The mood at the start of this week is a constructive one. I am bullish on the economy, and the Prime Minister’s Independence Day address has only strengthened that view. In his speech, he announced a fresh set of growth measures for the Indian economy, and if these are carried through, they should keep the momentum going and support sentiment across the board. Against this backdrop, the primary market is gearing up for one of its busiest stretches in a long while.
A crowded pipeline into September
Between now and the end of September, we could see close to around 100 IPOs tapping the market, and some of them are major ones. The one everybody is waiting for is the NSE issue, a much awaited one that will draw attention from all categories of investors. When issues of such size come, they set the tone for the whole primary space, so all eyes will be on how it is received.
But a heavy calendar calls for caution. Most of these issues have their pricing on the higher side, aggressive day-of pricing you could say, and that is exactly where investors need to be alert and watchful. One should not get carried away in the rush and end up paying the price for these greedily priced IPOs. Watch the pricing, watch the market behaviour, and stay vigilant about where the money is going.
Next week’s line-up
For the coming week there are eight IPOs on offer. On the main board, the ones lined up are Horizon Industrial Parks, Lalithaa Jewellery Mart, Shankesh Jewellers, Gaja Alternative Asset Management, Skyways Air and Sunshine Pictures. All of them carry a somewhat greedy pricing nature, but investors can apply moderately across these issues and try their luck for an allotment.
On the SME front, only two issues have launched so far, Mopshop Distribution and Dhanwel Hybrid Seeds. Dhanwel Hybrid Seeds is worth a note. It was originally scheduled for June 2026, then withdrawn, and it has now been relaunched with some revised data. So one has to watch carefully what is emerging on it, as it is still in the launch phase.
On the main board, the much awaited NSE issue remains the one to watch, and its formal announcement is keenly anticipated.
On listing gains
Now to the question everybody asks, listing gains. Two of the main board IPOs, Juniper Green and Manipal Health, were ones where the general expectation was only an average response. Yet both listed at a premium, which surprised the market. To my mind, it was not surprising at all. It was simply the real valuation these companies were always meant to command, as both are placed in segments where they are working and expanding well.
Manipal Health is one of the marquee names to come to the market this year, from the Manipal Group of the South, a group that has done very well across many of its business models. By bed capacity it is India’s largest private multispecialty hospital network, with over 13,000 licensed beds across nearly fifty hospitals, and it leads the field in hospitalisation and health related services. Many expected it to list at a discount given the muted grey market sentiment, but it listed at about a 10 to 11 per cent premium over its issue price, rescued largely by strong institutional demand.
Will the trend of listing gains hold, or turn a little flat? It is likely to be moderate, because a flood of new primary offers is on the way. Much will depend on the quality of institutional support each issue draws, whether from the QIBs, the anchors and the like. Where an issue gets good backing, it can perform well on the paper. Otherwise, one should expect only average listing gains and an average subscription response.
A word of caution on chasing the pop
Should one invest in IPOs purely for listing gains? I remain firmly against the idea, because the primary market offer is meant for long-term investment. These companies are coming to the market for the first time, and there is no track record of their performance or their working to go by. That is precisely why patience matters.
To borrow from the veteran financial doyen Mr. Deepak Parekh, those who chase listing gains are making a big mistake. There are some 4,000-odd listed companies where a trader can churn out profits every five or ten seconds, so why come into the primary market chasing a listing pop? Let the primary market investor commit funds for the long term, and the reward will surely follow for those willing to wait.
At the end of the day, the stock market is a place where wealth quietly moves from the hurried investor to the patient one. Stay bullish on the India story, stay disciplined on pricing, and stay choosy. Every investment in the securities market carries an element of market-related risk, so be careful, stay tuned with the times, and invest wisely.