We are seeing a lot of IPOs. Which one looks exciting to you?
There are these new-age technology stocks in the IPO market and that is going to be interesting to watch. It is not really a debate about the old economy versus the new economy. Even certain old economy stocks are adopting digital kinds of mechanisms and transforming themselves into new age companies. The first choice, if one were to do a top-down approach on the IPOs, will be from the technology aspect. Are these companies going to transform themselves into new-age technology driven companies?
The other choice would depend on how sustainable would these companies’ prospects be in future. Remember we are still in the midst of the pandemic and many of the companies including those listed already are underperforming relative to their past performance on the revenue or the profitability front. Some of these companies, which are coming up for IPOs, do not necessarily have a comparative backdrop for investors to understand
The initial public offer of auto component maker Craftsman Automation was subscribed 3.81 times on the last day of bidding on Wednesday. The Rs 824-crore offer attracted bids for 1,47,58,160 shares as compared to 38,69,714 shares on offer, according to an update on NSE. The category for qualified institutional buyers (QIBs) was subscribed 5.21 times, non institutional investors 2.84 times and retail individual investors (RIIs) 3.43 times. The initial public offer (IPO) comprised a fresh issue of Rs 150 crore and an offer for sale of 45,21,450 equity shares. It was in a price range of Rs 1,488-1,490 per share. Craftsman Automation had raised a little over Rs 247 crore from anchor investors on Friday.
NEW DELHI: The IPO of Craftsman Automation was subscribed 126 per cent on Tuesday, the second day of the bidding process. The issue was subscribed 55 per cent on the first day.
The issue has received bids for 48,56,990 shares against the 38,69,714 shares on offer. Shares under the Craftsman IPO are being offered in the price range of Rs 1,488-1,490, and investors can subscribe to the issue by betting in lots of 10 shares. Retail investors can bid for a maximum of 13 lots.
The IPO comprises a fresh issue of equity shares aggregating up to Rs 150 crore, and an offer for sale of up to 45,21,450 shares by the promoter and existing shareholders. On Friday, the company raised a little over Rs 247 crore from 21 anchor investors.
NEW DELHI: A rush of IPOs from businesses good and not so good, and aggressive pricing of such issues are considered important signs of an ageing bull market.
Dalal Street has currently been seeing strong subscriptions to all kinds of IPOs, many of which have been deemed aggressively priced. Worse, most of the IPOs with lofty valuations are also commanding strong premia in debut trade.
This, some market watchers say, suggests a bubble is building up in the IPO mart. “It’s a no-brainer! Investors are chasing listing gains and are unfazed by valuations. That calls for caution,” say analysts.
The ₹150 crore IPO of Craftsman Automation will open on March 15.It plans to use the funds to repay its ₹120 crore debt and for general corporate purposes.The