In a display of investor confidence and market enthusiasm, four Indian companies achieved stellar stock market debuts in August 2023. The firms—Aeroflex Industries Ltd, Concord Biotech, TVS Supply Chain Solutions, and SBFC Finance—enjoyed substantial premium on listings.
Aeroflex Industries Ltd Lists at 82% Premium
Aeroflex Industries Ltd, a company with a market value of ₹351 crore, saw its initial public offering (IPO) subscribed 97.11 times in total. The Qualified Institutional Buyers (QIBs) category was subscribed 194.73 times, while the Non-Institutional Investors (NII) category was not far behind with 126.13 times subscription. The retail quota attracted substantial interest, with a subscription of 34.41 times.
The Aeroflex IPO was priced in the range of ₹102 to ₹108 per equity share. The IPO consisted of a fresh issue of equity shares amounting to ₹162 crore and an offer-for-sale (OFS) of up to 1.75 crore equity shares by the promoter group. The company had secured ₹103.68 crore from anchor investors before the IPO. The stock eventually debuted on the BSE with a premium of 82.78%, opening at ₹197.40 apiece, compared to the issue price of ₹108 per share.
Concord Biotech lists at 21.46% Premium
Concord Biotech, with a public issue valued at ₹1,551 crore, saw a subscription of 24.87 times. The IPO was offered in the price band of ₹705 to ₹741 per share. Notably, it was entirely an offer for sale (OFS) of 2.09 crore shares by Helix Investment Holdings. The stock made its debut on the BSE at ₹900.05 per share, a premium of 21.46% over the issue price of ₹741.
TVS Supply Chain Solutions lists at 5.1% Premium
TVS Supply Chain Solutions, a division of the TVS Mobility Group, successfully launched its IPO with a price band ranging from ₹187 to ₹197 per share. The IPO comprised a fresh issue of shares worth ₹600 crore and an offer for sale of shares valued at ₹280 crore. The company had previously garnered ₹396 crore from 18 anchor investors.
When it debuted on the NSE, TVS Supply Chain Solutions shares were listed at ₹207.05 apiece, representing a 5.1% premium to the issue price. Meanwhile, on the BSE, the stock opened at ₹206.30 per share, reflecting a 4.72% premium over the issue price.
SBFC Finance: A Strong 44% Premium Listing
SBFC Finance marked its entry into the stock market with a bang as its shares opened at ₹81.99 on the BSE, presenting investors with a remarkable 44% premium. The stock then reached an intraday high of ₹93.26, further exemplifying the robust demand for its shares.
Generally, it is not advisable for retail investors to invest in the IPO market due to the high intensity of the sales effort by the financial services industry and the resulting full prices (on average). This article is not an endorsement of any sort and does not constitute any advice. Investors are asked to conduct their own due diligence before investing.
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