Next week, Tata Capital and L’s back to back IPO is coming, both of whom are more than 27 thousand crore rupees.
Next week, there will be a lot of movement in the primary market of India. Tata Capital and LG Electronics are planning to bring large IPOs. The total size of these IPOs is being seen more than 27 thousand crore rupees. This will be the first time that two IPOs of such a large size will open together. Earlier, how did Paytm and LIC’s IPO have seen the fate, they all know.
This is the reason why experts are questioning whether there is so much potential in the falling stock market that both of them can digest IPOs. Historically large IPOs have given different returns to investors. Some experts believe that there is no shortage of liquidity. The coming week will decide the demand of investors for these new listings.
If you look at some of the last few IPO listing, then the record of returning of mega issue of more than Rs 10,000 crore to investors has been very disappointing. In July, HDB Financial’s IPO of Rs 12,500 crore rose 14 per cent on the day of listing, but now it is trading up just 4 per cent above its issue price. Last year, an IPO of Rs 10,000 crore of NTPC Green Energy is still below its Rs 108 issue price.
Paytm is seen trading below 50 percent of its issue price. At the same time, the issue price of LIC was between 902 and 949 rupees, which is currently around 900 rupees. While the company’s issue size was 21 thousand crores. Let us also tell you whether both IPOs will be able to digest the stock market or not.
Two mega IPOs are coming next
The stock market will have to face dual examination next week as Tata Capital and LG Electronics are bringing $ billions of IPOs one after the other, while Sensex and Nifty are dull after a one -year stable returns. On Monday, there is a danger of ending cash from the market showing signs of lethargy before two big IPOs worth Rs 15,500 crore by Tata Capital and one day later by LG.
Talking about the total size of these two IPOs, it is more than 27,000 crores. Which is rarely seen in the primary market of India. While the upcoming IPO has created a stir, it has also raised the question whether the dull secondary market will be able to withstand such a huge supply without any instability.
That’s why questions are arising
If you look at the pages of the last few years, then it seems a bit meaningless to expect returns from such a big IPO. The record of giving returns to investors of more than Rs 10,000 crore has been very disappointing. In July, HDB Financial’s Rs 12,500 crore IPO was increased by 14 per cent on the day of listing, but is now trading up just 4 per cent above its issue price.
Last year, NTPC Green Energy’s IPO size was 10,000 crores, which is trading below its 108 rupee issue price. If we talk about Paytm, its size was more than 18 thousand crores, and the issue price was above 2000 rupees, which is currently seen trading below 50 percent. At the same time, who can forget the IPO of LIC, whose size of the IPO was more than Rs 21 thousand crore and the issue price was Rs 949, at present, it is seen hovering around Rs 900.
On the other hand, there were some mega IPOs who have tried to break this confusion. Which includes IPOs like Hyundai Motor and Swigi. The IPO size of Hyundai Motor was Rs 27,870.16 crore and the issue price was Rs 1960, which is currently trading beyond Rs 2500. On the other hand, Swiggy’s IPO size was Rs 11,327.43 and the issue price was Rs 390, which is currently at Rs 415.85, which had gone beyond Rs 600.
What do you say?
Sunny Aggarwal of SBI Securities said in the ET report that many companies are listing, and offers are coming for them, but most companies are very difficult to find the price because most of the issue has been paid full price and very low price is left for new investors. The crowd of IPO has raised the question whether the primary market is harming the secondary market, but the market giants reject this concern.
Pranab Haldia, MD of Prime Database Group, said in a media report that I do not agree with the principle that the primary market absorbs liquidity from the secondary market and has given enough evidence of the last 5 years after Kovid, when the number of IPOs on Dalal Street has increased a huge increase and the market has also been quadrupled. U
He further said that even tomorrow, if you get a big IPO of Rs 20,000-30,000 crore, then the market with good valuation will be easily contained. By the way, some experts say that due to the introduction of two IPOs next week, there has been a stir in the stock market. The question is whether investors will be able to raise Rs 27,100 crore in a week or not. In the festive season, it will be the final examination of the enthusiasm of the primary market of India.