Unlisted IPO-bound stocks selling like hot cakes after one-month rally

IPO

Unlisted stocks with IPO potential are turning into hot picks, drawing a surge of investor interest over the past month. Shares of companies like NSE, NSDL, Vikram Solar, HDB Financial Services, Tata Capital, and Hero Fincorp have witnessed sharp price increases in the unlisted space.

Leading the rally is the National Stock Exchange (NSE), which has soared over 50 percent—from Rs 1,575 to Rs 2,370 per share— in the last one month driven by rising anticipation around its potential IPO and relatively attractive valuations compared to listed peers.

Manan Doshi, Co-founder of UnlistedArena.com, said the appeal lies in the opportunity to invest in high-profile companies before they go public, especially when the unlisted market offers compelling pricing.

Investor interest in NSE intensified following the unfreezing of its shares in late March. Since then, its unlisted investor base has expanded rapidly, further boosting demand and pushing prices higher.

Other IPO-bound stocks have also rallied sharply over the past month. NSDL rose over 20 percent to Rs 1,200 from Rs 995 per share. Vikram Solar gained more than 14 percent to Rs 435 from Rs 380, while Tata Capital climbed nearly 15 percent to Rs 1,035 from Rs 900. HDB Financial Services surged over 31 percent to Rs 1,250 from Rs 950, and Hero Fincorp jumped 31.5 percent to Rs 1,750 from Rs 1,330 per share.

“The unlisted space typically sees a spike in demand when IPO clarity emerges. Prices tend to rally as investors rush to get in before the listing window opens,” Doshi added.

Fuelling the momentum, several of these companies have recently received IPO approvals from the Securities and Exchange Board of India (SEBI). In April, SEBI extended NSDL’s listing deadline to July.

Vikram Solar received clearance for its Rs 1,500 crore IPO last month, and Hero Fincorp secured approval for its Rs 3,600 crore issue last week. HDB Financial Services, a subsidiary of HDFC Bank, received the green light for its Rs 12,500 crore IPO, while Tata Capital’s Rs 17,200 crore public issue is also expected to be cleared soon.

Sunny Agrawal of SBI Securities noted, “The surge in unlisted stocks like HDB Financials and Hero FinCorp appears to be driven by anticipation of an RBI rate cut. Following Friday’s rate reduction, their cost of borrowing is expected to decline, which could positively impact their earnings”. He further added, “As for Vikram Solar, the largest player in solar module manufacturing, the broader momentum in the renewable energy sector may be contributing to the recent uptick in its stock price.”

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