The IPO action is heating up despite the muted equity market conditions. Starting from December 30, 2024, market participants will witness an active primary market with four IPOs opening for public subscription and six companies scheduled for listing on the bourses. Let’s dive into the details of what’s coming next week and analyze why 2024 has been a record-breaking year for the IPO market.
Highlights of the Upcoming Week in IPOs
1. Indo Farm Equipment IPO
- Opening Date: December 31, 2024
- Closing Date: January 2, 2025
- Offer Details:
- Total size: Rs 260 crore
- Fresh issue: Rs 185 crore
- Offer-for-sale: Rs 75 crore
- Price Band: Rs 204-215 per share
Indo Farm Equipment is the sole mainboard IPO next week. This agricultural equipment manufacturer is set to attract investor interest with its robust financials and strategic growth plans.
2. Dry Fruits & Spices Manufacturer IPO
- Opening Date: January 1, 2025
- Closing Date: January 3, 2025
- Offer Details:
- Total size: Rs 25.1 crore
- Price Band: Rs 51-52 per share
Marking the start of the new year, this IPO is expected to bring a unique opportunity for investors to tap into the growing dry fruits and spices market.
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3. Fabtech Technologies Cleanrooms IPO
- Opening Date: January 3, 2025
- Closing Date: January 7, 2025
- Offer Details:
- Total size: 32.64 lakh shares
- Price Band: To be announced
Fabtech Technologies specializes in pre-engineered and pre-fabricated modular panels, catering to the pharmaceutical and cleanroom industries. Its IPO will likely draw interest from niche investors.
IPOs Closing Next Week
- Anya Polytech & Fertilizers IPO:
- Closing Date: December 30, 2024
- Subscription Status: 26.22 times
- Offer Size: Rs 45 crore
- Citichem India IPO:
- Closing Date: December 31, 2024
- Subscription Status: 25.89 times
- Offer Size: Rs 12.6 crore
Companies Listing Next Week
A total of six companies will debut on the bourses next week:
- December 30, 2024:
- Ventive Hospitality
- Senores Pharmaceuticals
- Carraro India
- December 31, 2024:
- Unimech Aerospace and Manufacturing
- January 2, 2025:
- Anya Polytech & Fertilizers (NSE Emerge)
- January 3, 2025:
- Citichem India (BSE SME)
Grey Market Performance
The grey market, an informal trading platform, provides a glimpse into potential listing gains:
- Unimech Aerospace: Trading at over 80% premium
- Senores Pharmaceuticals: Trading at over 60% premium
- Ventive Hospitality: Trading at more than 10% premium
- Carraro India: No significant premium observed
2024: A Record-Breaking Year for IPOs
Key Achievements:
- Total IPOs: 335 companies
- 93 from the mainboard segment
- Funds Raised: Nearly Rs 1.72 lakh crore
- Highest-ever annual fundraising
- Sectoral Trends:
- Power, technology, manufacturing, and services sectors dominated the IPO landscape.
Reasons for Success:
- Strong Investor Sentiment: Despite market volatility, investors showed confidence in India’s economic growth.
- SEBI Approvals: Many companies received regulatory clearances, boosting IPO activity.
- Diverse Opportunities: Companies from varied industries tapped into the primary market.
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Outlook for 2025
Experts predict that the IPO momentum will continue in 2025. Several companies across sectors have already secured SEBI approvals, indicating a strong pipeline of IPOs. Power, technology, manufacturing, and services will likely remain key contributors to the IPO market.
Why Should Investors Watch IPOs?
Benefits of Investing in IPOs:
- Early Entry: Opportunity to invest in companies during their growth phase.
- Potential Gains: IPOs often provide listing gains, especially for high-demand issues.
- Diversification: Access to companies from various sectors.
Risks to Consider:
- Market Volatility: IPO performance can be affected by broader market conditions.
- Grey Market Premiums: While indicative, they do not guarantee listing performance.
How to Approach IPO Investing
- Research: Study the company’s fundamentals, industry, and growth potential.
- Evaluate Price Band: Assess if the price band aligns with the company’s valuation.
- Review Subscription Data: Higher subscription levels often indicate strong demand.
- Consider Financial Goals: Align IPO investments with your long-term financial objectives.
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Conclusion
The primary market is buzzing with activity as we enter the final week of 2024 and begin 2025. With multiple IPOs and listings scheduled, investors have ample opportunities to diversify their portfolios and capitalise on potential gains. While IPO investing offers attractive benefits, it’s essential to conduct thorough research and consider associated risks. As the IPO action unfolds, all eyes are set on how these companies perform in the coming days.
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