The IPO Rush: Grey market stays bullish, as retail investors can’t get enough

• As many as eight IPOs are hitting Dalal Street this week, intending to raise over ₹4,228 crore.
• The grey market expects five of the eight stocks to give over 40% listing gains.
• Doms, Inox and India Shelter Finance opened last week and received stellar response.

It’s the week where eight companies are hitting the primary market with their share offerings. These initial public offers (IPOs) are looking to raise over ₹4,228 crore. While none of them match the size of fundraising the week Tata Tech opened in, the grey market is the most bullish as it’s ever been.

The grey market expects five of the eight stocks to give over 40% listing gains. Moreover, it’s placing a multibagger-like bet on Jaipur-based Motison Jewellers. As expected, this issue was subscribed within an hour of opening. It was subscribed by 15x on the very first day, with outsized interest from retail investors.

The other two issues that opened on Monday – Muthoot and Suraj were not fully subscribed on the first day. However, both their retail books were fully subscribed, showing that investors are ready to place their bets on the companies.


Two more IPOs are opened on Tuesday – Happy Forgings and Credo Brands. They raised ₹303 crore and ₹165 crore from anchor investors on Monday evening, respectively. And all of them are subscribed twice over on the first day of the issue.

IPO subscription details

Name	Issue Size	Subscription details	GMP
Motisons Jewellers	₹151.09 crore	51.5x on day 2	182%
Muthoot Microfin	₹960 crore	2.83x on day 2	31%
Suraj Estate Developers	₹400 crore	2.42x on day 2	19%
Happy Forgings	₹1,008.59 crore	2.32x on day 2	53%
Credo Brands	₹549.78 crore	2.09x on day 1	45%
RBZ Jewellers	2.28	2.28x on day 1	NA
Azad Engineering	₹740 crore	NA	72%
Innova Captab	₹320 crore	NA	47%
Total Amount	₹4,228 crore	-	-

Listing gains in focus this week

The IPOs that opened last week, Doms, Inox India and India Shelter Finance also received overwhelming response. Pencil maker Doms was subscribed 93 times the shares on offer. Inox was subscribed 61 times, and India Shelter Finance was subscribed 36 times.

Investors bid for the issues enthusiastically, with the retail portion being subscribed around 10x or more. As benchmark indices scale new highs, most of these fresh debuts are expected to provide good listing gains too – all of them over 30%.

“A key reason for the strong interest in IPOs has been an increased focus on profitability and reasonable pricing of deals, at least relative to prevailing higher valuation multiples in listed peers,” said Mahavir Lunawat, managing director, Pantomath Capital Advisors.

IPOs opened last week

Name	Issue Size	Subscription details	GMP
Doms	₹1,200 crore	93x	67%
India Shelter Finance	₹1,200 cr	36.6x	33%
Inox India	₹1,459.32 crore	61x	83%

As of now, December IPOs aim to raise over ₹8,000 crore. Going into the new year too, the IPO season is expected to remain busy, and go on until the general elections in May next year.

“Markets are likely to witness a robust capital raise next year as well. There are more than 65 IPO documents filed with Sebi. Of these, 25 have already received Sebi nod,” said Lunawat.