresh issue of equity shares worth Rs100 crore. Credo Brands’ IPO is an OFS of up to 19.6 million shares.
Reference :
Source link
Disclaimer: Stuffsearth Website & it’s authors assumes no responsibility or liability for any errors or omissions in the content of this site. The information contained in this site is provided on an “as is” basis and 100% using the AI Model with no guarantees of completeness, accuracy, usefulness or timeliness. Please do your own research before engaging yourself in our content.
Note: This post has been created by using AI Model build by AlienX
