Yummy Desserts from IPO supermarket

The count of companies looking to go public is rising, as 8-10 firms are inline to launch their initial public offer (IPO) over next 2-3 months. Name of the companies waiting to go public includes - RBL Bank Ltd., Larsen and Toubro Infotech Limited, GVR Infra Projects Ltd., Quess Corp Ltd., Sandhar Technologies Ltd., GNA Axles Ltd., Centre for Sight Ltd., and Advanced Enzyme Technologies.

Before these IPOs hit the market, we should look at the previous episode of the year FY16. We have analysed all IPOs issued in FY16. Majorly the companies launching IPOs are peers in the listed area. Trend change was the flavour of the season, as sectors earlier unknown have hit the primary markets. These days, sectors like Dairy Farms, Healthcare, Microfinance and services are shining in IPO spectrum. Investors are more interested in such sectors because of their stronger growth prospects.

In 2016, we have 9 listed companies- Ujjivan Financial Services, Equitas Holdings, Thyrocare Technologies, Narayana Hrudayalaya, Parag Milk foods, TeamLease Services, Bharat Wire Ropes, Quick Heal Technologies and Precision Camshaft. These firms collectively raised Rs 7343 crore. Issues of these companies were oversubscribed.

Most of them were trading above their issue price, up by 9 to 52 per cent on the listing date.

Ujjivan Financial Services Ltd. has given highest returns to investors since issue- 72 per cent. Ujjivan’s peer Equitas Holding was not far behind with double digit returns (up to 57.82 per cent). Thyrocare and peer Narayana Hrudayalaya also rewarded investors with 35.06 and 27.28 per cent respectively. Some companies like Bharat Wire, Quick Heal Technologies and Precision Camshaft failed to attract investors’ interest. Now all eyes are on the upcoming IPO’s.