Patel Retail stole the show with a near 20% premium, while the other three listings posted softer debuts.
A slew of listings flooded the primary indices on Tuesday, as initial public offering (IPO) momentum for Indian companies continued deep into August. Four companies made their debuts at 10:00 a.m. IST on the NSE and BSE, yielding mixed results.
At the time of writing, the Nifty index was trading 0.7% lower at 24,787.55, while the Sensex was down 0.8% at 80,981. Here’s how the market debutants fared:
Vikram Solar
The solar photovoltaic modules manufacturer made a modest market debut, listing at a 1.8% premium at ₹338 per share on the NSE. The stock opened at ₹340 per share on the BSE, reflecting a 2.41% premium to the issue price of ₹332.
Ahead of its market debut, shares of Vikram Solar were trading at an 11% premium in the grey market, an informal arena where IPO shares change hands before official listing.
The company’s ₹2,079-crore initial public offering, which was open for subscription between August 19 and August 21, witnessed robust investor interest and closed with an overall subscription of 54.63 times.
Qualified institutional buyers (QIBs) dominated the subscription with bids 142.79 times their quota, reflecting significant institutional confidence in the solar energy player. Non-institutional investors (NIIs) also showed strong participation, subscribing 50.90 times, while retail investors subscribed 7.65 times the shares reserved for them.
Patel Retail
Patel Retail made a strong debut on the stock exchanges, listing at a healthy premium of nearly 20% over its IPO price after witnessing robust investor interest. The IPO, which ran from August 19 to 21, was subscribed 95.70 times.
On the NSE, Patel Retail shares opened at ₹300 apiece, a 17.65% premium to the issue price of ₹255. On the BSE, the stock listed at ₹305, marking a 19.61% gain. The debut was largely in line with grey market expectations, which had anticipated listing gains of around 20%.
Patel Retail raised ₹243 crore through its IPO, comprising a fresh issue of ₹217 crore and an offer for sale of ₹26 crore. Of this, the company had already secured ₹43 crore from anchor investors prior to the issue opening. The proceeds will be directed towards debt repayment, working capital requirements, and general corporate purposes.
Investor demand was particularly strong among institutions, with qualified institutional buyers (QIBs) subscribing 272 times their quota. Non-institutional investors (NIIs) subscribed nearly 109 times, while retail subscription stood at 42 times.
Gem Aromatics
A specialty ingredients manufacturer, Gem Aromatics, made a subdued debut on Dalal Street on Tuesday. The stock was listed at ₹333.50 apiece on the NSE, reflecting a modest 2.6% premium over its issue price of ₹325, while on the BSE, it opened flat at the IPO price.
The lukewarm listing surprised many market participants, given that shares of Gem Aromatics were trading at a 10% premium in the grey market ahead of debut.
The company had already raised over ₹135 crore from anchor investors, with participation from marquee names such as Citigroup Global, Societe Generale, Goldman Sachs, Nippon India Mutual Fund, SageOne, Nuvama, and Niveshaay Sambhav Fund.
The ₹451-crore IPO comprised a fresh issue of shares worth up to ₹175 crore and an offer-for-sale (OFS) of up to 85 lakh shares at ₹276.25 crore.
Investor interest during the three-day bidding window was strong, with the retail portion subscribed 10.49 times, QIBs (excluding anchor investors) subscribed 53.76 times, and NIIs subscribed 45.96 times their allotted quota.
Shreeji Shipping Global
The company listed at an 8% premium on the BSE, over the issue price of ₹252. On the NSE, the stock opened at ₹270, reflecting a 7.14% premium.
The IPO had witnessed strong demand, being subscribed to more than 58 times during the three-day bidding window from August 19 to 21. The issue was priced in the range of ₹240 – ₹252 per share, with investors allowed to bid for a minimum of 58 shares per lot. Unlike many recent offerings, the IPO was entirely a fresh issue of 1.63 crore equity shares, with no offer-for-sale component.
At the upper end of the price band, Shreeji Shipping Global raised ₹411 crore. Of this, ₹251.2 crore has been earmarked for the acquisition of dry bulk carriers in the supramax category in the secondary market, while ₹23 crore will be allocated towards debt repayment.
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