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The initial public offering (IPO) of state-owned Indian Renewable Energy Development Agency (IREDA), which closed on Thursday, garnered nearly 39 times subscription. The institutional investor portion of the issue was subscribed more than 100 times. Meanwhile, the IPOs of Tata Technologies and Gandhar Oil Refinery India were subscribed around 15 times each. The two other IPOs of Flair Writing Industries and Fedbank Financial Services (Fedfina) were covered 6 times and 0.9 times, respectively. These four issues close on Friday. All the five IPOs together will mobilise Rs 7,377 crore.
Tata Technologies is the first IPO from the Tata Group in almost 20 years. The company provides product development and digital solutions, including turnkey solutions, to original equipment manufacturers. The IPO – which is purely an offer for sale (OFS) by existing shareholders – values the company at Rs 20,283 crore.
IREDA has set the price band for its IPO between Rs 30 and Rs 32 per share. The Rs 2,150-crore IPO comprised a fresh issue of Rs 1,290 crore and an offer for sale of Rs 860 crore. At the top-end, the company is valued at Rs 8,610 crore in the IPO, almost the same as its book value. IREDA is engaged in financing renewable energy and energy efficiency projects.
Flair’s IPO comprises a Rs 292 crore fresh fund raise and Rs 301 crore worth of secondary share sale. Flair Writing Industries has set a price band of Rs 288 to Rs 304. At the top-end of the price band, the country’s leading pen and stationery products company will be valued at Rs 3,204 crore.
Fedfina’s Rs 1,092-crore IPO and Gandhar Oil’s Rs 500-crore IPO are also a mix of fresh fund raise and OFS. Fedfina is valued at Rs 5,165 crore in the IPO, while Gandhar at Rs 1,654 crore.
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Bankers said the strong demand for all the five IPOs indicates strong sentiment among investors towards primary offerings. Encouraging post-listing performance of companies listed this year have boosted sentiment.
Moreover, the gains made by retail investors in the mid-and small-caps segment this year have made them bullish on these new issues.
"All the deals have been bunched out this week. Next week we could have state elections and exit polls related to volatility. But expect the momentum to continue as the liquidity is strong,” said Ajay Garg, Founder of Equirus.
