 "Smallcap selloff weighs on sentiment causing dull debut for new listings")
The three companies that got listed on Wednesday had lacklustre debuts, with the recent selloff in smallcaps weighing on sentiment.
Shares of Jana Small Finance Bank (SFB) crashed 11 per cent below their issue price, while Capital SFB fell 7 per cent.
Rashi Peripherals finished with a gain of just 3 per cent, despite its initial public offering (IPO) garnering nearly 60 times subscription.
Market players blamed the weakness in smallcap stocks for the weak listings.
The National Stock Exchange Nifty Smallcap 100 came off as much as 9 per cent from this month’s high of 16,691 on February 8 before recovering marginally on Wednesday.
Investor responses to the three IPOs were mixed.
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Rashi Peripherals’ Rs 600 crore IPO was the most sought-after, while that of Jana SFB and Capital SFB subscribed 18.5 times and 4 times, respectively.
The IPOs of Jana SFB and Capital SFB were a mix of fresh and secondary fundraising. Both companies had to go public to meet the Reserve Bank of India norms around compulsory listing for SFBs.
At the last close, Jana SFB was valued at Rs 3,851 crore, and Capital SFB at Rs 1,956 crore. As of September 30, Jana SFB and Capital SFB had assets under management of Rs 23,000 crore and Rs 5,900 crore, respectively.
Rashi Peripherals’ IPO was entirely an offer for sale. The company is a leading distributor of global brands in the computing and communication space. It also provides pre-sales, technical support, marketing services, and warranty management services. At the last close, Rashi Peripherals was valued at Rs 2,112 crore.
Meanwhile, shares of Signpost India, which also debuted on Wednesday, finished at Rs 318, valuing the firm at Rs 1,700 crore. The company was formed following a merger with Pressman Advertising.
Signpost is India’s largest digital out-of-home company. It also offers a full suite of advertising services, including print, digital marketing, and public relations.
In 2022-23, Signpost had clocked revenue of Rs 342 crore and net profit of Rs 35 crore.