In an extraordinary turn of events, the total bids for five initial public offerings (IPOs) launched this week have collectively surged beyond Rs 2.5 lakh crore. This staggering figure excludes the anchor investors’ allotment, a precursor that transpires a day prior to the public offering.
1. Tata Technologies Steals the Show: Bids Soar to Rs 1.56 Lakh Crore
Tata Technologies’ IPO has emerged as the star performer, amassing bids exceeding Rs 1.56 lakh crore, assuming the upper end of the price band at Rs 500 per share. The oversubscription rate reached an astounding 69.43 times the issue size, with bids pouring in for 312 crore shares against the available 4.5 crore shares.
2. Indian Renewable Energy Development Agency (IREDA): Robust Response with 38.8 Times Subscription
The IPO of the Indian Renewable Energy Development Agency witnessed robust investor enthusiasm, recording a subscription rate of 38.8 times. The bids amounted to 1,827 crore equity shares against the offer size of 47.09 crore. At the upper price band of Rs 32 per share, the estimated total bids reach Rs 58,470 crore.
3. Gandhar Oil Refinery: Subscribed 64.07 Times, Totaling Over Rs 23,000 Crore
Gandhar Oil Refinery’s IPO experienced a subscription frenzy, reaching 64.07 times, with bids for 136.1 crore shares against the available 2.12 crore. At the upper price band of Rs 169, the cumulative bids are anticipated to surpass Rs 23,000 crore.
4. Flair Writing Industries: Oversubscribed 46.68 Times, Garnering Over Rs 20,400 Crore
Flair Writing Industries witnessed an overwhelming subscription rate of 46.68 times, with bids totaling 67.28 crore shares against the issue size of 1.44 crore. At the upper price band of Rs 304 per share, the cumulative bids for this IPO are expected to exceed Rs 20,400 crore.
5. Fedbank Financial Services: Modest 2.2 Times Subscription, Reaching Rs 1,720 Crore
In comparison to the stellar performance of other IPOs this week, Fedbank Financial Services lagged with a modest 2.2 times subscription. Bids for 12.3 crore shares were received against the issue size of 5.6 crore, likely amounting to Rs 1,720 crore at the upper price band of Rs 140 per share.
Market Insights: Appetite for Quality Paper in Both Primary and Secondary Markets
Devang Mehta, Director of Equity Advisory at Spark Private Wealth, notes that while the secondary market sentiment has been on the rise, there is a strong appetite for quality offerings in the primary market as well. High net worth individual (HNI) clients, cautiously optimistic about Indian equities amid global uncertainties, are actively participating in the IPOs, demonstrating a willingness to allocate more funds during market corrections.