While Hariom Pipe has tripled investors’ wealth, rising 222% since listing, Venus Pipes has surged 122%.
The Rs 130-crore IPO of Hariom Pipe Industries was subscribed 7.93 times earlier last year. The company made its debut on the exchanges with a nearly 40% premium over the IPO price and has rallied multi-fold since then. So far this year, the stock is down about 32.37%.
Headquartered in Hyderabad, Hariom Pipe is a premium manufacturer of iron and steel products. The company has a diverse product portfolio consisting of mild steel billets, pipes and tubes, hot rolled coils and scaffolding systems.
Meanwhile, the Rs 165-crore public offer of Venus Pipes received a strong response from investors with 16 times subscription. The shares debuted at a mild premium of 3.5% but did not look back since. So far this year, the shares are up 5.57%.
Archean Chemical Industries and Kaynes Technology India are two companies that made their debut in FY23 and offered returns of over 50% to investors.
The initial share sale of Life Insurance Corp. (LIC), India’s biggest IPO till date, is rendered among the worst performers in FY23, with the stock trading 45% below the issue price.
Some other marquee names at the bottom of IPO charts include Delhivery and Inox Green Energy Services, whose stocks are down 32% and 39%, respectively to the issue price.
Overall, out of a total of 37 IPOs, 14 are trading below issue prices and 22 are above the offer prices.
Going ahead, experts are confident that good companies would continue to get demand from investors despite current choppy markets. However, companies may get vary about hitting the primary markets.
Markets regulator SEBI returning IPO documents is at a historical high and the actions taken have turned investment bankers cautious while filing documents.
Kulbhushan Parashar of Corporate Capital Venture says the current muted trend in the IPO market is a short-term fluctuation.
“The upcoming months, especially from Q2FY24 should witness an acceleration in filings with both the corporates resorting to efficient capital and the regulator offering much-needed clarity on the disclosures to quicken the processing time,” he said.
(With data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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