Investors lap up shares of Emcure, Bansal Wire; bids cross Rs 1.25 trillion

The demand for both issuances reflects the positive sentiment among investors and could be a harbinger for more initial public offerings (IPOs) in the coming weeks, said industry players

Investors made a beeline for shares of generic pharma company Emcure Pharmaceuticals and metal wires manufacturer Bansal Wire, with the cumulative bids for both offerings crossing Rs 1.25 trillion.

The demand for the issuances reflects the positive sentiment among investors and could be a harbinger for more initial public offerings (IPOs) in the coming weeks, said industry players.

Emcure’s IPO garnered nearly 68 times subscriptions, with total bids exceeding Rs 93,700 crore. The institutional investor portion was subscribed 196 times; the wealthy investor portion 48 times; and the retail portion 7.2 times. The Rs 1,952-crore IPO of the Pune-based firm was a combination of a fresh issue worth Rs 800 crore and an offer for sale worth Rs 1,152 crore.  The company plans to utilise the fresh issue portion to repay its debts. Emcure is a pharma company with a target market across 70 countries.

Bansal Wire’s IPO - entirely a fresh issue of Rs 745 crore — saw nearly 60 times more demand than shares on offer. The company plans to utilise the funds raised through the issue to repay its and its subsidiary's debt. Bansal Wire and its subsidiary offer stock-keeping units in three broad segments: high carbon steel wire, mild steel wire, and stainless steel wires. It has a presence in 22 states and six Union territories. The robust subscription of the two issues was attributed to the post-listing gains of the newly listed shares.

"There is enough liquidity in the equity market to absorb new issuances, and the current issuances offer 30-35 per cent premium in the grey market. And till the premiums fall to 10-15 per cent, there is no reason to be worried. As long as pricing is reasonable and there is scope for premium, the demand will continue to be robust," said Arun Kejriwal, founder of Kejriwal Research and Investment Services.

During the first half of 2023, 36 companies raised shares worth Rs 31,279 crore. The BSE IPO index, a gauge tracking newly listed firms, is up almost 30 per cent year to date.

Nephro Care India makes stellar debut on NSE SME

Nephro Care India made a blockbuster debut on the NSE SME on Friday, with its shares getting listed at Rs 171, a 90 per cent premium over its issue price of Rs 90. The shares moved higher to Rs 179.55 after the listing and locked in 5 per cent upper circuit, quoting 99.50 per cent higher over the issue price on the NSE SME.
 

Nephro Care India's IPO aimed to raise Rs 41.26 crore, consisting solely of fresh issue shares of around 4.58 million shares. The IPO's price band was set between Rs 85 and Rs 90 per share, with a minimum lot size of 1,600 shares requiring an investment of Rs 1,44,000 for retail investors.