IPO market picks up, 5 firms to list in 30 days

There is a positive sentiment in the market with several IPOs generating good returns
Mumbai: The activities in the primary market is finally set to pick up momentum with several companies planning to the tap the equity market in the coming weeks. According to industry participants, as many as five companies are likely to launch their initial public offering (IPO) in the next one month.
While the Rs 600 crore IPO from Navkar Corporation and Rs 170 crore IPO from Pennar Engineering would open for subscription during the coming week. Sources added that Shree Pushkar Chemicals Prabhat Diary and Sadhbav Infrastructure are also in the process of launching their IPOs very shortly.
“Currently, there is a positive sentiment in the primary market with several IPOs which had hit the market in the recent past generating good returns for the investors. If there are no macro disturbances, quality IPOs which are reasonably priced would see good subscription from investors,” said Jagannadham Thunuguntla, head of fundamental research, Karvy Stock Broking.
Keynote Capital chairman B. Madhuprasad said that the decent performance registered by couple of IPOs post-listing has infused greater confidence in the minds of retail investors.
“This was the main reason why we saw overwhelming response from retail investors in the last two IPOs from Syngene International and Power Mech Projects Ltd,” he said, adding that the primary market could see at least 20 IPOs by the end of this financial year.
The IPO from Syngene International, which was launched during the last week of July was subscribed 32.05 times with the portion reserved for retail investors getting subscribed 4.7 times. The HNI category was subscribed 90.24 times while the qualified institutional buyers portion was subscribed 51.47 times.
( Source : deccan chronicle )
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