Investors help IPOs make a strong start
The HNI portion was subscribed 5.52 times while the retail portion saw an over subscription of 5.18 times.
MUMBAI: Encouraged by the strong performance posted by a majority of IPOs in 2017, the primary market has managed to carry forward its winning momentum in 2018 as well with the two IPOs that were launched in the current month witnessing robust demand from all categories of investors.
The Rs 423 crore IPO from air conditioner manufacturer Amber Enterprises was oversubscribed 165 times with the portion received for institutional investors getting subscribed 175 times.
The portion reserved for high net worth investors (HNI) was oversubscribed 519 times while the quota set-aside for retail investors was subscribed 11.65 times.
On the other hand, the Rs 299.21 crore IPO from Newgen Software Technologies was oversubscribed 8.25 times with the portion set aside for institutional investors seeing an over subscription of 15.62 times. The HNI portion was subscribed 5.52 times while the retail portion saw an over subscription of 5.18 times.
Experts said that the impressive performance showed by the IPOs during the last year coupled with a strong rally in the secondary market since the beginning of 2018 have raised investors expectation regarding the post-listing gains.
The 30-share Sensex has soared 1,454.75 points or 4.27 per cent in January till date to trade at a record high of 35,511.58, while the broader 50-share Nifty has gained 364 points or 3.45 per cent to close at 10,894.70 during the same period.
Last year, 36 companies tapped the primary market raising as much as Rs 67,000 crore from the public.
Out of it, 66 per cent are still trading with a huge premium over their issue price with seven companies generating a return of over 100 per cent since their listing.