India prepares for a bustling week of primary market listings, with five mainboard offerings and an increasingly selective investor appetite shaping the landscape amid concerns over valuation and business quality.
India’s primary market is set for another heavy week of listings, with five mainboard offerings expected to come to market and several existing issues moving towards a close, according to Business Today. The pipeline underscores how busy the country’s initial public offering market has become, even as investors continue to weigh valuation, governance and the underlying quality of each business.
The largest of the new deals is Dhoot Transmission, which aims to raise Rs 3,067 crore. It has fixed a price band of Rs 829 to Rs 871 a share, with a lot size of 17 shares. Molbio Diagnostics is next, with a Rs 940 crore issue priced at Rs 768 to Rs 807 a share and a lot size of 18 shares. Both are scheduled to list on August 17. Milky Mist Dairy Food will then open on Tuesday, with a Rs 1,553 crore issue at Rs 133 to Rs 140 a share and a lot size of 107 shares, before Shiprocket launches a Rs 1,617 crore offer at Rs 92 to Rs 97 a share and Behari Lal Engineering opens a Rs 302 crore issue at Rs 271 to Rs 285 a share. Those two are due to list on August 19.
Alongside the new launches, Technocraft Ventures and LEAP India are set to close their subscriptions on August 11, with listings expected on August 13. Ardee Industries is also heading for the market, after its issue was subscribed 139 times between August 5 and 7, Business Today reported.
Market professionals say the tone of investor demand is becoming more selective. Karan Marwah, partner and CFO advisory leader at Grant Thornton Bharat, said the market has grown in both breadth and size, but investors are paying close attention to business quality, pricing, governance and visible growth. Arun Poddar, chief executive of Choice International, said valuation is broadly justified at the larger end, while weaker smaller deals are attracting more froth, and added that over the next 12 months he would watch financial services, profitable consumer technology and logistics.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
