Last updated on July 30th, 2022 at 07:57 pm
Recent IPO Listings
Recent IPOs have had a tepid listing in the market with shares opening at lower than the offer price. The weaker fundamentals and the overvaluation of the Issues were another reason to have resulted in discounted valuations.
Aptus Value Housing is listed at Rs 333 per share as against its issue price of Rs 353 per share. Its IPO size was Rs 2780 crore and was subscribed 17.20 x. It offers home loans for purchase and self-construction of residential property, home improvement & extension loans, loans against property and business loans.
Chemplast Sanmar was listed on 24th Aug and listed with a mixed note. It got listed on the BSE at Rs 525 per share and on the NSE at Rs 550 per share against an offer price of Rs 541. The Company was trading at Rs 541.30 per share.
Nuvoco Vista was listed on 23rd Aug and the scrip was listed at a discount of 17% to its issue price of Rs 570 per share. The Issue was subscribed only 1.71x, that too it was largely driven by qualified Institutional buyers (QIBs). The scrip was trading at Rs 518.60 per share. The listing price was justified due to the high debt of the company on the balance sheet and weak fundamentals.
CarTrade Tech IPO debuted at a discount of 1.11% to its offer price of Rs 1618 per share. Though Car Trade Tech has strong fundamentals and is the only profitable company among its peers but the Issue had stretched valuations. Negative market sentiments also had an impact on the listing and it opened below its offer price.
[su_table]
| IPO | Offer Price | Listing Price | Listing Gain/Loss | Current Market price (CMP) | CMP Gain/Loss | Finance Post Recommendations |
| Aptus Value Housing | 353 | 333 | -5.67% | 346.9 | -1.73% | Not Rated |
| Chemplast Sanmar | 541 | 550 | 1.66% | 535.6 | -1.00% | Avoid |
| Nuvoco Vista | 570 | 471 | -17.37% | 520.55 | -8.68% | Avoid |
| CarTrade Tech | 1618 | 1600 | -1.11% | 1536.3 | -5.05% | Subscribe |
[/su_table]
The IPO market was buzzing with 12 mainboard IPOs having been launched with an IPO size of Rs 18,507 crore since the last two months. During this IPO season, the market has seen launches from the tech start-ups like Zomato, Clean Science, and pharma sector companies like Tatva pharma, Glenmark Life Sciences to name a few.
Issuers like GR Infra, Clean Science, and Tatva Pharma have given outstanding listing gains of 120%, 96%, and 95% respectively. They continue to trade well at the current market prices as well. Zomato IPO was a unique one that created a frenzy in the market and also delivered strong listing gains. One can check the IPO performance with our IPO Performance Tracker.
Among the IPOs listed in the last week, Windlas Biotech IPO also had a lower listing than its offer price, Exxaro Tiles and Krsnaa diagnostics had a tepid listing.
Analysing the listing results of the IPOs, it might be said that the companies with strong fundamentals and that have good growth prospects in the future continue to perform well. However, the IPO investments too need to be tracked on a consistent basis.
The fundamental analysis of the IPO is done by the team Finance post. Finance Post had given Avoid for Chemplast and Nuvoco. One can check fundamental analysis for other IPOs as well.
Sovereign Gold Bond Scheme 2021-22 upcoming VI series
The Government has decided to issue six tranches of the Sovereign Gold Bond Scheme 2021-22. Five tranches of SGB have already been launched to date. The recent fifth tranche of the Sovereign Gold Bond scheme came up with an issue price of Rs 4790 per gram (Rs 4740 per gram if applied online). The issue price has been declining because of the fall in gold prices.
Series 6 of SGB scheme 21-22 is expected to be open from Aug 30-Sept 3, 2021.
SGB investment comes with its own set of benefits such as the interest of 2.5% p.a, no risk of storage and liquidity options etc. SGB investment also provides a cushion against market fluctuations of gold prices. An investor might allocate some proportion based on one’s investment objectives and duration of investments.
Sovereign Gold Bond Scheme 2021-22
Invest in Gold without Physical Holding and Earn Interest Also- Find out How?
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