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The bearish market view swallowing up the Indian securities market in the past over one month has actually struck the IPO market considerably, as the existing public concerns are observing suppressed registration numbers.
Recent IPO listings like Afcon Infrastructure and Godavari Biorefineries likewise offered sharp adverse go back to the capitalists.
The bearish market view swallowing up the Indian securities market in the past over one month has actually struck the IPO market considerably, as the existing concerns are observing suppressed registration numbers. Recent listings like Afcon Infrastructure and Godavari Biorefineries likewise offered sharp adverse go back to the capitalists.
Currently, 4 mainboard IPOs are opened up yet none of the problem has actually been also completely subscribed. The Swiggy IPO, which is shutting today, has actually up until now gotten simply 24 percent registration till 12:57 pm.
The ACME Solar Holdings IPO and the Sagility India IPO are shutting tomorrow,Friday While Sagility has actually simply been barely completely subscribed with 1.02 times subscribtion, ACME has actually obtained just 58 percent registration up until now.
Interestingly, retail capitalists stay confident of the key markets as both ACME and Sagility IPOs have actually been completely subscribed in the retail group. The Swiggy IPO has actually likewise gotten 75 percent registration in the retail allocation, which is greater than any kind of various other allocation registration (NII or QIB) other than workers section that has actually gotten complete registration.
The Niva Bupa Health Insurance IPO, which opened up today, Thursday, likewise obtained a soft 9 percent registration in the very first fifty percent of the very first day of bidding process. In this problem likewise, retail has actually currently subscribed 47 percent of their allocation.
“Now, the key market (IPO market) is taking the hit considerably also as the total additional market (securities market) view stays bearish amidst FPI discharges from Indian equities. This is opposed to the current times when any kind of IPO obtained frustrating registration and hit listing,” said a stock market analyst.
The Indian markets have corrected sharply since September 26, 2024, when they hit their record highs. The NSE Nifty, which touched its peak of 26,277.35 on September 26, has now declined by 7.9 per cent to nearly 24,000.
The BSE Sensex has also fallen by 7.4 per cent to about 79,585, compared with its peak of 85,978.25 at the end of September.
Subdued IPO Listings
Amid the weakened market sentiment, most recent initial public offerings (IPOs) have given negative returns.
India’s largest Hyundai Motor India IPO, which was listed last month on exchanges, saw a 1.33 per cent listing loss for investors. Following that, Deepak Builders & Engineers also witnessed a 1.48 per cent erosion in investors’ wealth on the listing day.
Other IPOs also proved wealth destroyers with the worst being Godavari Biorefineries and Afcons Infrastructure that were listed at a discount of 12.5 per cent and 7.99 per cent, respectively.
However, only Waaree Energies IPO was a blockbuster listing during the period, which posted a huge 66.3 per cent gains on its listing day on October 28.
“Retail investors need to be cautious while applying for the IPO as the market texture is not favourable. Consulting a financial advisor is a must,” the expert stated.
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