At least five of the public offerings set to launch next month aim to raise a cumulative amount of Rs 6,595 crore, reported Business Standard. South-based diagnostic chain Vijaya Diagnostic Centre is one of the IPOs to watch out for. The Rs 1,895 crore IPO will open for subscription on September 1.
Ami Organics is another company that plans to launch its Rs 600-crore issue next month. The other companies that are expected to launch their public offerings include Arohan Financial Services, Penna Cement, Shri Bajrang Power and Ispat Limited. In fact, Panna Defence and Space Technologies could also launch its IPO next month, but details are not yet clear.
The upcoming IPOs could face hurdles as the demand for recent public offerings witnessed lack of enthusiasm from retail investors and HNIs due to weak listings. It may be noted that five out eight public offerings in August listed at a discount.
The only company that saw a surge in its valuation after listing was Devyani International, which controls KFC and Pizza Hut franchises. Consecutive weak listings led to a tepid response for the IPOs of Nirma group’s Nuvoco Vista.
Analysts said heavy selloffs in the smallcaps and midcaps have led to the recent weakness in demand for IPOs. Some blame the bundling of too many IPOs, which led to the discounted listing.
However, analysts say weakness observed in new company listings over the past few days may not be a signal of fatigue in the IPO space. Experts believe that there is sufficient liquidity in the primary market and investors are willing to invest in good quality public offerings at attractive valuations.
However, some investors feel that the underperformance of recent IPOs would impact upcoming public issues and stock market listings. The same level of enthusiasm may not be seen in every IPO going forward. But sentiments may improve after a few well-valued IPOs hit the market and provide listing gains to investors.