The benchmark Sensex and Nifty gained around 19 percent each last year. In 2023, some 57 Indian companies raised around Rs 49,000 crore through mainboard IPOs. And, 27 companies have secured the green light from the market regulator to raise around Rs 29,000 crore from public.
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Udayshivakumar Infra faced the worst listing in 2023, dropping 10% on its debut but currently trades 12.1% higher than its issue price. Its IPO opened on March 20, closed on March 23, priced at Rs 33-35/share, raising about Rs 66 crore. The stock reported revenue of Rs 140 crore in the September quarter, up from Rs 116.56 crore the previous quarter. Net profit remained steady at Rs 5.04 crore compared to Rs 5.17 crore last quarter.
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Avalon Technologies faced the second worst listing day in 2023, dropping 8.8% from its Rs 436/share issue price. Despite the initial setback, it has recovered and now trades 22.8% above its issue price since listing. The IPO opened on April 3, closed on April 6, oversubscribed around 2.3 times, and listed on exchanges on April 18. The firm reported an 18% YoY decline in the second quarter, attributed to a 14% fall in US business revenue, while India business showed robust growth at 16% in the first half of 2024. The order book surged to Rs 1240 crore by September 2023, primarily driven by clean energy and industrial segment inflows. Currently, 75% of production occurs in India, with plans to shift some production from the US to India to reduce costs. Working capital days, which rose to 151 in Q1FY24, are improving, with expectations to reduce them by 10-15 days according to analysts.
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Muthoot Microfin Ltd saw a 7.2 percent drop at listing and is trading 14 percent below its Rs 291 issue price per share. The IPO, open from December 18 to 20, raised around Rs 960 crore. The funds are aimed at bolstering the company's capital base to meet future needs arising from business growth and assets. The Kochi-based institution reported a 246 percent year-on-year growth in net profit to Rs 163.9 crore for the FY23 ended March, with a 71.6 percent revenue increase to Rs 1,428.8 crore. For the six months ending September FY24, its profit after tax surged 16.5-fold to Rs 205.2 crore compared to the previous year, while net interest income during the same period rose by 65.6 percent.
Suraj Estate Developers Ltd experienced a 6.4 percent loss on its listing day and is trading more than 8 percent below its Rs 360 per share issue price. The IPO, open from December 18 to 20, raised around Rs 400 crore. The company plans to use the net fresh issue proceeds to repay debts of Rs 285 crore and allocate Rs 35 crore for land acquisition or development rights in the Mumbai Metropolitan Region. The remaining funds will be utilised for general corporate purposes. Suraj Estate Developers constructs residential and commercial real estate in South Central Mumbai, relying entirely on third-party contractors for construction services.
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IRM Energy Ltd had a lacklustre listing, dropping 6.4% from its Rs 505/share issue price. However, it's currently up by around 22.8% from its issue price. The IPO opened on October 18, closed on October 20, and listed on October 26, raising around 545 crore. Profit margins decreased to 5.4% in FY23 from 20.8% in FY22, while EBITDA margin fell to 10% from 31% in the same period. Return ratios declined significantly: RoCE dropped from 45.4% to 16.3%, and RoE fell to 18.2% from 52.5%. Simultaneously, total debt surged by 53.8% to Rs 393.3 crore in the year ended March 2023 from Rs 255.7 crore in the year-ago period.
