Primary market activity expected to decrease next week with 2 IPOs and 10 listings scheduled

IPO News

The ongoing correction in the secondary market seems to be impacting the primary market as there will be no new IPO launch in the mainboard segment next week, though action continues in the SME segment.

The Nifty 50 and BSE Sensex shed around 2.5 percent in the week ended February 14, while there was bloodbath in the broader markets with the Nifty Midcap 100 index falling 7.4 percent and Smallcap 100 declining 9.4 percent during the week due to rising earnings risk and high valuation. Further, the indices could not sustain on every recovery, indicating the continuation of sell on rally strategy by the market participants due to global trade war, persistent FII selling, and likely further delay in Fed rate cut.

In the SME segment, investors will see two IPOs with HP Telecom India being the first to hit Dalal Street on February 20. The mobile phones and accessories distributor intends to mobilise Rs 34.23 crore through its fixed price issue, at a price of Rs 108 per share.

Beezaasan Explotech will be the second initial public offering opening for subscription on February 21, with a price band at Rs 165-175 per share. The explosives and explosive accessories maker targets to raise Rs 60 crore book-built issue.

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Further, Quality Power Electrical Equipments, from the mainboard segment, will close its Rs 859-crore maiden public issue next week on February 18. On the first day of its bidding, i.e. February 14, it was subscribed 62 percent.

In the SME segment, LK Mehta Polymers, and Shanmuga Hospital will close their public issues on February 17, while the bidding for Royalarc Electrodes, and Tejas Cargo India IPOs will remain open till February 18.

Listings Next Week

Meanwhile, the listing schedule for the next week will be tight as a total 10 companies are slated for debut on the bourses including three from the mainboard segment.

Concrete equipment manufacturer Ajax Engineering will list on the BSE and NSE on February 17, followed by Hexaware Technologies making debut on February 19, and Quality Power Electrical Equipments on February 21.

All these three are not getting any major demand in the grey market, an unofficial market for trading in IPO shares till the listing, as according to market observers, their IPO shares traded with flat to 5 percent premium in the grey market.

In the SME segment, the trading in Chandan Healthcare shares will commence on the NSE Emerge effective February 17, while Maxvolt Energy Industries, Voler Car, and PS Raj Steels will list shares on the same exchange on February 19.

Further, on February 21, LK Mehta Polymers, and Shanmuga Hospital will debut on the BSE SME, and Royalarc Electrodes on the NSE Emerge.